MGT 333 - Ch. 9

A transportation strategy should include consideration of:

Should include all of the above (Safety on the ground, in the air and on water; Environmental factors; Consolidation of freight opportunities; Alternative transportation modes.)

A contract that specifies FOB Destination, freight prepaid means that:

The seller owns the goods while in transit up to the destination point, and will fill any claims in case of lost or damaged freight

Organizations operating under a just-in-time system, prefer to ship by:

Truck

Logistics costs can be divided into three categories: inventory carrying costs, administrative costs, and transportation (with transportation costs accounting for the bulk of the costs).

True

Logistics is responsible for the management of inventory in motion and at rest.

True

Two effective logistics cost reduction strategies are partnering agreements with logistics services providers and long-term contracts.

True

Compared to other modes of transportation, motor carriers provide the advantage of:

having the flexibility of delivering point-to-point service.

The selection of the FOB point is important to the purchaser, because it determines:

who pays the carrier, when legal title to goods being shipped passes to the buyer, who is responsible for preparing and pursuing loss or damage claims and who routes the freight.

Marine transport is best suited for products of low weight and high value; and items that are extremely perishable.

False

Rail is the most flexible mode of transportation and accounts for approximately 80 percent of transportation expenditures by U.S. firms.

False