SCOM372/4 Ch. 14 Transportation MCQ

Ignoring uncertainty in demand encourages a greater use of Select one: a. inexpensive and inflexible transportation modes. b. expensive but flexible transportation modes. c. inexpensive and flexible transportation modes. d. expensive and inflexible transportation modes.

A

Real time location tracking of vehicles relies on Select one: a. global positioning systems. b. citizen band radios. c. teamsters. d. vehicles.

A

Serving a high density of customers at a short distance is best done using Select one: a. a private fleet with milk runs. b. a cross dock distribution center with milk runs. c. a package carrier. d. an LTL carrier.

A

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? Select one: a. 5t + 7 b. 10 c. 10t + 7 d. 12

A

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? Select one: a. 10t + 7 b. 5t + 7 c. 12 d. 10

A

The cost of holding inventory incurred by the shipper's supply chain network is Select one: a. inventory cost. b. processing cost. c. facility cost. d. transportation cost.

A

The most common problems in the use of IT in transportation relate to Select one: a. cross-enterprise collaboration. b. maintaining an Internet connection while in motion. c. vibration-resistant hardware. d. network security.

A

The most common use of information technology in transportation is to Select one: a. determine transportation routes using software. b. connect buyers and sellers. c. place person to person calls using cellular technology. d. calculate shipping rates.

A

The total amount paid to various carriers for transporting products to customers is Select one: a. transportation cost. b. processing cost. c. facility cost. d. inventory cost.

A

The ________ is the party that moves or transports the product. Select one: a. consumer b. producer c. carrier d. shipper

C

Transportation plays a key role in every supply chain because Select one: a. products are normally produced and consumed in the same location. b. the cost of transportation is inconsequential. c. products are rarely produced and consumed in the same location. d. transportation is not a factor in determining profitability.

C

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 Select one: a. high-value product and low demand. b. low-value product and high demand. c. high-value product and high demand. d. low-value product and low demand.

D

In almost all countries, roads, seaports, airports, rail and canals have this in common. Select one: a. They are the source of most of the tax revenue for municipalities. b. They are located near the water. c. They are staffed by foreign nationals. d. They were built and/or managed by the government.

D

Serving a low density of customers at a long distance is best done using Select one: a. an LTL carrier. b. a private fleet with milk runs. c. a cross dock distribution center with milk runs. d. a package carrier.

D

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? Select one: a. 5 b. 2.5t c. 2.5 d. 5t

D

The ________ is the party that requires the movement of the product between two points in the supply chain. Select one: a. producer b. consumer c. carrier d. shipper

D

The competent supply chain manager decided to aggregate all inventories and as required, use fast mode of transportation for filling customer orders of his Select one: a. low-value and low-demand product. b. low-value and high-demand product. c. high-value and high-demand product. d. high-value and low-demand product.

D

The complexity and scale of transportation makes it an excellent area within the supply chain for the use of Select one: a. a common unit of money. b. a fleet of vehicles. c. a dedicated logistics manager. d. information technology systems.

D

The cost of various facilities in the shipper's supply chain network is Select one: a. transportation cost. b. processing cost. c. inventory cost. d. facility cost.

D

The key players in any transportation that takes place within a supply chain are Select one: a. the shipper and the receiver. b. the shipper and the manufacturer. c. the shipper and the supplier. d. the shipper and the carrier.

D

The most important operational decision related to transportation in a supply chain is Select one: a. maximizing profitability of the supply chain. b. minimizing cost of transportation. c. reducing the level of cycle inventory. d. the routing and scheduling of deliveries.

D

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 Select one: a. distribution. b. manufacturing. c. retailing. d. transportation.

D

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 Select one: a. high value and low demand. b. low value and low demand. c. low value and high demand. d. high value and high demand.

D

When infrastructure is publicly owned, it is important to price usage to reflect Select one: a. the market clearing price. b. the cost of rebuild the infrastructure once it is fully depreciated. c. the incremental profit from the use of the infrastructure. d. the marginal impact on the cost to society.

