TRA midterm
What was the purpose of the legislation which created Amtrak
It relieved railroads from the responsibility of providing passenger service
The ocean shipping industry has begun to use what type of fuel to improve emissions?
LNG
. The size of a countries population is important because
Labor is a prime factor for economic growth
Which airport historically is the largest with regard to the annual number of passengers?
Atlanta
What is the primary division between motor carriers?
For hire and private
What is the primary method of service competition between air carriers?
Frequency and timing
There are several types of truck terminals. Which one is not used by LTL carriers?
Fuel terminals
trucking equipment innovation that can improve fuel efficiency?
Gap reducers Trailer tails Trailer skirts
What led to the erosion of rail dominance in U.S. transportation?
Government funded construction of roads
. There was spectacular growth in global trends after 1990. Why?
Greater acceptance of foreign produced manufactured products.
This type of rate applies to or from while regions, rather than points within a region:
Group rate
What does truck platooning refer to?
Groups of vehicles that communicate via wireless connection that assists with vehicle movements
Many believe that next generation transportation management systems will:
Harness the power of business analytics tools
The railroad dominate the market for
Hauling 30,000 pounds or more over 300 miles
What is one of the service characteristics of the trucking industry?
Truck rates are cheaper than rail or air
Efforts are underway to take many of the routine operator tasks in transportation and
Turn them over to computers
top importer in the world is:
U.S.
Who is the largest single customer of some railroads
UPS
What is the difference between pure competition and monopolistic competition?
Under pure competition there are many sellers and the product is homogeneous
Much of the future investment in transportation management systems (TMS) is expected to go to:
Upgrades of current TMS technology
commodity rates are also referred to as
freight all kinds rates
Which cost element in the U.S. scheduled airlines accounts for the largest portion of operating costs?
fuel
Why was there spectacular growth in global trade after 1990
greater acceptance of foreign produced manufacture products
there was spectacular growth in global trends after 1990. why?
greater acceptance of foreign produced manufactured products
What is the percentage of revenue generated by the top 10 air carriers?
86 percent
The demand for freight:
Is a derived demand based on the demand for products
Which of the following is NOT an information quality standard?
Regulation
Reverse logistics systems are developed for
returning unacceptable products
he major cost element borne by the railroad industry is the
rights of way
Why do business people pay more for airline travel
rigid schedules
Forward information in the supply chain is utilized to provide
-advanced shipment notices -order status -inventory availability
positive outcomes that have occurred in the global economy with increased interdependence
-lower prices - new employment opportunities -wider availability of goods
Aggregate transportation expenditures are about what percentage of GDP in the U.S.?
10%
Aggregate transportation expenditures are about what percentage of GDP in the us
10%
If a product cost 100 to produce, the firm expects 15% margin on the cot to produce and transportation per unit cost $5, what is the least price the firm is likely to accept for the product
120
If a product costs $100 to produce, the firm expects 15% margin on the cost to produce and transportation per unit costs $5, what is the least price the firm is likely to accept for the product?
120
In 2010, what was the approximate percentage of people in the United States who were 65 or older?
15
In 2010, what was the approximate percentage of people in the United States who were 65 or older?
15%
When did scheduled common carrier freight and passenger service begin in the U.S.?
1830
when did the supply chain management concept capture the attention of senior level executives?
1990s
What percent of rail revenue is earned by local carriers?
2.6
Based on Lardner's law, if tranportation cost decreased by 2500, how much does the relevant market area increase
200%
How many rail mergers have occurred in the last 30 years?
28
What type of trailer can be coupled in twos and threes?
28 foot
What type of trail can be coupled in two or three
28ft
The volume of global trade over the course of the last 50 years has
2x
intermodal traffic expanded by how much % from 1980 to 2012
319
ow much did the U.S. airlines spend on fuel in 2014?
46.3B
What is the standard truck gauge in the us
4ft 8.5 inches
in 2030, what is the estimated percentage of population that will live in suburban areas?
