Logistics Ch.13 questions

16. Which of the following is not a possible payment option (terms of sale) for U.S. domestic shipments? a. FOB origin, freight collect and charged back b. FOB origin, freight collect c. FOB origin, freight prepaid d. FOB origin, freight prepaid and charged back e. all of the above are possible payment options

a. FOB origin, freight collect and charged back

23. An invoice submitted by the carrier requesting to be paid is ____. a. a freight bill b. a bill of lading c. a carnet d. dunnage

a. a freight bill

7. A(n) ____ rate simplifies each of the three primary rate factors—product, weight, and distance. a. class b. ad valorem c. exception d. commodity

a. class

30. Which of the following statements is false? a. detention is similar to demurrage, except that detention applies to pipelines b. demurrage is a penalty payment made to a railroad for keeping equipment beyond the time it should be released c. averaging agreements can be used with demurrage d. carriers and shippers can negotiate demurrage / detention policies e. all of the above are true

a. detention is similar to demurrage, except that detention applies to pipelines

35. ____ refers to rapidly moving a shipment through a carrier's system. a. expediting b. recoupering c. fast logistics d. cross-docking

a. expediting

14. In the class rate system, freight rates are expressed in dollars or cents per ____. a. hundredweight b. pounds c. kilograms d. tons

a. hundredweight

1. ____ refers to the buying and controlling of transportation services by either a shipper or consignee. a. transportation management b. logistics management c. routing d. tracking

a. transportation management

12. Liability for loss and damage is one factor used to determine a product's freight classification. Which of the following is not a loss and damage consideration? a. a commodity's propensity to damage other freight b. ability to load freight on top of a commodity c. a commodity's perishability d. a commodity's value e. all of the above are loss and damage considerations

b. ability to load freight on top of a commodity

20. The most important single transportation document is the ____. a. freight bill b. bill of lading c. commercial invoice d. certificate of origin

b. bill of landing

4. Which of the following is not one of the three primary factors that transportation rates are based upon? a. product b. density c. weight d. distance

b. density

13. With respect to a commodity's freight classification, shippers tend to prefer a ____ classification number and carriers tend to prefer a ____ classification number. a. lower, lower b. lower, higher c. higher, lower d. higher, higher

b. lower, higher

33. A ____ provides a variety of shipment information such as shipment preparation, freight invoicing, a list of preferred carriers, and a list of which carrier or carriers to use for shipments moving between two points. a. freight book b. routing guide c. tariff d. bill of lading

b. routing guide

11. ____ refers to how easy a commodity is to pack into a load. a. recoupering b. stowability c. drayage d. materials handling

b. stowabiltiy

21. Each of the following is true, except ____. a. the bill of lading is the most important transportation document b. the bill of lading adds to the complexity of the transportation manager's job c. the straight bill of lading contains the name of the consignee d. the order bill of lading does not contain the name of the consignee e. all of the above are true

b. the bill of lading adds to the complexity of the transportation manager's job

5. Weight times rate equals ____. a. density b. transportation cost c. stowability d. volume e. none of the above

b. transportation cost

29. Demurrage charges are collected by railroads, ____, and ____. a. motor carriers, pipelines b. water carriers, pipelines c. motor carriers, water carriers d. airlines, pipelines

b. water carriers, pipelines

31. U.S. freight railroads currently allow ____ hours of free time for unloading railcars and ____hours of free time for loading railcars. a. 24, 24 b. 24, 48 c. 48, 24 d. 48, 48

c. 48, 24

9. The National Motor Freight Classification currently has 18 separate ratings, or classes, that range for Class 50 to Class ____ a. 300 b. 400 c. 500 d. 600 e. none of the above

c. 500

6. A(n) ____ rate refers to a specific rate for every possible combination of product, weight, and distance. a. exception b. ad valorem c. commodity d. class

c. commodity

24. What is the time limitation within which a freight claim must be filed? a. three months from delivery date b. six months from delivery date c. nine months from delivery date d. twelve months from delivery date e. none of the above

c. nine months from delivery date

3. ____ signifies the price charged for freight transportation. a. fare b. tariff c. rate d. revenue

c. rate

17. With FOB destination, freight prepaid ____. a. the buyer pays the freight charges, but the seller owns the goods in transit b. the buyer pays the freight charges and owns the goods in transit c. the seller pays the freight charges and owns the goods in transit d. the seller pays the freight charges, but the buyer owns the goods in transit

c. the seller pays the freight charges and owns the goods in transit

27. Small shipments are defined as those that ____. a. involve three or fewer cartons b. are moved primarily by parcel carriers c. weigh more than 150 pounds but less than 500 pounds d. weigh more than 10 pounds but less than 100 pounds

c. weigh more than 150 pounds but less than 500 pounds

22. An order bill of lading is used ____. a. for overseas shipments b. when a shipment must be expedited c. when a shipment is started before the buyer is known d. to guard against disruptions in transit

c. when a shipment is started before the buyer is known

19. A(n) ____ refers to a transportation manager who purchases a prespecified level of transportation service and is indifferent to the mode and carrier used to provide the transportation service. a. industrial transportation manager b. certified logistics professional c. third-party logistics shipper d. amodal shipper

d. amodal shipper

10. ____ refers to how heavy a product is in relation to its size. a. stowability b. volume c. weight d. density

d. density

32. ____ can be defined as the process of determining how a shipment will be moved between origin and destination. a. tracking b. recoupering c. transportation d. routing

d. routing

25. Which of the following is false? a. freight claims must be filed within nine months of the delivery date b. concealed loss and damage is a delicate area for shippers and carriers c. the volume of freight claims activity has dropped since transportation deregulation d. shippers or carriers are entitled to a product's full retail value when filing a freight claim e. all of the above are true

d. shippers or carriers are entitled to a product's full retail value when filing a freight claim

