Exam 3: Role of Logistics in Supply Chains

As the weight density of a product decreases, transportation cost per pound:

In a logistics system, warehousing should be optimized at the expense of related logistics activities, such as transportation and procurement.

What activity is described as the movement of goods into a warehouse, the placement of goods in a warehouse, and the movement of goods from storage to order-picking areas and eventually to dock areas for transportation out of the warehouse?

Which of the answers below is an example of the creation of form utility by a logistics activity?

As a firm spends more on transportation service, cost of lost sales:

The utility created through the basic marketing activities is known as place utility.

A national drug store chain arranging to have Valentine greeting cards and candies in its stores by mid-January is an example of which utility?

What is often the largest component of logistics costs?

Physical distribution has a special relationship to marketing. What is the nature of the relationship between logistics and marketing? Is the relationship becoming more or less important? Why?

As the dollar value of a product decreases, its inventory value decreases.

What product characteristics affect logistics costs? Discuss the effects of these characteristics on logistics costs.

The inverse relationship that exists between the cost of lost sales and inventory costs is the inventory effect.

Logistics creates which utility through the movement of goods from production points to markets where there is a demand for the finished product?

The text mentions four subdivisions of logistics. Pick one, define, and discuss.

What are fixed spatial points where goods stop for storage or processing?

As a firm spends more on transportation service, cost of lost sales increases.