SCM 410 Exam 2
Suppose that there is a rate of $75 per hundredweight and you have a 600 pound shipment. What is the correct transportation charge for this shipment?
$450
Truckload carriers focus on shipments of greater than ____ pounds.
10,000
Turnover rates for expatriate workers current run between ____ percent.
20, 40
How many factors are used to determine a product's freight classification?
4
U.S. freight railroads currently allow ____ hours of free time for unloading railcars and ____hours of free time for loading railcars.
48, 24
A general rule of thumb is that the services received represent only about ____ percent of the taxes paid.
50
The Worker Adjustment and Retraining Notification (WARN) Act mandates that employers give ____ days' notice about plant closings and mass layoffs
60
True or False: The class rate system simplifies with respect to the three primary factors --- density, product and distance
False
True or False: The five most populous states in the United States were the same in 1980 and 2010.
False
True or False: There has been a decrease in maquiladoras in recent years
False
True or False: Weight is one of the four factors used to determine a product's freight classification.
False
True or False: With respect to commodity flows, logisticians are especially interested in what is being produced and where it is being produced.
False
rue or False: Diversion occurs after a shipment has arrived in its destination
False
What two countries account for approximately one-third of the world's population?
India & China
____ transportation occurs when two or more modes work closely together in an attempt to utilize the advantages of each mode while at the same time minimizing their disadvantages.
Intermodal
The European Union's expansion into Central and Eastern European countries has resulted in the Czech Republic and ____ becoming favored distribution sites because of their relatively central location.
Poland
Demurrage charges are collected by which two modes of transportation?
Rail; water
___ can be defined as the process of determining how a shipment will be moved between consider and consignee or between place of acceptance by the carrier and place of delivery to the consignee.
Routing
____ allows bulk commodities to become liquefiable by grinding the solid material to a certain particle size, mixing it with liquid, transporting it and then decanting the liquid.
Slurry systems
___ refers to how easy a commodity is to pack into a load
Stowability
With respect to U.S. economic regulation, the ____ has primary responsibility for resolving railroad rate and service disputes, reviewing potential rail mergers, and some jurisdiction over motor carriers, domestic water transportation, and pipelines.
Surface Transportation Board (STB)
Rail gauge refers to ____.
The distance between the inner sides of two parallel rail tracks
True or False: A transportation charge (the cost of transportation) can be calculated by multiplying the weight times the rate.
True
True or False: Centralized facilities tend to minimize total transit distances, which likely results in minimum transportation costs.
True
True or False: Concealed loss or damage claims are some of the most difficult for shippers and carriers to handle.
True
True or False: Density is one of the four factors used to determine a product's freight classification
True
True or False: Expedited shipment by motor carriage can sometimes provide faster and more reliable service than expedited shipping involving air transportation.
True
True or False: Facility relocation is associated with business growth, while facility closing is associated with business contraction.
True
True or False: Freight bill audits are designed to detect errors that result in overcharges and to correct these errors in the future.
True
True or False: Grid systems are important to locational analysis because they allow one to analyze spatial relationships with relatively simple mathematical tools.
True
True or False: Inventory taxes have become increasingly difficult to collect in part because of a lack of agreement as to what is meant by inventory.
True
True or False: Labor wage rates appear to be a key locational determinant as supply chains become more global in nature.
True
True or False: Maquiladora plants have experienced a resurgence in recent years because of a focus on manufactured products that depend on fast time to market.
True
True or False: Over the past quarter century, discussion of natural resources and facility location has increasingly factored in environmental and sustainability considerations.
True
True or False: Population can be viewed as both a market for goods and a potential source of labor.
True
True or False: Right-to-work laws mean that every person who wants a job is guaranteed a job.
True
True or False: Stowability refers to how easy a commodity is to pack into a load
True
True or False: Supplier parks refer to places where main component makers locate in specially created industrial complexes adjacent to assembly plants.
True
True or False: Sweatshops are organizations that exploit workers and that do not comply with fiscal and legal obligations towards employees.
True
True or False: The idea behind a weighted center-of-gravity approach is that a prospective warehousing facility will be located closer to the existing sites with the greatest current demand.
True
True or False: The most important single transportation document is the bill of lading
True
True or False: Tracing refers to determining a shipment's location during the course of its move.
True
Inland waterways in the United States are dredged to a depth of ____ feet, which tends to be the minimum depth required for most barges.
9
Freight forwarders are the same thing as freight brokers.
False
Rail gauge refers to the thickness of rail track.
