MARKETNG 300 1st Edition Lecture 14 Outline of Last Lecture XXIII. Chapter 11 Terms (part 1)XXIV. Chapter 11 Concepts to Apply (part 1)Outline of Current Lecture XXV. Chapter 11 Terms (part 2)XXVI. Chapter 11 Concepts to Apply (part 2)Current LectureXXV. Chapter 11 Terms (part 2)- Transporting: the marketing function of moving goods. makes products available when and where they need to be - at a cost.- Containerization: grouping individual items into an economical shipping quantity and sealing them in protective containers for transit to the final destination- Piggyback Service: loading truck trailers - or flatbread trailers carrying containers - on railcars to provide both speed and flexibility- Storing: the marketing function of holding goods so they're available when they're needed- Inventory: the amount of goods being stored.- Private Warehouses: storing facilities owned or leased by companies for their own use- Public Warehouses: independent storing facilities- Distribution Center: special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costsXXVI. Chapter 11 Concepts to Apply (part 2)4. What are the pros and cons of the major transportation methods?Truck: pros: fast delivery speed, very extensive amount of locations, high ability to handle variety of goods, high frequency of shipments, dependable in meeting schedules. Cons: highcostRail: pros: extensive amount of locations served, high ability to handle variety of goods. Cons: low frequency of scheduled shipmentsThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Water: pros: very low cost, very high ability to handle a variety of goods. Cons: very slow delivery speed, limited number of locations served, very low frequency of shipments scheduleAir: pros: very fast delivery speed, very extensive amount of locations served, high frequency of scheduled shipments, high dependability of meeting schedules. Cons: very high cost, limited ability to handle a variety of goodsPipeline : pros: low cost, high dependability in meeting schedules. Cons: slow delivery speed,very limited number of locations served, very limited ability to handle a variety of goods5. Why is storage necessary? What are the costs associated with storage? Storage is necessary to hold inventory which we need when production doesn’t match consumption, to keep prices steady, to achieve production economies of scale, and to build channel flexibilityCosts associated w/ storage: cost of storage facilities, handling costs, cost of damage while in inventory, cost of risks (longer it sits, more likely it could get damaged), cost of inventory becoming obsolete, and interest expense and opportunity
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