15. Suppose that a particular item is Class 200 according to the National Motor Freight Classification. What is the relationship between this item's rate and the rate for an item in Class 100? a. the class 200 rate is lower than the class 100 rate b. the rate relationship depends on other factors c. the rates are identical d. the class 200 rate is higher than the class 100 rate e. there is insufficient information to answer the question

d. the class 200 rate is higher than the class 100 rate

26. If a product destroyed or damaged in transit is intended to be placed into general replacement inventory, then the retailer would likely receive ____. a. nothing but an apology from the carrier b. the wholesale price, plus 20% c. the retail price, minus 20% d. the wholesale price, plus freight if previously paid

d. the wholesale price, plus freight if previously paid

34. ____ refers to determining a shipment's location during the course of its move. a. expediting b. recoupering c. reparation d. tracking

d. tracking

2. In general terms, ____ accounts for about 6% of U.S. gross domestic product. a. warehousing b. logistics c. supply chain management d. transportation

d. transportation

8. Which of the following is not a factor used to determine a product's classification? a. density b. liability to damage and theft c. stowability d. ease of handling e. all of the above are factors used to determine a product's classification

e. all of the above are factors used to determine a product's classification

28. Which of the following statements is false? a. carriers may be reluctant to accept small shipments because they require a high degree of manual labor b. some carriers believe they lose money on small shipments c. consolidating small shipments into larger ones could result in poorer service to the final customer d. consolidating small shipments into larger ones likely results in higher inventory carrying costs e. all of the above are true

e. all of the above are true

18. Which of the following tends to be the most important factor in carrier selection? a. pricing b. loss and damage performance c. transit time reliability d. financial stability e. none of the above

e. none of the above

10. Liability to damage and theft is viewed as the primary factor in setting a product's freight classification.

false

11. Volume refers to how heavy a product is in relation to its size.

false

14. With respect to a commodity's freight classification, shippers tend to prefer a higher classification number while carriers tend to prefer a lower classification number.

false

16. With FOB origin pricing, the seller retains title and control of the shipment until it is delivered.

false

2. Routing refers to the buying and controlling of transportation services by a shipper or consignee.

false

20. Transit time reliability is the most important factor that shippers tend to use when selecting carriers.

false

21. An amodal shipper refers to the use of a logistics intermediary to make the relevant transportation decisions.

false

24. An order bill of lading specifies the consignee.

false

26. The bill of lading is an invoice, submitted by the carrier, requesting to be paid.

false

28. A freight claim must be filed within six months of the shipment's delivery date.

false

3. Freight transportation accounts for approximately 10% of U.S. gross domestic product.

false

31. The volume of transportation freight claims has increased in recent years.

false

32. Small shipments refer to those that can be handled relatively expeditiously and inexpensively by a small package carrier.

false

35. U.S. freight railroads currently allow 24 hours of free time for unloading rail cars and 48 hours of free time for loading rail cars.

false

38. Expediting refers to determining a shipment's location during the course of its move.

false

7. The class rate system simplifies with respect to three primary factors—density, product, and distance.

false

8. The National Motor Freight Classification has 18 separate classes, or ratings, from Class 50 to Class 600.

false

1. Today's transportation manager can play an active role in blending the appropriate pricing and service packages for his / her organization.

true

12. Stowability refers to how easy a commodity is to pack into a load.

true

13. An item with a freight classification of Class 200 will be charged a higher rate than an item with a freight classification of Class 100.

true

15. The price and service trade-offs available to today's transportation manager are limited only by her / his creativity and ingenuity.

true

17. A disadvantage of FOB destination pricing from a seller's perspective is that the seller's organization must have a thorough knowledge of transportation management.

true

18. Because transportation costs tend to be lower per unit of weight for larger shipments, there is a natural motivation to consolidate smaller shipments into larger ones.

true

19. The carrier selection procedure appears to be less straightforward than the procedure for modal selection.

true

22. Transportation documentation serves both a practical function (e.g., what, where, and how much is being transported) as well as potentially providing legal recourse if something goes awry.

true

23. The most important single transportation document is the bill of lading.

true

25. Order bills of lading can be used when faced with slow-paying customers.

true

27. Freight bill audits are designed to detect errors that result in overcharges and to correct those errors in the future.

true

29. Suppose that a shipment of products destined for a particular retailer is lost or damaged. If these products were going into general inventory replacement stock, then the retailer is entitled to recover the wholesale price plus freight costs (if they were paid).

true

30. Concealed loss and damage claims are some of the most difficult for shippers and carriers to handle.

true

33. From a carrier perspective, there may be a reluctance to accept small shipments because they tend to require a high degree of manual labor.

true

34. Demurrage is a penalty payment associated with railroads, while detention is a penalty payment associated with motor carriers.

true

36. In demurrage-related averaging agreements, slow equipment returns can be offset by fast equipment returns.

true

37. A routing guide can provide a variety of shipment-related information such as shipment preparation and a list of preferred carriers for shipment moving between two points.

true

39. Expedited shipments by motor carriage can sometimes provide faster and more reliable service than expedited shipping involving air transportation.

true

4. A rate is the logistics term that signifies the price charged for freight transportation.

true

40. Some transportation managers utilize performance scorecards that contain a list of relevant attributes and an evaluation of each carrier on every attribute.

true

5. A transportation charge (the cost of transportation) can be calculated by multiplying a product's weight times the applicable rate.

true

6. A commodity rate is very good for dealing with demand-specific situations.

true

9. Ease of handling is one of the four factors used to determine a product's freight classification.

true