final exam 1

which of the following best describes the majority of freight that moves via rail? a. manufactured goods b. farm products c. petroleum products d. low value, heavy commodities in bulk e. consumer goods

d. low value, heavy commodities in bulk

1. The cost per hundredweight ($/cwt) for ltl shipments is typically higher on high density itmes than it is for low density items true false

false

The bullwhip effect refers to the phenomenon of increasing or amplified variation in demand as we move downstream, toward the point of consumption true false

false

Total logistics costs are a percent of gdp have remained fairly consistent over the past 25 years at about 8-9% true false

false

Truckload carriers have low variable costs and high fixed costs true false

false

labor and insurance are two largest components of variable cost for motor carriers true false

false

tolls are a good example of existence charges in the states that allow their use. true false

false

1. A "per se" violation is a type of anti trust violation that is illegal, regardless if any economic harm is done to competitors or other parties. true false

true

Cabotage laws require the intracostal and intercostal traffic inthe US be carried in US built and registered ships true false

true

Considering the price elasticity of transportation, the competitive impact of a price increase for a specific transportation company can be very significant true false

true

the two primary reasons we need a national transportation policy are national defense and economic development true false

true

truck transportation accounts for approximately two thirds of the total logistics spend in the US true false

true

1. The term "landed cost" refers to: A. the cost for cargo carrying airplanes to land and unload at commercial airports B. The list price of an item from a manufacturer C. the cost of the product at the sources plus all related costs to transport it to the destination D. The cost of unload freight onto a receiving dock

C. the cost of the product at the sources plus all related costs to transport it to the destination

Transportation creates which type(s) of utility a. time b. place c. form d. a and b e. all of the above

D. a and b

Which of the following established the interstate commerce commission a. act to regulate commerce-1887 b. interstate commerce act of 1910 c. Granger laws -1867 d. transportation act of 1920 e. Sherman Anti-trust act of 1890

a. act to regulate commerce-1887

the overall demand for transportation is described as "inelastic", which means: a. increases in freight rates have little effect on demand b. reductions in freight rates have a large effect on demand c. demand for transportation does not change much over time d. transportation has a hard time "stretching" to cover demand

a. increases in freight rates have little effect on demand

Which of the following is not considered to be one of the value of service characteristics for transportation a. insurance rate b. transit time c. reliability

a. insurance rate

when transportation cost is reduced by 1/2, the relevant market area for a company is quadrupled. this is referred to as: a. law of relevant markets b. Lardner's law c. the cabotage rule

b. Lardner's law

According to your instructor,reliability in transportation is defined as: a. the ability to get the freight from a specific origin to a destination b. consistency of transit time c. fast transit times d. the ability to move specific types of freight e. the ability to keep freight safe

b. consistency of transit time

ABC trucking has a shipper wanting to move widgets from houston, tx to fayetteville ar. abc's equipment weights 34,000 lbs. the trailer dimmensions are 53 ft long 8 ft wide and 8 ft high. the widgets weigh 12 lbs per cubic ft. which constraints will the shipper hit first- available cubic space or weight capacity? a. weight b. cube c. the trailer will weigh out and cube out simultaneously d. there is not enough information to answer this question

b. cube

Many large companies have improved logistics management by simply dividing transportation management responsibilities for inbound and outbound flows into separate organizations a. true b. false

b. false

Since the economic deregulation of most modes, safety regulations a. have remained essentially unchanged b. have received greater attention from the government c. have been relaxed to further increase competition

b. have received greater attention from the government

1. About what percentage of railroad revenues are earned by the 7 class 1 railorads? a. less than 70% b. more than 90% c. all railraods are class 1

b. more than 90%

which sentence best describes the current regulation of transportation in the US? a. the federal government controls all aspects of interstate transportation b. the federal government has removed most economic control, but continues to strongly regulate safety c. all major modes of transportation have been fully deregulated d. the airlines industry is free of all regulation, but the railroads are still closely regulated e. water is the only mode that has been fully deregulated

b. the federal government has removed most economic control, but continues to strongly regulate safety

stem time refers to: a. the time it takes a driver to get from 1st pickup pt to the consolidation terminal b. the time it takes a driver from the last stop to get back to the terminal c. non of the above

b. the time it takes a driver from the last stop to get back to the terminal

Which is best example of a service characteristic of the trucking industry? a. trucks are build to fit on existing highways b. trucks have a speed advantage for shipment less than 500 miles c. truck rates are cheaper than rail cars d. trucks are easier to load than rail cars e. trucks are the most reliable mode of transportation