60%
How many Class 1 rail companies are there?
7
Looking at your profit and loss statement you note that you have operating expenses of $10M and operating revenue of $14M, what is your operating ratio?
71.41
The top 30 countries make up what percentage of world's exports?
80%
In 2013, railroads transported what percentage of all intercity ton miles moved by all modes
9.4
The Federal Highway Trust Fund pays for what percentage of construction cost on the interstate highway system
90%
Railroad per unit costs decline as traffic increases. What is the reason for this cost behavior
A large proportion of fixed costs in the cost structure so costs are spread out among high volume of units
What is skimming price
A means to maximize profit until competitors enter the market
skimming price
A means to maximize profit until competitors enter the market
A LIDAR system uses which of the following?
A pulsed laser
What is a private carrier?
A trucking operation that only hauls freight for the firm which owns it
what area of the world will have the largest number of megacities by 2015
Asia
which aircraft has the highest operating cost in terms of $/hour
B727-100
BRIC
Brazil, Russia, India, and China
How is the relevant market structure in transportation described
By identifying the relevant market area for one commodity moving between two points
What does most of the trucking industry consist of
Carriers operating 6 or fewer trucks
. Third degree pricing discrimination is defined as
Charging different prices to different buyers who use the same commodity or service
Thired degree pricing discrimination is defined as
Charging different prices to different buyers who use the same commodity or service
Value of service pricing is also called:
Charging what the traffic will bear
Largest population in 2014
China
Which of the following countries had the largest population in 2014
China
largest export trade flows
China
Who are the owners the greatest percentage of rolling stock in use?
Class I railroads
The type of cost created from a situation where the production of one service necessarily entails the production of another service in known as
Common cost
The relevant market structure under deregulation is described by a theory which substitutes potential competition for the active participation of many sellers. What is this theory called?
Contestable Markets
Private carriers tend to have greater:
Control and flexibility
Global trade management software is helpful with _
Cross border business
One reason autonomous transportation makes sense for the trucking industry is
High driver turnover Sustainability
Which of the following commodities would be most likely to be shipped on an air carrier?
High-value and time-sensitive goods
Which of the following is not one of the current issues facing the trucking industry in the future?
Highway construction with its resultant delays
What does funding for highways come from
Highway user taxes
Value of service considers the
Impact of transportation costs and services on the demand for the product
Value of service considers the
Impact of transportation costs and services on the demand for the product.
Electronic logging devices (ELD) have been mandated in the United States to:
Improve safety and more accurately reflect log driver hours
In the 21st Century, the U.S. Transportation System will face serious challenges from:
Inadequate infrastructure b. Sustainability issues c. Energy costs
By using a blockchain, a transportation company has the ability to __
Increase processing times within transportation Reduce cost in the supply chain Reduce documentation in the supply chain
Largest population by 2050
India
Which of the following countries is expected to have the largest population in 2050?
India
Which of the following is not a condition for pure competition
Involves a heterogeneous product or service
Which best characterizes the short run cost structure of the railroads
Large portion of indirect fixed cost
Railroad carloadings have declined since 1900. What is the primary reason for the decline?
Larger cars and increasing car productivity
One of the benefits of a railroad merger is
Less frequent interchanges between companies means faster service
Typical TMS execution functionality includes:
Load planning
What do the users of truck service benefit from.
Lower inventory levels due to smaller shipments that other modes
. Air carrier revenues are concentrated in which group of carriers?
Major, nationals, regionals
. Which mode of transportation is most important in terms of freight ton-miles?
Motor Carriers
What mode of transportation is most important in terms of freight ton miles
Motor carriers
The engagement of multiple stakeholders in transportation planning drives the need for _________.
Multi-directional information flows across a network
Which is the best reasons for the increase in airline intramodal competition since deregulation in 1978?
New air carriers entering given markets
What is the difference between TOFC and COFC service?
One method moves the trailer on its wheel and the other moves only the "box" or the container ****
What is the major cost element of the railroad?
