SUPPLY CHAIN 328 FINAL
generally viewed as adequate for accommodating the largest existing wide-body aircraft
A 3,047 meter (10,000 foot) runway is significant because it is ___________.
commercial invoice
A ___________ is similar in nature to a domestic bill of lading and summarizes the entire transaction.
shippers mark
A ___________ is used in areas where dockworkers cannot read but need a method to keep documents and shipments together.
shipper's export declaration
A ___________ often serves as the basis for a country's official export statistics.
routing guide
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.
lock
A ___________ raises or lowers barges so that they can meet the river's level as they move upstream or downstream.
certificate of origin
A ___________ specifies the country or countries in which a product is manufactured and can be required by governments for control purposes or by an exporter to verify the location of manufacture.
9
A freight claim must be filed within ___________ months from the date on the bill of lading.
embargo
A(n) ___________ prohibits trade between countries.
commodity
A(n) ___________ rate is very good for dealing with demand-specific situations.
commodity
A(n) ___________ rate refers to a specific rate for every possible combination of product, weight, and distance.
class
A(n) ___________ rate simplifies each of the three primary rate factors—product, weight, and distance.
amodal shipper
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.
recognizes that inventories are not of equal value to a firm
ABC analysis of inventory ___________.
international freight forwarders
Advising on acceptance of letters of credit, booking space on carriers, and obtaining consular documents are principal functions provided by ___________.
high-value; low-volume
Airfreight is best suited to transport ___________, ___________ products.
motor carrier
Airfreight is the costliest mode for freight transportation. What is the second most expensive mode of freight transportation?
swift transportation
All of the following are less-than-truckload (LTL) carriers except:
made to stock
All of the following are suggestions for dealing with dead stock (inventory) except:
export packer
An ___________ custom packs shipments when the exporter lacks the equipment or the expertise to do so itself.
a freight bill
An invoice submitted by the carrier requesting to be paid is ___________.
Buffer
Another name for safety stock is ___________ stock.
60
Approximately ___________ percent of cross-border shipments move by water transportation.
four
Common carriers of transportation have ___________ obligations.
increase
Concerning the EOQ model, if demand or annual usage increases by 10 percent, then the EOQ will ___________.
stay unchanged
Concerning the EOQ model, if the ordering costs increase by 10 percent and the product value increases by 10 percent, then the EOQ will ___________.
receivers of freight
Consignees are ___________.
12
Dead inventory (dead stock) refers to a product for which there are no sales during a ___________-month period.
water carriers; pipelines
Demurrage charges are collected by railroads, ___________, and ___________.
accounting cost
Each of the following is a component of inventory carrying cost except:
A truckload shipment involves only one customer.
Each of the following statements is true except:
product movement from manufacturer to retailer
Efficient consumer response (ECR) tends to focus on ___________.
parcel carriers
Firms that specialize in carrying packages that weigh up to 150 pounds are called ___________.
High;low
Holding high levels of inventory results in ___________ inventory carrying costs and ___________ stockout costs.
Low;high
Holding low levels of inventory results in ___________ inventory carrying costs and ___________ stockout costs.
safety concerns
Hours-of-service (HOS) rules and speed limits have long been justified in the motor carrier industry on the basis of ___________.
the wholesale price plus freight if previously paid
If a product destroyed or damaged in transit is intended to be placed into general replacement inventory, then the retailer would likely receive ___________.
transportation
In general terms, ___________ accounts for about 6 percent of U.S. gross domestic product.
standard; broad
In terms of rail gauge, China primarily uses ___________ rail gauge whereas India primarily uses ___________ rail gauge.
railroad; trucks
In the United States, ___________ account for the largest share of ton miles and ___________ account for the majority of freight revenues.
the prime rate of interest
In the United States, ___________ has traditionally provided a convenient starting point when estimating the interest charges associated with maintaining inventory.
65
In the United States, commercial airline pilots must retire at age ___________.
9
Inland waterways in the United States are dredged to a depth of ___________ feet, which tends to be the minimum depth required for most barges.
19;20
Inventory carrying costs in the United States since 2010 have ranged between ___________ and ___________ percent.
one-third
Inventory costs in the United States in the twenty-first century represent approximately ___________ of total logistics costs.
increased rate of demand; longer-than-normal replenishment
Inventory flow diagrams illustrate that safety stock can prevent two problem areas, ___________ and ___________.
refers to the fact that more items are recorded entering than leaving warehousing facilities
Inventory shrinkage ___________.
dividing the cost of goods sold by average inventory
Inventory turnover can be calculated by ___________.
operate through a series of terminals
Less-than-truckload motor carriers ___________.
the ability to load freight on top of a commodity
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 broader service network
Ocean carrier alliances provide two primary benefits to participating members, namely, the sharing of vessel space and ___________.
trucking
Private transportation is most prevalent in the ___________ industry.
the distance between the inner sides of two parallel rail tracks
Rail gauge refers to ___________.
lower-value; higher-volume
Railroads tend to transport ___________, ___________ shipments.
china
Seven of the 10 busiest container ports are located in ___________.
