Logistics Ch. 7 Quiz

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

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

The U.S. railroad industry currently operates more miles of track than ever before. TrueFalse

False

Transportation costs are unique because they are u-shaped. TrueFalse

True

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 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

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 ( b. Reduced road congestion c. More environmentally sustainable transportation )

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 ( b. It is quantifiable c. It provides a disciplined approach )

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

The United States faces unprecedented levels of unemployment among truck drivers. TrueFalse

False

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 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 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

a. Transportation cost increases but at a decreasing rate with each additional mile covered

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

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 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 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. Make truck-driving jobs more attractive

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 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

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.

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 ( a. It gives more granularity and variability in the overall scores. b. You would be able to give points without skewing results. )

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

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

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 of the following was a result from the partnership bewteen 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

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

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

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. 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 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? Nistevo Collaborative Transportation Management (CTM) InterLoad Share the Ship National Transportation Exchange

Collaborative Transportation Management (CTM)

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 tonne miles within the U.S. transportation market? a. Air b. Truck c. Pipeline d. Railroad e. Water

a. Air

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.

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

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.

__________ creates possession utility. a. Marketing b. Getting things where they are needed c. Logistics d. Supply chain management

a. Marketing