BUSML 3380 Topic 7: Transportation Managememt

three transportation challenges

(1) aging infrastructure (2) congestion (3) driver shortage

six steps to the multi-criteria analysis

(1) decide on criteria (2) set weights (3) define scoring system (4) evaluate options (5) calculate results (6) proactively monitor performance

four reasons to use multi-criteria analysis to pick the right carrier

(1) intuitiveness (2) quantifiability (3) applicability (4) disciplined

why people do not want to be truck drivers

(1) time away from home (2) irregular schedule (3) hard work

transportation management system (5)

(1) total network and lane design (2) mode and carrier selection (3) service negotiations (4) service evaluation (5) dock and mobile decisions

five modes of transportation

(1) trucking (2) rail (3) water (4) air (5) pipeline

three drivers that influence costs

(1) weight (2) distance (3) volume

Transportation costs are unique because they are u-shaped. True or False

True

title and risk of shipment (arrange transportation and ownership of goods)

FOB Origin: buyer FOB Destination: seller

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 it 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.

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

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%

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

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

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 & Freight e. Delivery Duty Paid

a. Ex Works

Ex Works vs Delivery Duty Paid

ex works: most of the responsibility and liability to buyer delivery duty paid: most of the responsibility to liability to seller

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. True or False

false

The United States faces unprecedented levels of unemployment among truck drivers. True or False

false

trucking transportation

fast, flexible, and reliable but high compared to rail operates on truckload carriers and less-than-truckload carries

laker ships, roll on roll off, tanker, bulk freighter

laker ships: coal, grains, gravel, sand roll on roll off: cars or construction equipment tanker: chemicals, oil, and gas bulk freighter: coal or grain

intermodal transportation

occurs when you combine transportation methods due to (1) necessity and (2) economics

rail transportation

preferred when shipping large volumes over long distances that cannot be reached by waterways // low cost but less rails and rights of way

payment of carrier

prepaid: seller collect: buyer

transit time

transportation's portion of order lead time

which mode of transportation is the largest?

trucking with about 80%

distance based costs

truckload and less than truckload: flat rate for short distances and price increases at a decreasing rate zone-based small package: charge in a stepwise fashion as distance increase conventional parcel: charges a flat rate regardless of distance

volume based costs

truckload costing: flat cost less than truckload costing: variable weight depending on how much your shipment weighs and start with a flat minimum

weight based costs

truckload costing: flat cost less than truckload costing: variable weight depending on how much your shipment weighs and start with a flat minimum

pipeline transportation

when moving fluid commodities like chemicals, gas, oil, and water // most reliable although slowest

air transportation

when you are shipping high value or perishable items long distances, when time and speed are critical // fastest mode of transportation but costly

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) InterLoad Share the Ship National Transportation Exchange

Collaborative Transportation Management (CTM)

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 False

True

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. Right transportation

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. The eyes of the customer

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. Truck

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. Unit train

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 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. Balancing the flow of freight between origin/destination locations.

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

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

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. Mode and Carrier Selection

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

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. Private carrier

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. To carry more freight arriving in the U.S. from an expanded Panama Canal.

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.

water transportation

best option when you ship large volumes to points that can be reached by water // cheapest cost by distance but poor accessibility and speed

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. Accuracy in documentation

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

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. Consumer electronics

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

c. The stowability of products

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

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. Water

ultimately pays transportation

charged back: buyer allowed: seller

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

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

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. LTL operations require several terminal locations for extensive coverage

Of all of the transport-related infrastructure, which of the following is in good shape in the U.S.? a. Roads b. Bridges c. Dams d. None are in very good shape e. All are in very good shape

d. None are in very good shape

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. Service Evaluation

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

What must one 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 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

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.

d. You run out of space in a transportation vehicle before you reach the weight limit.

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

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. Collaborative Transportation Management (CTM)

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 & Freight e. Delivery Duty Paid

e. Delivery Duty Paid

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 & Mobile Decisions

e. Dock & Mobile Decisions

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