LSCM 4560 Exam 1 in-class quizzes

Which independent regulatory commission has responsibility for administering the economic regulation of interstate oil and gas pipelines?

Federal Energy Regulatory Commission

One of your family members asks why so much information is captured at the point of sale. Based on what you read in chapter one, your response would be:

The bull-whip effect can be avoided since upstream suppliers have visibility over actual demand and do not need to forcast

CFO is concerned about rising freight rates and the need to possibly switch to air carriers due to the recent Hanjin bankruptcy affecting ocean carriers servicing the trans-Pacific market. The CFO believes increasing garment prices due to higher trans costs will affect sales. Your research indicates the apparel affected consists of high fashion goods with highly inelastic demand. As a result, your response should be:

Relax! You can switch to air carriers due to having highly inelastic demand. A change in price will have little effect on the quantity demanded.

Domestic water carriers are promoted through

maintenance of lock and dam system by the US Army Corps of Engineers

The use of highway user charges continues to generate controversy. The controversy regarding the Federal Highway Trust Fund stems from:

most of the system has been completed but user fees continue to be collected when additional urban sections may never be built

A shipment of 100 tons moving 50 miles would be how many ton miles?

5,000

The online test makes reference to logistical distance. We can define logistical distance as:

A complex representation that encompasses all the tasks required so that a movement between two locations can take place - includes physical flows, but also a set of activities necessary for the management for the flows.

This legislative act established the first independent regulatory commission and began the "initiation era" of transportation regulation:

Act to Regulate Commerce

Supply chain management came into vogue during the early 1990s. We can view supply chain management as:

All of the above.

transportation is affected by different forms of law. Which form of law relies on judicial precedent or principles of law developed from former court decisions?

Common law

You are planing to switch from trucks to rail to move goods on an on-going basis from the west coast to replenish inventories at retail outlets in the DFW area. You would expect which of the following cost trade-offs to occur?

Inventory costs would increase while transportation costs would decrease.

Prior to the logistics concept, as presented by the authors, which of the following focused on the movement of finished goods or the outbound flows of a firm's logistics system:

Physical distribution

One of your friends just received a shipment from an online retailer, and several parts are missing. Your friend plans to send the merchandise back to the vendor. Which supply chain flow is being used to return the merchandise back to the vendor?

Product/Services flow

Transportation contributes to the formation of the U.S. as a result of:

alienation from Great Britain due to localization trade and transportation

Courts play a unique and important role in the economic regulation of transportation. Which of the following describes the roles courts plays?

all of the above

The US requires a national transportation policy due to

all of the above

federal government has promoted railroads through

all of the above

The term modal split refers to

an analytical tool that divides the transportation market by modes of transportation

The benefit/cost ratio is used to

compare the total measurable benefits to society of a transportation project with the initial capital cost.

each trans mode possesses an inherent advantage. US transportation policy:

attempts to recognize and preserve the inherent advantages of each mode

The total ton-miles of freight in the United States

has increased and continues to grow but at a slower rate than the overall economy

the rationale for government control and intervention in the transportation marketplace stem from:

imperfections in the marketplace in a free-enterprise economy

in the selling and purchase of transportation services, two types of anti-trust violations can occur. which type, such as price-fixing, is illegal regardless of whether economic harm was done?

per se violation

Home-flag promotion attempts to protect domestic carriers by

requiring that only US-owned and domestic crews can originate and terminate domestic freight

An aggregate company sells concrete mix as one of its products. The concrete has highly elastic demand. In the past, the company has used motor carriers to distribute from Texas locations to locations in the Northeast. The CFO is seeking advice on what would most likely happen if they switched to rail and could lower the concrete price in the Northeast. Your response would be:

since the demand is highly elastic, demand for the concrete would most likely increase

In terms of transportation, reliability refers to

the ability to achieve consistent transit times

The transportation modes differ on each of these service characteristics. A mode's accessibility refers to:

the ability to move freight between a specific origin and destination

A key focus of physical distribution is the use of cost trade-offs. The focus of a cost trade-off is to obtain:

the best or lowest physical distribution system cost

Transportability refers to:

the ease of a movement, with high transportability requiring limited efforts and low transportability implying complexity and high costs.

Transportation has played an important role in the defense of the U.S. Which of the following transportation projects was developed to enhance the ability to defend the country?

the interstate highway system

Tolls for passenger vehicles represent which form of user charges?

unit charge