Europe
Short-sea shipping (SSS) is widely accepted and practiced in ___________.
weigh more than 150 pounds but less than 500 pounds
Small shipments are defined as those that ___________.
The class 200 rate is higher than the class 100 rate.
Suppose that a particular item is class 200 according to the National Motor Freight Classification (NMFC). What is the relationship between this item's rate and the rate for an item in class 100?
was created in recognition of the importance of logistics in international trade
The Logistics Performance Index (LPI) ___________.
500
The National Motor Freight Classification (NMFC) currently has 18 separate ratings, or classes, that range from Class 50 to Class ___________.
the European Union
The Open Aviation Area is an open skies agreement between the United States and ___________.
department of transportation (DOT)
The U.S. ________ is the federal government body with primary responsibility for transportation safety regulation.
carrying; ordering
The economic order quantity (EOQ) deals with calculating the proper order size with respect to ___________ costs and ___________ costs.
the point at which carrying costs equal ordering costs
The economic order quantity (EOQ) determines ___________.
bill of lading
The most important single transportation document is the ___________.
petroleum
The predominant commodity moved by barge transportation is ___________.
flexability
The primary advantage for motor carriers is ___________.
reduced transit times
The primary advantage to land bridge service is ___________.
five
There are ___________ modes of transportation.
10,000
Truckload carriers focus on shipments of greater than ___________ pounds.
vendor managed inventory
Under ___________, the size and timing of replenishment orders are the responsibility of the manufacturer.
average daily demand times the length of the replenishment cycle
Under conditions of certainty, a reorder point is equal to ___________.
transportation cost
Weight times rate equals ___________.
ocean carrier alliance
What concept refers to a situation in which ocean carriers retain their individual identities but cooperate in the area of operations?
20 foot container
What container size is often used to rank water ports and measure containership capacity?
letter of credit
What international method of payment is issued by a bank and guarantees payment to a seller provided that the seller has complied with applicable terms and conditions of the particular transaction?
united parcel service
What is the largest transportation company by revenues in the United States?
balance of payments
What is the name for a system of accounts that records a country's international financial transactions?
it becomes costlier to import products to the country, but its exports surge
When one country's currency is weak relative to other currencies, ___________.
United States, India and China
Which countries rank first, second, and third, respectively in terms of highway mileage?
nonvessel-operating common carrier (NVOCC)
Which international logistics service provider is often confused with the international freight forwarder?
open account
Which method of payment for international shipments is extremely risky for the seller and minimally risky for the buyer?
railroads
Which mode is not the "best" or "worst" on any of the six attributes (e.g., capability, flexibility, etc.) that were used to compare transport modes?
free carrier (FCA)
Which of the following Incoterms does not apply to sea and inland waterway transport only?
transporting orders
Which of the following costs is not a component of ordering (order) costs?
population
Which of the following is not a cultural factor that can influence international logistics?
third party transportation
Which of the following is not a legal classification of carriers?
forfaiting
Which of the following is not a method of payment for international shipments?
payment for freight pickup and delivery
Which of the following is not a source of income for international freight forwarders?
stockouts are permitted
Which of the following is not an assumption associated with the basic economic order quantity (EOQ) model?
collaborative planning, forecasting, and replenishment
Which of the following is not an example of a lean inventory approach?
product value
Which of the following is not one of the four factors used to determine a product's classification?
density
Which of the following is not one of the three primary factors that transportation rates are based upon?
The customer goes to a competitor for a purchase.
Which of the following situations is likely the most damaging (costly) with respect to a stockout?
Inventory for sale in one nation generally serves the needs of markets in nearby nations.
Which of the following statements about international inventory management is false?
Sachets tend to be sold in higher-income countries.
Which of the following statements about sachets is false?
It is relatively easy to forecast the demand for the necessary parts.
Which of the following statements about service parts logistics is false?
Shipment costs increase in direct proportion to the increase in distance.
Which of the following statements about the class rate system is false?
JIT tends to focus on product movement from manufacturer to retailer.
Which of the following statements about the lean approach and just-in-time (JIT) is false?
VMI will produce immediate benefits.
Which of the following statements about vendor-managed inventory (VMI) is false?
The importance of individual carrying costs factors (categories) is generally consistent from product to product.
Which of the following statements if false?
China ranks first in the world in terms of highway mileage.
