LSCM 4560 exam 1
Transportation is affected by different forms of laws. Which form of law relies on judicial precedent or principles of law developed from former court decisions?
common law
The benefit/cost ratio is used to:
compare the total measurable benefits to society of a transportation project with the initial capital cost
The federal government has promoted railroads through:
conrail, subsides, and amtrak
Governments have frequently intervened in the transportation marketplace. The rationale for government intervention includes:
Imperfections in the marketplace, substitution of regulation for competition, and necessity for government ownership and control
This form of anti-trust violation is illegal by performing the act--competitors do not need to demonstrate economic harm:
Per se violation
Which of the following focused on the movement of finished goods or the outbound flow of a firms logistics system:
Physical distribution
The authors argue that supply chain management is not a new concept. Rather, supply chain management represents the third phases of an evolution that started in the 1960s. The first two phases included:
Physical distribution and business logistics
Logistics:
Plans, implements, and controls the efficient flow of goods and services
Which of the following eras of transportation regulation attempted to protect carriers:
Positive regulation
The evolution of transport systems occurred in four stages. The four stages include:
Pre-industrial, industrial, Fordism, and post-fordism
During the Promotional era of transportation regulation, Congress attempted to:
Promote transportation through the use of land grants
The increase in internet purchases has:
Put pressure on the logistics and transportation networks due to the explosion in the number of small package deliveries.
Since 2008, diesel fuel costs have been cut nearly in half. By applying Lardner's law, the market area served by a company using autonomous vehicles would:
Quadruple in size
The role of courts in transportation regulation has involved all of the following except
Rates-setting and enforcing rates published in common carrier tariffs
Reliability reflects the carrier's ability to deliver on-time. Customers rate reliability as the most important attribute in selecting carriers because:
Reliability affects the amount of safety stock held by the customer
This law prohibits sellers from practicing price discrimination among buyers unless the difference in price can be justified by true differences in the costs of servicing these buyers:
Robinson-Patman Act
Transportation has several service components. Which service component is concerned with freight damaged during transit?
Security
What is meant by the modal "split?"
Split of total freight volume between transportation modes
This Act deregulated the railroads:
Staggers Act
This independent regulatory commission replaced the Interstate Commerce Commission and has responsibility for the economic regulation of interstate pipelines (non-energy), motor carriers, and rail carriers:
Surface Transportation Board
The focus of a cost trade-off is to obtain:
The best or lowest physical distribution system cost
Why is so much info captured at the POS.
The bull-whip effect can be avoided since upstream suppliers have visibility over actual demand and do not need to forecast .
The landed cost of the product includes:
The cost of the product at the source and any costs required to transport the product to final destination
The concept of derived demand when applied to transportation and logistics suggests:
The demand for transportation is derived from the demand for goods and services.
The demand for transportation is generally referred to as derived demand. The concept of derived demand means:
The demand for transportation is derived from the demand for goods.
Canals represented one of two major phases or modifications of transport systems during the industrial revolution. The second major modification [phase] was:
The development of rail systems
Transportation has played an important role in the defense of the US. Which of the following transportation projects was developed to enhance the ability to defend the country?
The interstate highway system
Each transportation mode possesses an inherent advantage. US transportation policy:
attempts to recognize and preserve the inherent advantage of each mode
The rationale for government control and intervention in the transportation marketplace stem from:
imperfections in the marketplace in a free-enerprise economy
the specific purpose of transportation is to:
fulfill a demand for mobility
The total ton-miles of freight in the US...
has increased and continues to grow but at a slower rate than the overall economy.
The percent of total disposal income spent on transportation by the average US household is:
16 to 20 percent
A ton-mile is a measure of transportation movement. Which of the following is correct regarding the movement of 500 tons for 4 miles:
2000 ton miles occurred (4×500)
The amount of money spent on trucking, as reported by CSCMP in their annual State of Logistics report, represents what proportion of total logistics expenditures in the US?
47 percent
A shipment of 100 tons moving 50 miles would be how many ton miles?
5000
Supply chain mgmt came into vogue during the early 1990s. We can view supply chain mgmt as :
All of the above
The efficiency of and systems was poor prior to the industrial revolution. As a result, transportation had a major effect on trade including which of the following?
