Chapter 14 SUPPLY CHAIN
Which of these statements about use fees for a highway is best?
A flat rate results in higher use by most individuals.
Which mode of transportation is the most expensive?
Air
Which of the following is the fastest delivery method of transportation?
Air
________ carriers offer a very fast and fairly expensive mode of transportation for cargo.
Air
Which transportation network design option establishes an extra layer between suppliers and retailers to store inventory and to serve as a transfer location?
All shipments via central DC
Ocean Carriers form --- to cooperate on capacity by lane. These carriers will put in one vessel each. There will be a string of ships from different carriers.
Alliances
When you move any goods, it comes with a--
Bill of Lading: whoever has the bill, owns the goods; it tells what type of goods and who transports
Which transportation network design option has the elimination of intermediate warehouses
Direct shipping network
T/F A carrier uses transportation to minimize the total cost (transportation, inventory, information, and facility) while providing an appropriate level of responsiveness to the customer.
F
T/F A carrier's decisions are affected by the prices that the market will bear, but not the responsiveness it seeks to provide its target segment.
F
T/F A dabba uses the Mumbai railway system to carry about 40 lunches each day.
F
T/F A distributor makes investment decisions regarding the transportation infrastructure and then makes operating decisions to try to maximize the return from these assets.
F
T/F A firm can meet customer needs by using tailored transportation to provide the appropriate transportation choice based on customer and product characteristics, but at a higher cost.
F
T/F Firms can significantly reduce the safety inventory they require by physically aggregating inventories in one location, which will also decrease transportation cost.
F
T/F Milk runs reduce outbound transportation costs by consolidating large shipments.
F
T/F Rail is the dominant mode of freight transportation in the United States and accounts for over 75 percent of the nation's freight bill.
F
T/F The mode of transportation that results in the lowest transportation cost will lower total costs for a supply chain.
F
T/F Transportation plays a key role in every supply chain because products are usually produced and consumed in the same location.
F
Top Cargo Air Lines
FedEx, UPS, Emirates, etc
The first container ship was ---, which shipped --- containers
Ideal X; 58
UPS world port is in ---
Louisville, KY
What does a Freight Forwarder do?
Mediates imports and exports, and consolidates cargo from different shippers.
________ are the preferred mode of transport for online businesses such as Amazon.com and Dell, as well as for companies such as W.W. Grainger and McMaster-Carr that send small packages to customers.
Package carriers
Which mode of transportation is used primarily for petroleum and natural gas?
Pipeline
________ typically move commodities over large distances at lower costs per unit shipped.
Rail
T/F A milk run is a route in which a truck either delivers product from a single supplier to multiple retailers or goes from multiple suppliers to a single retailer.
T
T/F Ignoring inventory costs when making transportation decisions can result in choices that worsen the performance of a supply chain.
T
T/F Quasi-market prices for transportation infrastructure result in higher prices at peak locations and times and lower prices otherwise.
T
T/F Tailored transportation is the use of different transportation networks and modes based on customer and product characteristics.
T
T/F Temporal aggregation decreases a firm's responsiveness because of shipping delay but also decreases transportation costs because of economies of scale that result from larger shipments.
T
T/F The most important operational decision related to transportation in a supply chain is the routing and scheduling of deliveries.
T
T/F The use of software to determine transportation routes has been the most common IT application in transportation.
T
T/F The vehicle-related cost is incurred whether the vehicle is operating or not and is considered fixed for short-term operational decisions by the carrier.
T
T/F Transportation cost depends on the prices offered by different carriers and the extent to which the shipper uses inexpensive and slow, or expensive and fast, means of transportation.
T
T/F Transportation is a significant component of the costs incurred by most supply chains.
T
You negotiate in --- even thought the most popular type of container is --- ft long.
TEUs; 40 ft long
Which transportation network design option uses a combination of other options to reduce the cost and improve responsiveness of the supply chain?
Tailored network
Which of the following uses transportation to minimize the total cost (transportation, inventory, information, and facility) while providing an appropriate level of responsiveness to the customer?
The shipper
In almost all countries, roads, seaports, airports, rail and canals have this in common.
They were built and/or managed by the govt.
The movement of product from one location to another as it makes its way from the beginning of a supply chain to the customer's hands is referred to as
Transportation
These container ships built in 2013 for Maersk Line are the world's largest ships
Triple E class container ships
Which mode of transportation is the dominant form of freight transportation?
