Topic 7- Transportation
What is the term that applies to the holistic process that brings together shippers, carriers, and receivers to drive inefficiencies out of the transport planning and execution process? Nistevo Collaborative transportation management (CTM) Inter-load Share the ship National transportation exchange
Collaborative transportation management (CTM)
In logistics, processing deals primarily with which of the following? a. Flow of information and the visibility of shipments during movement and storage b. Processing payments quickly to improve cash flow c. Reducing waste d. Managing paperwork e. None of the above
a
Railroads require greater volumes of freight in order to be profitable because: a. Railroads must own and maintain their own rights of way, leading to very high fixed costs b. Railroads are far less fuel efficient than other modes and must charge a higher price c. Rail carriers are charged very high taxes compared to the other modes d. Railroads employ a larger labor force with high wages e. Since railroads usually only operate in one nation, they must carry more volume to be profitable
a
Value can only be assessed from the standpoint of . . .? a. The eyes of the customer b. Shareholder value c. A company's stock price d. None of the above
a
What is the term that refers to dedicated trains often of 100 or more railcars that move from an origin to a destination to serve a specific customer? a. Unit train b. Dedicated carriage c. Amtrak d. Intercity rail e. Longer combination vehicles
a
Which mode of transportation incurs medium fixed costs with high variable costs and is experiencing rapid growth though it still represents a very small market share as measured by total tonne miles within the U.S. transportation market? a. Air b. Truck c. Pipeline d. Railroad e. Water
a
Which of the following is NOT one of the seven rights of logistics? a. Right transportation b. Right place c. Right cost d. Right time e. All of the above are part of the seven rights
a
Which of the following transportation modes is characterized by the greatest (best) level of availability and flexibility in movement? a. Truck b. Pipeline c. Water d. Air e. Rail
a
__________ creates possession utility. a. Marketing b. Getting things where they are needed c. Logistics d. Supply chain management
a
Which of the following definitions applies to the concept of "weighing out?" a. You reach the maximum weight of a shipment before you fill the transportation vehicle b. You run out of pallets before the full order is staged for loading The transportation vehicle is too heavy for the tractor to pull it d. You run out of space in a transportation vehicle before you reach the weight limit e. The transportation vehicle cannot access the loading dock due to the obstruction of other vehicles in the dock area f. None of the above
a. You reach the maximum weight of a shipment before you fill the transportation vehicle
Which Incoterm places the most responsibility and liability for transportation with the buyer? a. Ex works b. Free alongside ship c. Free on board d. Cost and freight e. Delivery duty paid
a. ex works
The concept of continuous moves in trucking is meant to do which of the following? a. Move freight faster b. Make truck-driving jobs more attractive c. Trick regulators d. All of the above e. None of the above
b
Which combination of modes is not likely to be a frequently used intermodal option? a. Air-truck b. Air-water c. Rail-water d. Truck-rail e. Water-truck
b
Which decision supported by the TMS automates carrier selections? a. Total network and lane design b. Mode and carrier selection c. Service negotiations d. Service evaluation e. Dock and mobile decisions
b
Which form of carriage refers to a shipper that owns and operates its own fleet of transportation vehicles? a. Diversified carrier b. Private carrier c. Distinguished carrier e. Common carrier f. Exempt carrier
b
Which of the following is a primary challenge for air cargo carriers serving the U.S.? a. Competing with passenger airlines for qualified pilots. b. Balancing the flow of freight between origin/destination locations. c. Finding sufficient equipment at a reasonable price. d. Adhering to increasingly demanding economic regulations. e. Competing for landing slots at major international airports.
b
Why are railroad companies in the eastern U.S. expanding capacity dramatically? a. To keep up with growth in the road network . b. To carry more freight arriving in the U.S. from an expanded Panama Canal. c. To support freight arriving from the U.S. west coast. d. To accommodate the market demands for high-speed transportation. e. To provide for both freight and passenger transportation in the region.
b
What do you do after calculating results from your Multi-criteria analysis by multiplying the score for each criterion by the associated weight and adding up the results for all the criteria? a. You then have to subtract each of the modes together b. You can then begin to make decisions about which transportation carrier to use. c. You then need to identify the most critical criteria d. None of the above
b. You can then begin to make decisions about which transportation carrier to use.