False
Small shipments refer to those that can be handled relatively expeditiously and inexpensively by either the postal system or UPS.
False
The main benefit of shippers' associations is one-stop shopping.
False
True or False: A detention is similar to demurrage, except that detention applies to pipeline
False
True or False: A locavore strategy focuses on hiring local workers.
False
True or False: A poor facility location can increase transportation costs, but has minimal impact on customer service.
False
True or False: A pure material is one that is totally water soluble
False
True or False: A truckload shipment always involves one customer
False
True or False: An expatriate is a person who holds dual citizenship.
False
True or False: An expatriate is a person who is not allowed to work outside his (her) home country.
False
True or False: Communication with employees is more important for facility closings than for facility relocations.
False
True or False: Density is one of the three primary factors for transportation rates
False
True or False: Fewer than 500 motor carriers currently use the freight classification system.
False
True or False: Free trade zones must be adjacent to a port or an airport.
False
True or False: Intermodal competition refers to the number of carriers within a particular mode of transportation.
False
True or False: Over the past quarter century, discussion of natural resources and facility location has increasingly factored in supply chain considerations.
False
True or False: Poor ventilation is a key shortcoming of the sweatshops associated with the electronics industry
False
True or False: Poorly located facilities do not impact logistical effectiveness
False
True or False: Poorly located facilities, such as manufacturing plants and warehouses, negatively impact logistical effectiveness, but have little impact on logistical efficiency.
False
True or False: Population size is an irrelevant consideration in the facility location decision.
False
True or False: Shippers or carriers are entitles to a product's full retail value when filing a freight claim
False
True or False: The European Union's expansion into Central and Eastern European countries has seen Hungary become a favored distribution site because of its relatively central geographic location.
False
True or False: The U.S. federal government has been regulating the transportation of hazardous materials since the mid-1970's.
False
True or False: The United States has the highest hourly compensation rates in the world.
False
True or False: The Worker Adjustment and Retraining Notification (WARN) Act mandates that employers give 90 days' notice about plant closings and mass layoffs.
False
True or False: The bill of lading is an invoice, submitted by the carrier, requesting to be paid.
False
True or False: The bill of landing adds complexity to the transportation managers job
False
An invoice submitted by the carrier requesting to be paid is ___.
a freight bill
An invoice submitted by the carrier requesting to be paid is ____.
a freight bill
A brownfield is ____.
a property for which use and redevelopment is complicated by past use
Each of the following is a type of bill of lading, except: a.) long b.) straight c.) short d.) order e.) all are a type
e.) all are a type
Over the past quarter century, discussion of natural resources and facility location has increasingly factored in ____ considerations.
environmental
The primary advantage for motor carriers is ____.
flexibility
Common carriers of transportation have ____ obligations.
four
Shippers' associations ____.
function in a manner similar to freight forwarders
The existence of transportation competition, whether intermodal or intramodal, tends to ____.
have both cost and service benefits to a user
If a product destroyed or damaged in transit is intended to be placed into general replacement inventory, then the retailer would likely receive ____.
he wholesale price, plus freight if previously paid
With respect to commodity flows, logisticians are especially interested in ____ and ____.
how much is being produced where it is being shipped
In the class rate system, freight rates are expressed in dollars or cents per ____.
hundredweight
A free trade zone refers to an area ____.
in which products can be stored, exhibited, or processed without being subjected to duties and quotas unless they enter the customs territory of the zone country
From a business perspective, ____ taxes are analogous to the personal property taxes paid by individuals.
inventory
A pure material ____.
is one that loses no weight in manufacturing
An expatriate refers to a person who ____.
is sent to work in other countries for extended periods of time
Tracing refers to:
locating lost or delayed shipments
A transportation broker _____.
looks to match a shipper's freight with a carrier to transport it
With respect to a commodity's freight classification, shippers tend to prefer a ____ classification number and carriers tend to prefer a ____ classification number.
lower, higher
___ plants, which are located just south of the U.S.-Mexican border, provide much needed jobs to Mexican workers and allow for low-cost, duty-free production so long as all goods are exported from Mexico.
maquiladora
What is the time limitation within which a freight claim must be filed?
nine months from delivery date
Less-than-truckload motor carriers ____.
operate through a series of terminals
Firms that specialize in carrying packages that weigh up to 150 pounds are called ____.
parcel carriers
The predominant commodity moved by barge transportation is ____.
petroleum
____ is the most reliable form of transportation.
pipeline
Which mode is not the "best" or "worst" on any of the six attributes (e.g., capability, flexibility, etc.) that were used to compare the modes?