b. trucks have a speed advantage for shipment less than 500 miles

a transportation shipment of 75 tones for 125 miles would be: a. 125 ton-miles b.9375 ton-miles c. 6250 ton-miles

b.9375 ton-miles

abc trucking had operating expenses of $7 million in 2013 and transportation related revenue of $7.5 million in 2013 and transportation related revenue of $7.5 million. They also reported a profit of $500,000 for the sale of property they had purchases 4 yrs ago. the operating ration for abc trucking in 2013 was: a. 88 b. 90 c. 93 d. 108 d. cannot be determined from data provided

c. 93

railroad per unit costs declines as traffic increases giving the mode an opportunity to realize economic of scale. what is the reason for this cost behavior? a. a high proportion of variable costs in the cost structure b. a low proportion of fixed costs in the cost structure c. a large proportion of fixed costs in the cost structure d. longer length of haul e. the rapid expansion of intermodal traffic

c. a large proportion of fixed costs in the cost structure

Which of the following best describes a private motor carrier? a. a trucking firm whose stock is not listed on any of the stock exchanges b. a tucking firm whose name does not appear on the equipment c. a trucking operation that primarily provides transportation service to the firm that owns or lease the vehicles d. an individual who provides limo services for a company e. a trucking firm that is not registered with the FMCSA

c. a trucking operation that primarily provides transportation service to the firm that owns or lease the vehicles

The US legal system relies upon principles or rules of law that were developed from previous court decisions. This system is referred to as: a. statutory law b. judicial memory c. common law d. government controlled e. common market

c. common law

in rail, the term abandonment refers to: a. leaving cars at loading or unloading sites b. management's tendency to disregard the needs of their employees c. discontinuing service on tracks that are not longer profitable sources of revenue

c. discontinuing service on tracks that are not longer profitable sources of revenue

the government can force individuals to sell their property if it is needed for a transportation project or other public use. This is called: a. confiscation b. repossession c. eminent domain d. public right of way e. political power

c. eminent domain

Funding for highways comes mostly from which of the following? a. individual income taxes b. tolls c. highway user taxes d. state income taxes e. corporate income taxes

c. highway user taxes

What was the primary purpose of the legislation which created Amtrak? a. the time it takes a driver to get from the first pick-up point the consolidation terminal b. an abbreviated carrier term for " total system time" c. it relieved existing railroads form the responsibility of providing passenger service

c. it relieved existing railroads form the responsibility of providing passenger service

railroads carloading have declined since 1900. which of the following is the primary reason for the decline? a. competition by foregin transportation comapnies b. reduction in railroad trackage c. larger cars and increasing car productivity d. more powerful locomotives

c. larger cars and increasing car productivity

The Reed Bullwinkle act of 1948 did which of the following? a. existed the regulatory authority of the ICC to include motor transportation b. prohibited predatory pricing in transportation c. made it legal for both railroads and trucking companies to collectively set prices

c. made it legal for both railroads and trucking companies to collectively set prices

Which of the following was not given as a period of regulation? a. the initiation era b. the positive era c. the competitive era d. the intermodal era e. the new economic era

c. the competitive era

The best definition of the term "right of way" is: a. the first carrier given authority by the interstate commerce commission to handle a particular shipment over a specified route b. a train's right to cross the highway regardless of the traffic flow c. what a carrier's equipment uses to provide the movement of freight

c. what a carrier's equipment uses to provide the movement of freight

because the demand for transportation depends on the existence of demand for other goods at a particular place, it is called: a. dependent demand b. secondary demand c. hidden demand d. derived demand e. consumption demand

d. derived demand

supply chain management consists of 3 key flows a. product, equipment and information b. information, cash and equipment d. product, cash and information

d. product, cash and information

which of the following best describes the public promotion that is received by domestic water carriers? a. research that has recently led to bigger and more powerful tugboats b. safety provisions issued by the federal maritime commission c. subsidies to companies that locate on rivers in order to use barges d. the work done by the corp of engineers and the Coast Guard e. providing ice breakers on the northern part of the Mississippi river

d. the work done by the corp of engineers and the Coast Guard

one of the major competitive advantages that rail has over truckload carriers is a. fuel efficiency b. lower labor rates as a percent of total cost c. higher economies of scale as volume increases d. more consistent transit times e. a and c are both correct

e. a and c are both correct

Since the staggers act a. freight rates have gone down b. safety levels have improved c. customer service has improved d. intermodal traffic has more than doubled e. all of the above are true

e. all of the above are true