Which transportation document serves as a receipt for a shipment? a. Proof of purchase b. Bill of Lading c. Customs declaration d. Shipping manifest e. Letter of credit
b. bill of lading
Which mode of transportation is the slowest, most difficult to access, and limited in terms of products it can carry, though it offers the most reliable service? a. Truck b. Pipeline c. Water d. Air e. Rail
b. pipeline
The concept of relay networks in trucking is meant to do which of the following? a. Move freight faster b. Make truck-driving jobs more attractive c. Trick regulators d. All of the above e. None of the above
b.. Make truck-driving jobs more attractive
What is believed to be the most important part of international transportation, according to many experts? a. Tracking the currency exchange rate b. Knowing customs personnel c. Accuracy in documentation d. Knowing the language of the destination country e. Hiring the right drayage company
c
When multiple (2 or 3) trailers are attached to a truck for more efficient transportation, this is called: a. Truckload (TL) transportation b. Unit trucking c. Longer-combination vehicles (LCVs) d. Multi-container shipping (MCS) e. Triple-E Trucking
c
When shipping by LTL carrier, which product is likely to have the highest freight classification? a. Wood furniture b. Paper c. Consumer electronics d. Bath towels e. Grocery items
c
Which mode faces intense competition from rail for dry bulk commodities and pipelines for oil and petroleum products? a. Motor b. Truck-rail intermodal c. Water d. Water-pipeline intermodal e. Air
c
Which mode of transportation is the slowest yet offers very reliable service? a. Air b. Truck c. Pipeline d. Railroad e. Water
c
A company that chooses to arrange for the transportation of products it buys from a supplier—and to pay for these services—would elect for which shipping terms? a. FOB-origin/prepaid b. FOB-destination c. FOB-origin/collect d. FOB-destination/collect e. FOB-origin/allowed
c. FOB-origin/collect
How good is a multi-criteria analysis? a. It is an average carrier selection tool b. It is a fool-proof analysis c. Only as good as the information you put in d. It actually is not a very good tool to use for carrier selection
c. Only as good as the information you put in
When setting up a Multi-criteria analysis, why would you use the scale from 1-100 to define your scoring system? a. It gives more granularity and variability in the overall scores b. You would be able to give points without skewing results c. Both a and b d. You wouldn't—it is always better to score from 1 - 10
c. both a and b
Which kind of transportation service provider provides convenient door-to-door service between two locations and is capable of carrying most any form of freight? a. Air carrier b. Pipeline carrier c. Truckload carrier d. Railroad carrier e. Less-than-truckload carrier
c. truckload carrier
How does a less-than-truckload (LTL) motor operation differ primarily from a truckload (TL) operation? a. LTL carriers only provide short-distance service. b. LTL carriers do not use full-size trailers like truckload operations. c. LTL carriers usually provide service without re-handling the freight. d. LTL operations require several terminal locations for extensive coverage. e. LTL operations require shippers to drop off their loads at the carrier's terminal.