Truck
Which mode of transportation is the least expensive?
Water
Serving a high density of customers at a long distance is best done using
a cross dock distribution center with milk runs.
At a train station where lines intersect, the Mumbai dabbawalas perform
a cross-dock function.
Serving a low density of customers at a long distance is best done using
a package carrier
Serving a high density of customers at a short distance is best done using
a private fleet with milk runs
Serving a medium density of customers at a medium distance is best done using
an LTL carrier
Triple E class containers are typically in trade lanes in-
back and forth between Europe and Asia because it is too large for US ports
The Mumbai dabbawalas perform
both a forward and a reverse logistics function.
The ________ is the party that moves or transports the product.
carrier
The most common problems in the use of IT in transportation relate to
cross-enterprise collaboration
The most common use of information technology in transportation is to
determine transportation routes using software.
The cost of various facilities in the shipper's supply chain network is
facility cost
Most industries you are not allowed to collude on rates and manage capacity to set rates, but in ocean shipping you are allowed to do so through-
forming Conferences (because the profit margin is low in this industry)
Real time location tracking of vehicles relies on
global positioning systems
The skillful supply chain manager declared she would not only disaggregate cycle inventory, but she would also aggregate safety inventory and use an inexpensive mode of transportation for replenishing cycle inventory and fast mode when using safety inventory for her product that had
high value and high demand
The competent supply chain manager decided to aggregate all inventories and as required, use fast mode of transportation for filling customer orders of his
high value and low demand product.
Pirates target --- not ---.
individuals not containers
Ignoring uncertainty in demand encourages a greater use of
inexpensive and inflexible transportation modes.
The complexity and scale of transportation makes it an excellent area within the supply chain
information technology systems
The cost of holding inventory incurred by the shipper's supply chain network is
inventory cost
Temporal aggregation
is the process of combining orders across time.
Cheaper modes of transport typically have
longer lead times and larger minimum shipment quantities
A shrewd supply chain manager would aggregate only safety inventory and use an inexpensive mode of transportation for replenishing cycle inventory if she is dealing with a
low value product and low demand
It is best to disaggregate all inventories and use an inexpensive mode of transportation for replenishment when you have a
low-value product and high demand
Inexpensive and inflexible transportation modes tend to
perform well when everything goes as planned
The cost of loading/unloading orders, as well as other processing costs associated with transportation, is considered
processing cost
Transportation plays a key role in every supply chain because
products are rarely produced and consumed in the same location
The ________ is the party that requires the movement of the product between two points in the supply chain.
shipper
Managers should ensure that a firm's transportation strategy
support its competitive strategy
Investment decisions regarding the transportation infrastructure (rails, locomotives, trucks, airplanes, etc.) are the primary concern of
the carrier
When infrastructure is publicly owned, it is important to price usage to reflect
the marginal impact on the cost to society
The most important operational decision related to transportation in a supply chain is
the routing and scheduling of deliveries
The key players in any transportation that takes place within a supply chain are
the shipper and the carrier
Serving a medium density of customers at a short distance is best done using
third party milk runs
The total amount paid to various carriers for transporting products to customers is
transportation cost
TEU is-
twenty-foot equivalent unit: a container that's 20 ft long
The cost to build one container ship is about-
$200 million
Suppose that a highway is governed by a use fee charged to motorists that is based on congestion, operation and maintenance. The total traffic t is used to determine the cost of 5t2. What is the marginal cost?
10t
Suppose that a highway is governed by a use fee charged to motorists that is based on congestion, operation and maintenance. The total traffic t is used to determine the cost of 5t2 + 7t. What is the marginal cost?
10t+7
Triple E class ships can hold how many TEUs?
18,000
Air cargo's share of world trade is --% by weight but --% by value.
2;40
Memphis is the --- largest cargo airport in the world.
2nd
Suppose that a highway is governed by a use fee charged to motorists that is based on congestion, operation and maintenance. The total traffic t is used to determine the cost of 5t2. What is the average cost per motorist?
5t
Suppose that a highway is governed by a use fee charged to motorists that is based on congestion, operation and maintenance. The total traffic t is used to determine the cost of 5t2 + 7t. What is the average cost per motorist?
5t+7
It takes how many vessels to start a service from one city to another (over ocean)?
6 vessels, which totals over $1 billion to start a service
--- of the world's cargo moves by container
90%
