Chapter 9 Cengage Questions

________________ are the most flexible mode of transportation and account for 70 percent of all the freight tonnage moved in the U.S. a. Air Carriers b. Rail Carriers c. Motor Carriers d. Water Carriers

c. Motor Carriers

A current warehouse system has five warehouses with 4,000 units at each warehouse. The company desires to change to three warehouses to become more centralized and keep the same customer service levels. Determine the average warehouse inventory levels, using the square root rule. (Choose the closest answer.) a. 15,492 b. 11,619 c. 6,667 d. 25,820

a. 15,492

Intermodal marketing companies (IMCs) are companies that act as intermediaries between intermodal a. Railroad companies b. Waste management companies c. Trucking companies d. Warehouse management companies

a. Railroad companies

Reverse logistics can have a positive impact on the environment through activities such as? a. Recycling b. Risk pooling c. Data warehousing d. Reneging

a. Recycling

Foreign-trade zones are: a. Secure sites within the U.S. where goods and materials can be assembled and exported without being levied domestic duties or excise taxes b. Markets in the U.S. where foreign countries set up and sell products c. Secure sites in foreign countries where goods wait for clearance by importing country d. Bodies of water where cargo ships are allowed to dock to deliver imported goods

a. Secure sites within the U.S. where goods and materials can be assembled and exported without being levied domestic duties or excise taxes

The responsibility of transportation is to create both time utility and place utility, which means that products will be delivered at the right time to the desired location. a. True b. False

a. True

Which of the following is a direct benefit from the adoption of NAFTA? a. An increase in manufacturing job opportunities in the U.S. b. An increase in trade between U.S., Canada, and Mexico c. A reduction in immigrants crossing the border from Mexico d. An increase in trade between U.S. and China

b. An increase in trade between U.S., Canada, and Mexico

Carry the majority of the world's water-transported manufactured goods. a. Supertankers b. Containerships c. Barges d. None of these choices are correct.

b. Containerships

For integrated supply chains, logistics is considered: a. Somewhat important b. Critically important c. Not at all important d. Important

b. Critically important

The acts of receiving shipments, breaking down shipments, repackaging shipments, and distributing components to a manufacturing location or finished products to customers by a distribution center is referred to as: a. Customs Brokering b. Crossdocking c. Piggy backing d. Risk pooling

b. Crossdocking

A primary advantage for motor carriers is the weather. a. True b. False

b. False

Creates the efficient flow of goods between supply chain partners, allowing profits and competitive advantage to be maximized. a. Transportation planning b. Logistics c. Procurement d. Operations

b. Logistics

A product positioned strategy: a. Places warehouses midway between the sources of supply and the customers b. Places warehouses close to the sources of supply c. Places warehouses close to customers d. None of these choices are correct.

b. Places warehouses close to the sources of supply

Returns management is also known as _______. a. Inverted logistics b. Reverse logistics c. Waste reduction d. Backward logistics

b. Reverse logistics

Which of the following marked the end of the initial push by Congress to deregulate the entire U.S. transportation industry? a. The Interstate Commerce Act of 2013 b. The Shipping Act of 1984 c. The Transportation Act of 1920 d. The Granger Laws

b. The Shipping Act of 1984

It is argued that transportation deregulation is good because: a. It ensures adequate transportation service throughout the country b. It protects consumers in terms of monopoly pricing c. It encourages competition d. All of these choices are correct.

c. It encourages competition

In the text, Table 9.1 shows that for-hire logistics expenditures in the U.S., have _____________ in the past thirty-one years. a. Remained the same b. Slowly declined c. More than quadrupled d. Decreased for the first 10 years, then increased

c. More than quadrupled

When mistakes occur in the supply chain, which of the following things might happen? a. Customer service levels drop b. Cost may increase due to expedited deliveries c. More safety stock must be held d. All of these choices are correct.

d. All of these choices are correct.

A ___________________ consolidates large numbers of small shipments to fill entire truck trailers or rail cars to achieve truckload or carload transportation rates. a. Consolidation forwarder b. Load broker c. Transportation broker d. Freight forwarder

d. Freight forwarder

What type of firm would be most interested in using a third-party logistics service? a. Large integrated global manufacturing company b. A freight forwarder c. A for-hire transportation company d. Small firm with no logistics expertise

d. Small firm with no logistics expertise