Chapter 14 - Transportation in a Supply Chain
Suppose the 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 5t^2. 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. Te total traffic t is used to determine the cost of 5t^2 + 7t. What is the marginal cost?
10t + 7
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 cosy of 5t^2. 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. Te total traffic t is used to determine the cost of 5t^2 + 7t. What is the average cost per motorist?
5t + 7
Which one of these statements about use fees for a highway is best?
A flat rate results in higher use by most individuals
----- carriers offer a very fast and fairly expensive mode of transportation for cargo
Air
Which mode of transportation is the most expensive?
Air
Which of the following is the fastest method of transportation?
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
Which transportation network design option has the elimination of intermediate warehouses and its simplicity of operation and coordination as its major advantages?
Direct shipping network
A dabba uses the Mumbai railway system to carry about 40 lunches each day
FALSE
A firm can meet customer needs by using tailored transportation to provide the appropriate transportation choice based on customer and product characteristics, but a higher cost.
FALSE
Rail is the dominant mode of freight transportation in the United States and accounts for over 75 percent of the nation's freight bill
FALSE
The mode of transportation that results in the lowest transportation cost will lower total costs for a supply chain
FALSE
A carrier uses transportation to minimize the total cost (transportation, inventory, information and facility) while providing an appropriate level of responsiveness to the customer.
FALSE - Shipper
Transportation plays a key role in every supply chain because products are usually produced and consumed in the same location.
FALSE - are rarely
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.
FALSE - both of them
Firms can significantly reduce the safety inventory they require by physically aggregating inventories in one location, which will also decrease transportation cost
FALSE - not by aggregating and will not reduce transportation cost
Milk runs reduce outbound transportation costs by consolidating large shipments
FALSE - small shipments not enough to fill trucks all together
A distributor makes investment decisions regarding the transportation infrastructure and then makes operating decisions to try to maximize return from these assets
FALSE - the carrier
------ are the preferred mode of transport for online businesses such as amazon.com and dell, as well as for companies such w.w grainger and mcmaster 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
A milk route 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.
TRUE
Ignoring inventory costs when making transportation decisions can result in choices that worsen the performance of a supply chain
TRUE
Quasi-market prices for transportation infrastructure result in higher prices at peak locations and times and lower prices otherwise
TRUE
Tailored transportation is the use of different transportation networks and modes based on customer and products characteristics.
TRUE
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.
TRUE
The most important operational decision related to transportation in a supply chain is the routing and scheduling of deliveries
TRUE
The use of software to determine transportation routes has been the most common IT application in transportation
TRUE
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
TRUE
Transportation cost depends on the prices offered by different carriers and the extend to which the shipper uses inexpensive and slow, or expensive and fast, means of transportation.
TRUE
Transportation is a significant component of the costs incurred by most supply chains
TRUE
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)?
The shipper
In almost all countries, roads, seaports, airport, rail and canals have this in common
They were built or managed by the government
The total amount paid to various carriers for transporting products to customers is
Transportation cost
Which mode of transportation is the dominant form of freight transportation?
Truck
Which mode of transportation is the least expensive?
Water
Serving a medium density of customers at a medium distance is best done using
a LTL carrier
Serving a high density of customers at a long 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-docking 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
a private fleet with milk runs
The Mumbai dabbawalas perform
both a forward and reverse logistics function
The ------ is the party that moves or transports the product
carrier
The most common 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
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 replenishment 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 order of his
high-value and low-demand product
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 for the use of
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 time.
Cheaper modes of transport typically have
longer lead times and larger minimum shipment quantities
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
A shrewd supply chain manager would aggregate only safety inventory and use an inexpensive mode of transportation for replenishment cycle inventory if she is dealing with a
low-value product and low 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
supports 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 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