Question: This activity is important because marketing channels rely on logistics to make products available to consumers and industrial users. As a marketing manager, one must

This activity is important because marketing channels rely on logistics to make products available to consumers and industrial users. As a marketing manager, one must manage the marketing channels logistics to get the right amount of the right products to the right place at the right time at the lowest possible cost.
The goal of this activity is to demonstrate your understanding of the total logistic cost factors, which are expenses to be minimized.
For each scenario below, select the appropriate logistical cost factor.
1. Costco sells car, truck, and boat batteries. The price for its batteries includes a "core charge"; that is if customers bring their old batteries into Costco, the company arranges for UPS to ship the dead battery back to the manufacturer where the lead contained in them is recycled.
(Click to select)
2. Hyundai located its U.S. manufacturing plant in Montgomery, Alabama, in part because it is close to the large seaport of Mobile, Alabama, where many of the parts used for manufacturing its vehicles are shipped from all over the world.
(Click to select)
3. Walgreens has 14 distribution centers in the United States that are used to facilitate sorting and consolidating of products from different manufacturing plants or suppliers.
(Click to select)
4. Chrysler requires all of its parts suppliers to connect to its electronic data interchange to facilitate the notification to suppliers of when Chrysler will be needing more parts.
(Click to select)
5. Compared to Target and Walmart, Kmart customers more often experience an item on their shopping list being temporarily unavailable.
(Click to select)
6. Toyota has a manufacturing plant in Indiana where several popular Toyota vehicle models are assembled. Toyota has adopted the just-in-time strategy that requires fast on-time deliveries by all of its suppliers.
(Click to select)
7. Ford Motor Company has a manufacturing assembly facility in Hermosillo, Mexico. The company made sure to locate the plant near a rail line so it can ship the Ford Fusions produced in the plant to the United States with the lowest possible cost.
(Click to select)
8. Because compact fluorescent light bulbs (CFLs) contain the hazardous material mercury, manufacturers such as Phillips have invested in the recycling process for CFLs.
(Click to select)
9. Frito-Lay has agreed with some convenience store chains to adopt a vendor-managed system where Frito-Lay replenishes the shelves for convenience stores.
(Click to select)
10. Coca-Cola bottlers have invested heavily in automated forklifts to move large amounts of soft drink bottles and cans, including a robotic palletizing system that facilitates the movement of goods within and out of their manufacturing plants.
(Click to select)
11. SC Johnson makes Ziploc, Glade, Windex, and Pledge brand products sold in a wide variety of retailers including mass merchants, grocery stores, and convenience stores. A very large portion of the company's retailers purchase from SC Johnson electronically and they are invoiced electronically.
(Click to select)
12. At Thanksgiving, Americans shop for traditional items such as turkey, cranberries, pies, green beans, and stuffing. Many shoppers need those items immediately, so if a Safeway grocery store doesn't have an item, shoppers won't just wait for their next shopping trip to get them; they will go to a different store, such as Albertson's or Kroger, to get them.
(Click to select)

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