All of the above
Prior to the end of the 18th century, no forms of mechanized transport existed. Transport was mainly limited to:
Animal and wind power
Except for the recent recession, the volume of US ton-miles has been on an upward trend since 1980. We can best explain this change in the number of ton-miles by:
he growth in the US economy and the demand for transportation increased use of long-distance , international aircargo carriers.
Transportation variability affects logistics management through:
higher safety stock levels
The underlying logic of the systems concept was the rationale for the development of logistics. The systems concept involves:
making trade-off analyses to lower total logistics costs
The focus of physical distribution was on system costs and analyzing trade-off scenarios. The application of these techniques initially focused on:
outbound [downstream] logistics
In the selling and purchase of transportation services, two types of anti-trust violations can occur. Which type of anti-trust violation, such as price fixing, is illegal regardless of whether economic harm was done?
per se violation
Home-flag promotion attempts to protect domestic carriers by:
requiring that only US-owned and domestic crews can originate and terminate domestic freight.
A key relationship exists between marketing and logistics. The relationship can be explained by:
the 4Ps of marketing. Logistics represents the place, or customer service, component of marketing.
The transportation modes also differ on the service characteristic of reliability. In terms of transportation, reliability refers to:
the ability to achieve consistent transit times.
A mode's accessibility refers to:
the ability to move freight between a specific origin and destination.
The annual CSCMP State of Logistics reports show that motor carriers account for approximately half of the logistics expenditures in the United States. We can best explain this phenomena by:
the cost trade off occuring between the use of expensive motor carriers to obtain a much lower inventory carrying cost--only 24 percent of logistics expenditures
The concept of derived demand when applied to transportation and logistics suggests:
the demand for transportation is derived from the demand for goods and service.
The determination as to whether a state may regulate transportation is usually determined by whether:
the shipment crosses a state boundary mined
The concept of transportability refers to:
to ease of a movement, with high transportability requiring limited efforts and low transportability implying complexity and high costs.
The concept of geographic specialization suggests:
transportation is necessary to exchange goods between locations where different goods can be produced the most efficiently
Tolls for passenger vehicles represent which form of user charges?
unit charge
Consider a firm with a net margin of 10 percent earnings before income tax (EBIT). Which will have the greatest effect on the profitability of the firm:
A reduction in logistics costs of $40,000
This legislative act ended the promotional era and began the initiation era of transportation regulation:
Act to Regulate Commerce
This legislative act established the first independent regulatory commission and began the Initiation Era of transportation regulation:
Act to regulate Commerce
Logistics has evolved over time and expanded in management scope. The book suggests that logistics in its simplest form:
Added the inbound side to the outbound logistics of physical distribution
The Antonov AN-124 is the largest cargo aircraft in regular commercial service. This aircraft can transport out-sized cargo long distances. Which service component is demonstrated by the use of the AN-124?
Capability
A direct economic impact of transportation would occur when:
Changes in transportation accessibility results in increased employment.
The US legal system has evolved over time. The system is based on two forms of law, and both have applications in transportation. This form of law relies on judicial precedent or principles of law developed from former court decisions.
Common law
Four factors led to the remarkable economic, technological and social changes brought by the industrial revolution. Which of the following is one of the four factors?
Communications and transport infrastructure
This concept suggests an area will produce the goods or services for which it is best suited. For example, some regions have specialized in the manufacture of textile or apparel products. Which of the following incorporates this concept?
Comparative advantage
As transportation regulation evolved over time, three "pillars" or major themes emerged. The major themes or areas addressed in regulatory legislation included:
Control of rates, entry, and competition
The 1940 statement of transportation policy requested the ICC to administer regulation by recognizing and preserving the inherent advantage of each mode. An inherent advantage refers to the innate superiority of a transportation mode in terms of its:
Cost or service characteristics performed better than other modes
One of the most significant socioeconomc impacts of transportation is the mobility gap. The mobility gap refers to:
Differences in moibility due to several factors such as income, time, means, and access.
"Transportability" refers to:
Ease of movement of freight, passengers, or information
At the carrier level [disaggregate demand], the demand for transportation would most likely be:
Elastic
Which of the following distance calculations sums a vehicle can move on a stragglers line between 2 points ?