Which of the following statements is false?
Detention is similar to demurrage except that detention applies to pipelines.
Which of the following statements is false?
Shippers or carriers are entitled to a product's full retail value when filing a freight claim.
Which of the following statements is false?
Small shipments should be consolidated across place rather than across time.
Which of the following statements is false?
Stockouts are generally less costly than having too many items in stock.
Which of the following statements is false?
the seller pays the freight charges and owns the goods in transit
With FOB destination, freight prepaid ___________.
FOB origin
With ___________, the buyer assumes title and control of a shipment at the point of pickup.
FOB destination
With ___________, the seller retains title and control of a shipment until it is delivered.
FOB origin, freight collect and charged back
With ___________, the seller retains title and control of a shipment until it is delivered.
surface transportation board (STB)
With respect to U.S. economic regulation, the ___________ has primary responsibility for resolving railroad rate and service disputes, reviewing potential rail mergers, and some jurisdiction over motor carriers, domestic water transportation, and pipelines.
lower; higher
With respect to a commodity's freight classification, shippers tend to prefer a ___________ classification number and carriers tend to prefer a ___________ classification number.
lower;lower
With respect to determining the average cost of a stockout, the higher the probability of a delayed sale, the ___________ the average stockout costs and the ___________ the inventory that needs to be held.
export management companies
___________ act as the export sales department for a manufacturer.
air carriers
___________ are generally the fastest form of transportation for shipments exceeding 600 miles.
tariffs
___________ are taxes that governments place on the importation of certain items.
routing
___________ can be defined as the process of determining how a shipment will be moved between origin and destination.
railroads
___________ have a level of market concentration and dominance that is not found in the other modes.
transportation
___________ is the actual, physical movement of goods and people between two points.
pipeline
___________ is the most reliable form of transportation.
shanghai
___________ is the world's busiest container port.
complementary
___________ items refer to those that are used or distributed together.
Trunk
___________ pipelines carry crude oil from gathering-line concentration points to the oil refineries.
substitute
___________ products refer to those that customers view as being able to fill the same need or want as another product.
ABC analysis of inventory
___________ recognizes that all inventories are not of equal value to a firm and thus all inventories should not be managed in the same way.
load centers
___________ refer to major ports where thousands of containers arrive and depart each week.
tracking
___________ refers to determining a shipment's location during the course of its move.
stowability
___________ refers to how easy a commodity is to pack into a load.
density
___________ refers to how heavy a product is in relation to its size.
expediting
___________ refers to rapidly moving a shipment through a carrier's system.
transportation management
___________ refers to the buying and controlling of transportation services by either a shipper or consignee.
inventory turnover
___________ refers to the number of times inventory is sold in a one-year period.
gross world product
___________ refers to the sum of the gross domestic product of all countries.
line-haul
___________ refers to the terminal-to-terminal movement of freight or passengers.
rate
___________ signifies the price charged for freight transportation.
Psychic
___________ stock is carried to stimulate demand.
Pipeline
___________ stock refers to inventory that is en route between various nodes in a logistics system.
Speculative
___________ stock refers to inventory that is held for several reasons, to include seasonal demand, projected price increases, and potential shortages of product.
Buffer
___________ stock refers to inventory that is held in addition to cycle stock to guard against uncertainty in demand and/or lead time.
Base
___________ stock refers to inventory that is needed to satisfy normal demand during the course of an order cycle.
intermodal
___________ transportation occurs when two or more modes work closely together in an attempt to utilize the advantages of each mode while at the same time minimizing their disadvantages.
Croatia
___________ was the most recent country to be admitted to the European Union, in 2013.
Germany
___________ was the top-ranked country in the 2016 Logistics Performance Index (LPI).
Inventory
_____________ refers to stocks of goods and materials that are maintained for many purposes, the most common being to satisfy normal demand patterns.
looks to match a shipper's freight with a carrier to transport it
a transportation broker _______
is transportation service that is supplemental to the line-haul
accessorial service _______
when a shipment is started before the buyer is known
an order bill of lading is used
require a certain percentage of traffic to move on a nation's flag vessels
cargo preference rules _____
involve obtaining permission from the importing country for the goods to enter
consular documents _______
The bill of lading adds to the complexity of the transportation manager's job.
each of the following is true except
consolidate the shipments of several shippers
freight forwarders _______
A(n) ___________ limits the amount of product that may be imported from any one country during a particular period of time.
import quota
terms of sale for international shipments
incoterms refer to _______
own all their vehicles as well as pick up and delivery facilities
integrated air carriers ______
function in a manner similar to freight forwarders
shippers' associations _______
cartels of ocean vessel operators operating between certain trade areas
shipping conferences refer to _____