D

Which mode of transportation is the most expensive? Select one: a. Truck b. Rail c. Water d. Air

D

Which mode of transportation is used primarily for petroleum and natural gas? Select one: a. Water b. Truck c. Air d. Pipeline

D

Which transportation network design option has the elimination of intermediate warehouses and its simplicity of operation and coordination as its major advantage? Select one: a. All shipments via central DC b. Shipping via DC using milk runs c. Direct shipping with milk runs d. Direct shipping network

D

________ carriers offer a very fast and fairly expensive mode of transportation for cargo. Select one: a. Water b. Rail c. Truck d. Air

D

________ typically move commodities over large distances at lower costs per unit shipped. Select one: a. Truck b. Package carriers c. Air d. Rail

D

Cheaper modes of transport typically have Select one: a. longer lead times and larger minimum shipment quantities. b. shorter lead times and larger minimum shipment quantities. c. shorter lead times and smaller minimum shipment quantities. d. longer lead times and smaller minimum shipment quantities.

A

Inexpensive and inflexible transportation modes tend to Select one: a. perform very poorly when plans change. b. perform well when everything goes as planned. c. perform poorly. d. all of the above

B

Investment decisions regarding the transportation infrastructure (rails, locomotives, trucks, airplanes, etc.) are the primary concern of Select one: a. the manufacturer. b. the carrier. c. the shipper. d. the supplier.

B

It is best to disaggregate all inventories and use an inexpensive mode of transportation for replenishment when you have a Select one: a. low-value product and low demand. b. low-value product and high demand. c. high-value product and high demand. d. high-value product and low demand.

B

Managers should ensure that a firm's transportation strategy Select one: a. involves cost minimization. b. supports its competitive strategy. c. involves profit maximization. d. is separate from competitive strategy.

B

Serving a medium density of customers at a short distance is best done using Select one: a. a package carrier. b. third party milk runs. c. an LTL carrier. d. a private fleet with milk runs.

B

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? Select one: a. 10 b. 10t c. 5t d. 5

B

The cost of loading/unloading orders, as well as other processing costs associated with transportation, is considered Select one: a. facility cost. b. processing cost. c. inventory cost. d. transportation cost.

B

Which of the following is the fastest delivery method of transportation? Select one: a. Truck b. Air c. Intermodal d. Rail

B

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? Select one: a. The manufacturer b. The shipper c. The carrier d. The supplier

B

Which of these statements about use fees for a highway is best? Select one: a. A flat rate results in lower use by most individuals. b. A flat rate results in higher use by most individuals. c. A fee based on congestion results in higher use by most individuals. d. A flat rate has no impact on use by most individuals.

B

Which transportation network design option uses a combination of other options to reduce the cost and improve responsiveness of the supply chain? Select one: a. Direct shipping with milk runs b. Tailored network c. Shipping via DC using milk runs d. Direct shipping network

B

Temporal aggregation Select one: a. decreases transportation costs because of economies of scale. b. all of the above c. is the process of combining orders across time. d. increases a firm's responsiveness.

C

________ 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. Select one: a. Rail b. Package carriers c. Water d. Air

B

Serving a high density of customers at a long distance is best done using Select one: a. a package carrier. b. an LTL carrier. c. a cross dock distribution center with milk runs. d. a private fleet with milk runs.

C

Serving a medium density of customers at a medium distance is best done using Select one: a. a private fleet with milk runs. b. a cross dock distribution center with milk runs. c. an LTL carrier. d. a package carrier.

C

Which mode of transportation is the dominant form of freight transportation? Select one: a. Air b. Rail c. Truck d. Water

C

Which mode of transportation is the least expensive? Select one: a. Air b. Truck c. Water d. Rail

C

Which transportation network design option establishes an extra layer between suppliers and retailers to store inventory and to serve as a transfer location? Select one: a. Direct shipping with milk runs b. Shipping via DC using milk runs c. All shipments via central DC d. Direct shipping network

C