MKT 367 Ch 9

Organizations operating under a just-in-time system, prefer to ship by:

truck.

Radio frequency (RF) waves are a mode of transportation for information and carriers for RF waves are air, copper wire and fiberoptic cable.

T

Supply's role in logistics may include direct functional responsibility and acquisition of logistics services.

T

The bill of lading is the key document in the movement of goods.

T

Telecommunication routes are:

practically unlimited because of few land or sea restraints to laying cable.

With deregulation of the transportation industry and the development of intermodal service, the focus for the transport buyer is:

the carrier's ability to handle multiple parts of the logistics process.

Logistics is the management of inventory in motion and at rest.

T

Two effective cost reduction strategies are partnering agreements with logistics services provider and long-term contracts.

T

Integrated carriers (truck-air) like UPS and Federal Express are able to capture a larger market share because they: a. utilize their own aircraft. b. have extensive ground networks. c. have accurate, real-time tracking systems. d. b and c. e. a, b and c.

e. a, b and c.

Transportation costs decrease as distance, quantity, and speed increase.

F

A mode of transportation is any means of conveyance of people or property, but not information.

F

Economic, safety and environmental regulations have been eliminated for the most part for all modes of transportation.

F

Logistics costs can be divided into three categories—inventory carrying costs, administrative costs, and transportation—with inventory carrying costs accounting for the bulk of the costs.

F

Third-party logistics service providers are carriers that always own assets (trucks, airplanes, railcars) and act as intermediaries between trading partners, for example, shippers and carriers.

F

A transportation strategy should include consideration of: a. safety on the ground, in the air and on water. b. environmental factors such pollution. c. consolidation of freight. d. alternative transport modes. e. all of the above.

all of the above

Decreasing logistics costs may be attributed to: a. deregulation of the transportation sector. b. technology advances and e-commerce. c. an increase in global supply chains. d. a and b e. b, and c.

e. b, and c.

Demurrage charges:

may indicate poor delivery scheduling on the part of the buying organization.

The selection of the FOB point is important to the purchaser, for it determines: a. who pays the carrier. b. when legal title to goods being shipped passes to the buyer. c. who is responsible for preparing and pursuing loss or damage claims. d. who routes the freight. e. all of the above.

all of the above

Fuel efficiency and energy consumption considerations:

are a factor in transportation strategy development in many organizations.

Transportation rates:

are established primarily through negotiation.