d
Of all of the transport-related infrastructure, which of the following is in the best shape in the US? a. Roads b. Bridges c. Dams d. None are in very good shape e. All are in very good shape
d
Which decision supported by the TMS creates carrier compliance reports? a. Total network and lane design b. Mode and carrier selection c. Service negotiations d. Service evaluation e. Dock and mobile decisions
d
Which of the following statements is true about economies-of-scale experienced in transportation? a. Transportation cost increases but at a decreasing rate with each additional mile covered. b. Transportation cost increases but at a decreasing rate with each additional unit added to a shipment. c. Transportation cost increases but at a decreasing rate with each additional pound (unit of weight) added to a shipment. d. All of the above e. Only B and C
d
Among the five modes of transportation, roughly what percentage of domestic revenues does the trucking industry represent? a. 50% b. 60% c. 70% d. 80% e. 90%
d. 80%
Which shipping term applies to an arrangement where a seller arranges for transportation to a buyer and pays the carrier, but then invoices the buyer for the transportation fees? a. FOB-origin/prepaid b. FOB-destination/prepaid and allowed c. FOB-origin/collect d. FOB-destination/prepaid and charged back e. FOB-origin/allowed
d. FOB-destination/prepaid and charged back
What must you keep in mind when determining the optimal logistics network design? a. That the logistics network integrates inbound and outbound shipments to achieve the lowest transportation cost b. That information sharing can lead to a significant reduction in order errors c. That outbound transportation costs exceed inbound costs as the number of warehouse facilities increase d. That the logistics network demonstrating the least total cost is the one that considers the tradeoffs among warehousing, inventory, and transportation costs as well as the cost of poor service e. That all geographic areas served by a firm should report to a single executive officer
d. That the logistics network demonstrating the least total cost is the one that considers the tradeoffs among warehousing, inventory, and transportation costs as well as the cost of poor service
Which of the following definitions applies to the concept of "cubing out?" a. You reach the maximum weight of a shipment before completing an order b. You run out of pallets before the full order is staged for loading c. The transportation vehicle is too high to load without proper equipment d. You run out of space in a transportation vehicle before you reach the weight limit e. There is not enough space at the warehouse facility for a transportation vehicle f. None of the above
d. You run out of space in a transportation vehicle before you reach the weight limit
Which of the following was a result from the partnership between Pearl Jam and UPS in developing a more environmentally friendly way to move the band's equipment? a. Less pollution b. More efficient c. Switched from truck to rail d. All of the above e. None of the above; that is, Pearl Jam partnered with Fed Ex
d. all of the above
If you move a shipment from point A to point B, the subsequent movement from point B back to point A is most commonly referred to as the ____________? a. linehaul movement b. reciprocal movement c. flipside movement d. backhaul movement e. comeback movement
d. backhaul movement
Chapter 7 introduces several costs that influence the determination of the proper number of distribution locations a firm needs to serve its customer base. Which one of the following is an opportunity cost associated with that decision? a. Warehouse costs b. Inventory costs c. Transportation costs d. Cost of poor service e. Workers' compensation costs
d. cost of poor service
If you move a shipment from point A to point B, that outbound movement is referred to as the __________? a. linehaul movement b. original movement c. flipside movement d. fronthaul movement e. outward movement
d. fronthaul movement
Of all of the transport-related infrastructure in the US, which of the following is in good condition? a. Roads b. Bridges c. Dams d. None are in very good condition e. All are in very good condition
d. none are in very good condition
The lower per-mile costs enjoyed by transportation as a shipment covers greater distance is reflected in a concept referred to as the _____________? a. Pareto principle b. diminishing return concept c. Petrona principle d. tapering principle e. Veranzano principle
d. tapering principle
Which intermodal option combines truck and rail transportation with conventional road trailers carried atop rail flatcars for the long (line-haul) segment of the transit? a. Trailer Park b. Birdyback c. Container on Flatcar d. Trailer on Flatcar e. Container Shipping
d. trailer on flatcar
Moving more freight from trucks to rails will provide which of the following benefits: a. Faster delivery b. Reduced road congestion c. More environmentally sustainable transportation d. All of the above e. Only B and C
e