railroads
___ have a level of market concentration and dominance that is not found in the other modes.
railroads
In the United States, ____ account for the largest share of ton-miles and ____ account for the majority of freight revenues.
railroads; truck
____ signifies the price charged for freight transportation.
rate
Consignees are ____.
receivers of freight
___ occurs when a shipment's destination is changed after it has arrived in the destination city.
reconsignment
The general trend in recent years has been for companies to do what with their distribution networks?
reduce the number of facilities
The primary advantage to land bridge service is ____.
reduced transit times
A locavore strategy ____.
refers to purchasing locally grown or produced foods
The initial focus in facility location is on a ____.
region
A ___ provides guidance in terms of a preferred list of carriers for shipments moving between two points.
routing guid
Hours-of-service (HOS) rules and speed limits have long been justified in the motor carrier industry on the basis of ____.
safety concerns
The processing point for a weight-losing raw material ____.
should be near its source
The processing point for a weight-gaining raw material ____.
should be near the final market
With FOB destination, freight prepaid ____.
the seller pays the freight charges and owns the goods in transit
How does the weighted center-of-gravity approach to location analysis differ from the center-of-gravity approach to location analysis?
the weighted approach considers shipment volume
If a product destroyed or damaged in transit is intended to be placed into general replacement inventory, then the retailer would likely receive:
the wholesale price, plus freight if previously paid
Weight times rate equals ____.
transportation cost
__ pipelines carry crude oil from gathering-line concentration points to the oil refineries.
trunk
Labor force ____ are a key locational determinant as supply chains become more global in nature.
wage rates
Demurrage charges are collected by railroads, ____, and ____.
water carriers, pipelines
Small shipments are defined as those that ____.
weigh more than 150 pounds but less than 500 pounds
Small shipments are defined as those that
weight more than 150 pounds but less than 500
An order bill of lading is used ____.
when a shipment is started before the buyer is known
Which of the following is not one of the primary factors that transportation rates are based upon? A.) Product B.) Density C.) Weight D.) distance
B. Density
A(n) ____ rate simplifies each of the three primary rate factors - product, weight, and distance.
Class
The U.S. ____ is the federal government body with primary responsibility for transportation safety regulation.
Department of Transportation (DOT)
___ occurs when a shipper notifies a carrier, prior to a shipment's arrival in a destination city, of a change in destination.
Diversion
____ trucking tends to have the highest cost per hundred weight.
Expedited
___ refers to rapidly moving a shipment through a carriers system.
Expediting
____ is the most popular location for near-sourcing among companies that do business in North America.
Mexico
In 2010, the three most populous U.S. states were located in the West, Southwest, and ____.
Northeast
___ is the attempt to locate lost or late shipments.
Tracing
In general terms, ____ accounts for about 6% of U.S. gross domestic product.
Transportation
___________ is the actual, physical movement of goods and people between two points.
Transportation
____ refers to the buying and controlling of transportation services by either a shipper or consignee.
Transportation management
Private transportation is most prevalent in the ____ industry.
Trucking
A commodity rate is very good for dealing with demand-specific situations.
True
Liability for loss and damage is one factor used to determine a product's freight classification. Which of the following is not a loss and damage consideration?
ability to load freight on top of a commodity
____ refers to the net advantages that can be gained by a sharing of common locations by various enterprises.
agglomeration
Which of the following is not a factor used to determine a product's classification? a.) density b.) liability to damage and theft c.) stowability d.) ease of handling e.) all are factors
all are factors
A(n) ____ refers to a transportation manager who purchases a prespecified level of transportation service and is indifferent to the mode and carrier used to provide the transportation service.
amodal shipper
Right-to-work laws refer to a situation where ____.
an individual cannot be compelled to join a union as a condition of employment
Supplier parks are a concept that developed around ____ and their suppliers in Europe.
automakers
The most important single transportation document is the:
bill of lading
The processing point for a pure material ____.
can be anywhere near the source and the market
A(n) ____ rate simplifies each of the three primary rate factors—product, weight, and distance.
class
A(n) ____ rate refers to a specific rate for every possible combination of product, weight, and distance.
commodity
Dimensional weight ____.
considers a shipment's density
Freight forwarders
consolidate the shipments of several shippers
Freight forwarders ____.
consolidate the shipments of several shippers
____ refers to how heavy a product is in relation to its size.
density
The center-of-gravity approach to location analysis minimizes ____.
distance to existing facilities