Euclidean distance
This independent regulatory commission was created to administer the regulations governing rates and practices of oil and gas pipelines.
Federal Energy Regulatory Commission (FERC)
Which independent regulatory commission has responsibility for administering the economic regulation of interstate oil and gas pipelines?
Federal energy Regulatory commission
Regulating interstate commerce is the responsibility of the:
Federal government
During the Initiation era of transportation regulation, Congress attempted to:
Increase the powers of the ICC and close major loopholes in legislation governing the economic regulation of transportation
A supplier decides to experiment with the pricing of a product to determine its demand elasticity. The price is lowered, but no change in demand occurs. The supplier concludes that the elasticity of demand for this product can be described as:
Inelastic
Technologcal and economic growth are closely related and can be articulated within the concept of cycles or waves. The current, or fifth, wave mainly relies on:
Information technology.
During this era, Congress and the ICC recognized that competition could take three different forms: intramodal, intermodal, and private versus for hire.
Intermodal era
You are planning to switch from trucks to rail to move goods on an on-going basis from the west coast to replenish inventories at retail outlets in the DFW area. You would expect which of the following to occur ?
Inventory costs would increase while transportation costs would decrease.
Under value of service pricing, carriers are more likely to charge higher transportation rates [prices] for which types of items
Inventory requirements
Many historians credit this President for beginning the movement to deregulate the transportation industry.
John F. Kennedy
What has been the foundation for federal regulation of transportation?
Judicial decision that only the federal government can regulate interstate carriers
Domestic water carriers are promoted through:
Maintenance of lock and dam system by the US army corps of engineers
In the United States, two processes are used for allocating transportation resources. A carrier's decision to add more equipment based on customer demand would be an example of which allocation process?
Market
The authors of the online text argue transportation is an economic factor of production of goods and services. They base their argument on:
Market accessibility linking producers and consumers.
This mode of transportation ships the most intercity ton-miles of any mode:
Motor carriers
Prior to the industrial revolution, international trade can be described as:
Negligible due to inadequate land systems and relatively low maritime movement
Reverse logistics refers to which of the following:
The return of products from downstream customers or trading partners to upstream suppliers.
The demand for transportation can be examined at different levels of aggregation. Aggregate demand refers to:
The sum of the individual demands for transportation
The total cost approach for managing logistics suggests
The total cost approach for managing logistics suggests
Logistics and supply chain management are frequently used as interchangeable (synonymous) terms by many companies and authors. Which of the following statements is correct regarding the relationship between logistics and supply chain management?
These terms are not interchangeable since supply chain management integrates product, information, and cash flows among organizations while logistics has been responsible for managing the physical flow of products across companies.
Transportation can be considered to be a market composed of suppliers of transport services and users of these services. Within this market exist two interdependent concepts, transport supply and demand. Transport demand refers to:
Transport needs.
The single largest cost affecting facility location decisions is
Transportation
The simple grid (aka the center of gravity) model:
Uses Euclidean distance for determining total cost
Which of the following models uses concetric rings to explain how economic activity radiates out from a city center?
Von Thuen
Which location model uses concentric rings to explain how economic activity radiates out from a city center
Von thuen
Which of the following statements is false regarding the elasticity of demand?
With elastic demand, a five percent price reduction will result in a lower percentage increase in demand for an item
Human transport did not support the exchange of goods between or across major geographic regions. The range of human transport prior to the availability of mechanized transport was:
a 2.5 kilometer radius, or approximately 20 square kilometers
We define logistical distance as:
a complex representation that encompasses all the tasks required so that a movement between two locations can take place--includes physical flows, but also a set of activities necessary for the management of these flows.
Transportation contributed to the formation of the US as a result of:
alienation from Great Britan due to localized trade an transportation
The US requires a national transportation policy due to:
all of the above
The courts play a unique ad important role in the economic regulation of transportation. Which of the following describe the role(s) courts play?
all of the above
The term modal split refers to:
an analytical tool that divides the transportation market by modes of transportation.
Supply chain management can be characterized as:
an extended enterprise that permits the coordination of activities across the boundaries of multiple firms
The use of highway user charges continues to generate controversy. The controversy regarding the Federal Highway Trust Fund stems from:
most of the interstate system has been completed but user fees continue to be collected when additional urban sections may never be built.