Chapter 14 Transportation in a Supply Chain
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
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
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
________ 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
Which transportation network design option has the elimination of intermediate warehouses and its simplicity of operation and coordination as its major advantage?
Direct shipping network
________ 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
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 government
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
Which of the following is the fastest delivery method of transportation?
air
Serving a MEDIUM density of customers at a MEDIUM distance is best done using
an LTL carrier
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
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
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 across 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 replenishing 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
The total amount paid to various carriers for transporting products to customers is
transportation cost