SCMN 3720 Exam 1 (Quiz Questions)
Approximately 10% of the freight ton-mile traffic in the U.S. is carried by air.
FALSE
Europe is the continent that will have the largest number of megacities by 2015.
FALSE
In 2015, there were 667 fatalities from railroad carriers, airlines, and water cargo transporters combined while large truck and bus crashes resulted in fewer than 300 fatalities.
FALSE
Increasing the deductible on an insurance policy is a risk avoidance strategy.
FALSE
Maersk Lines is teaming with Microsoft to use Blockchain technology in ocean shipping.
FALSE
Reliability is the transportation service characteristic defined as the trustworthiness of the carrier.
FALSE
Reverse logistics systems are developed for receiving payment from customers.
FALSE
The United States has the largest export trade flow in the world.
FALSE
The demand for transportation is considered an Independent Demand.
FALSE
The primary reason for the creation of the U.S. interstate roadway system was to promote commerce.
FALSE
The simplest way to eliminate risk is risk reduction.
FALSE
The supply chain management concept captured the attention of senior level executives in many organizations starting in the 1970's.
FALSE
The two parameters involved in risk assessment are cost and impact.
FALSE
The use of ELDs in trucking was mandated by the U.S. Congress effective December 2016.
FALSE
Truck platooning is an autonomous concept that does not use human drivers.
FALSE
Under pure competition, there are many sellers and the product is heterogeneous.
FALSE
Using the least cost service provider is a transportation risk reduction strategy.
FALSE
Various studies indicate that the use of a TMS helps an organization reduce freight costs by 12 to 20%.
FALSE
A skimming price is a high price intended to attract a market that is insensitive to price, and it is a means to maximize profit.
TRUE
A transportation shipment of 75 tons for 125 miles would be 9375 ton-miles.
TRUE
According to a Zurich Insurance LTD study, nearly 14% of supply chain disruptions around the world have a financial cost in excess of $1.1 million.
TRUE
Aggregate transportation expenditures are about 9% of GDP in the U.S.
TRUE
Air transportation has more passenger-miles than railroads and bus services combined.
TRUE
In 2030, it is estimated that 60% of the world's population that will live in urban areas.
TRUE
In value of service pricing, prices should be related to value of the commodity-- the higher the value of the commodity the higher the price to transport it should be.
TRUE
It is possible to achieve a 12 to 18 month ROI on a TMS investment.
TRUE
MercuryGate Fleet is a TMS that supports asset-based carriers.
TRUE
Not putting all your "eggs in one basket" is a hedging strategy.
TRUE
The 3 major flows in a supply chain are products, information, and money.
TRUE
The first successful airplane flight occurred in 1903.
TRUE
The main objective of deregulation in transportation was to create market-driven pricing of transportation services free from regulatory intervention.
TRUE
The risk of labor disruptions and strikes is in the Supply Chain Interruption risk category.
TRUE
The risk of temperature control failure in a refrigerated trailer is in the Product Contamination risk category.
TRUE
The top importing country in the world is the United States.
TRUE
The use of aerodynamic devices and low rolling resistance tires can result in a net fuel savings of 10% or more.
TRUE
Third degree price discrimination is defined as charging different prices to different buyers who use the same commodity or service.
TRUE
Under transportation regulation, the amount found in a Tariff as payment to a carrier for performing a given transport service is called a rate.
TRUE
While there are many sellers in monopolistic competition, there is some differentiation in the product.
TRUE