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

True or False

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

True or False

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

True or False

4.) The trend toward pull systems where the product is pulled in response to demand (as opposed to being pushed in advance of demand) increases inventory levels, which can increase total logistics costs even though production costs may decrease.

True or False

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

True or False

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

True or False

7.) The value that is added to goods through a manufacturing or assembly process is:

increases.

decreases.

stays the same.

can't be determined.

8.) The utility that is created by delivering the proper quantities of an item to where it is demanded is referred to as _____ utility.

possession

form

time

quantity

9.) 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?

Quantity utility

Place utility

Time utility

Form utility

10.) Carrie, the logistics manager of an appliance manufacturer, has been tasked with designing the warehouse at the companys new facility. At the moment, she is working out where trucks will deliver raw supplies and pick up finished products for shipment, which is an important element of:

inventory control.

transportation.

materials handling.

production planning.