What is the term that applies to the holistic process that brings together shippers, carriers, and receivers to drive inefficiencies out of the transport planning and execution process? a. Nistevo b. National Transportation Exchange c. InterLoad d. Share the Ship e. Collaborative Transportation Management (CTM)
e
What share of overseas transportation occurs by ship, based on volume? a. Less than 10% b. 21 - 30% c. 50 - 60% d. 70 - 80% e. More than 90%
e
Which decision supported by the TMS processes orders and manages exception alerts? a. Total network and lane design b. Mode and carrier selection c. Service negotiations d. Service evaluations e. Dock and mobile decisions
e
Which of the following factors should be considered when choosing the mode, class, and carrier for a shipment? a. Service requirements of the customer b. The cost of the transportation service c. The characteristics of the product d. The transit time offered by the carrier e. All of the above
e
Which of the following is a reason you want to have multi-criteria analysis as a tool in your decision-making toolkit? a. Multi-criteria analysis is intuitive. b. Multi-criteria analysis enables you to quantitify qualitative issues. c. Multi-criteria analysis is widely applicable; that is, you can use it whenever decision-making requires comparing options. d. Multi-criteria analysis invites you to do disciplined homwork so that you make a good decision. e. All of the above f. Only A, B, and C
e
Which of the following items is a product-related transportation cost factor? a. The location of markets b. The level of transportation competition c. The stowability of products d. The balance of freight traffic e. Whether a shipment is domestic or international in destination
e
A transportation management system (TMS) can facilitate which of the following activities? a. Network analysis decisions b. Carrier performance evaluation c. Mode and carrier selection decisions d. Load planning and dock scheduling e. All of the above f. Only A and B
e. all of the above
Which initiative is likely to help in attracting and retaining drivers at a trucking company? a. Paying a higher wage b. Getting the driver home each day c. Hiring employees to load and unload trailers d. Equipping the trucks with the latest technologies e. All of the above
e. all of the above
Which of the following factors should be considered when choosing the mode, class, and carrier for a shipment? a. Service requirements of the customer b. The cost of the transportation service c. The characteristics of the product d. The transit time offered by the carrier e. All of the above
e. all of the above
Which Incoterm places the most responsibility and liability for transportation with the seller? a. Ex works b. Free alongside ship c. Free on board d. Cost and freight e. Delivery duty paid
e. delivery duty paid
Moving more freight from trucks to rails will provide which of the following benefits? a. Faster delivery b. Reduced road congestion c. More environmentally sustainable transportation d. All of the above e. Only B and C
e. only b and c
Reasons for using a multi-criteria analysis for selecting a carrier include: a. It is very quick and easy b. It is quantifiable c. It provides a disciplined approach d. All of the above e. Only b and c
e. only b and c
If you add a new distribution point, what other activities/costs will be affected? a. Transportation b. Inventory c. Warehousing d. Order process e. Customer service f. All of the above
f. all of the above
A fast, reliable mode of transportation will always provide the lowest total logistics cost.
false
Airlines operate as either all-cargo or all-passenger in orientation. In other words, cargo airlines never carry (paying) passengers and passenger airlines never carry cargo
false
All of the top five shipping ports in the U.S. are found on the nation's west coast to accommodate Trans-Pacific trade.
false
The U.S. railroad industry currently operates more miles of track than ever before.
false
The United States faces unprecedented levels of unemployment among truck drivers.
false
Which mode and class of transportation is most likely to be used for a 500-mile shipment of time-sensitive, fragile products weighing 20,000 pounds? Air Truck-rail intermodal Less-than-truckload truck Railroad Truckload truck
less-than-truckload truck
Most products will be transported by truck at some point in their distribution.
true
Multi-criteria analysis is an intuitive tool that helps you select the right carrier for transporting goods. One of the strengths of multi-criteria analysis is that it enables you to "quantify" qualitative decisions.
true
Multi-criteria analysis is an intuitive tool that helps you select the right carrier for transporting goods. One of the weaknesses of multi-criteria analysis is that you "quantify" qualitative decisions.
true
Transportation costs are unique because they are u-shaped.
true
Variability in transit times can be a major contributor to variation in order lead times.
true
Which transportation mode typically carries bulk food, mining, and chemicals? This mode also rates highest in the capacity/capability category with its ability to carry the largest variety of goods and materials in massive quantities. Truck Pipeline Water Air Rail
water