Operation and maintenance of rights
Software as a service (SaaS) is also called a
Pay as you go method
There are two separate concepts in cost of service pricing. They are:
Prices based on average or marginal cost
Value of service pricing is best described as
Pricing based upon what the traffic will bear
Supply chains rely on three flows: _________, ________,and___________
Product, money, information
Supply chains rely on three flows:_____, ______, and ______.
Product; money, information
major flows in a supply chain
Products Information Financials/ cash
. A profit-maximizing oriented carrier will not set a price in the long-run that would:
Prohibit the movement of freight or passenger.
A profit- maximizing oriented carrier will not set a price in the long-run that would:
Prohibit the movement of freight or passengers
Which is the best reason for the relatively low proportion of fixed costs in the cost structure of the air carriers?
Public investment in the airway and airport
Under transportation regulation, the amount found in a Tariff as payment to a carrier for performing a given transport service is called a:
Rate
What are some of the problems which the use of Common Costs raises for Cost of Service Pricing, particularly the Average Cost approach?
Rates based upon average or fully allocated cost makes it necessary to apportion common costs by some arbitrary means.
Value of service pricing is based on the concept which states
Rats should be related to the value of the commodity- the higher the value of the commodity the higher the rate should be
consistent with a green supply chain strategy
Reduced packaging materials
Cash flow is important to organizations producing products for sale because it
Reducing the need for working capital
Mountain airlines has annual operating revenues of less than $75 million with hubs in Denver and Salt Lake City.This airline would be classified in which air carrier category?
Regional carrier
Air freight transportation is attractive to shippers because of the lower packaging costs associated with the transport of cargo. Which air transportation characteristics allow reduced packaging by shippers?
Relatively smooth ride and automated ground handling systems
Carrier pricing decisions fall into three categories. The categories are setting prices for a new service, modifying prices over time, and:
Responding to price changes.
Reverse logistic systems are developed for:
Returning unacceptable products
From the planning perspective, what support activities does TMS incude?
Routing Scheduling Carrier selection
Based upon the number of passengers, what was the top airline in 2016?
SW
Top airline of 2007
SW
Which of the following is considered a non-economic transportation regulation area
Safety b. Security c. Environment ALL
Best of breed solutions refer to:
Software applications from leading providers
Primary reason for the growth of trucking after WWII
The Interstate Highway System was constructed which allowed trucs to give faster service over long distances.
Which of the following is a reason the transportation industry needs to think about sustainable operations?
The amount of fuel used per year
What is the status of competition within the motor carrier industry
The industry is highly competitive with competition between all carriers as well as firms such as united parcel service and fedex
What is the status of competition within the motor carrier industry?
The industry is highly competitive with competition between all carriers as well as with firms such as United Parcel Service and FedEx.
Which is correct regarding value-of-service pricing?
The model considers the ability of the commodity to bear a charge
here neccessary conditons must be meet before a seller can practice thired degree price discrimination. The conditions are: buyers must be separated into groups or submarkets according to their elasticity of demand,the seller must process some degree of monopoly power, and
The seller must prevent transfer of sales between the groups or submarkets
There is a relatively small amount of capital requirements to enter:
The truckload industry
. The firm is in a decreasing cost industry, and its prices are based upon strict marginal costs. The firm experiences a loss. In this case, for the firm to recover its fixed costs, it must use marginal cost as a floor for its process, and:
Use the value of service to determine how high above marginal cost the price should be set.
ransportation management systems (TMS) provides greater __ and optimize the __
Visibility, supply chain
Adam smith's book
Wealth of Nations
LTL carriers must make the same type of equipment decisions as TL along with deciding:
Where to deploy this equipment.
What positive outcomes have occurred in the global economy with increased interdependence:
Wider availability of goods Lower prices New employment opportunities
air carriers competiton
a lot from other air carriers limited amount from other modes
Price is a concept relating to how post-deregulation transportation firms determine and impose charges for their services. Which is a distinguishing feature of this concept of price?
a value or level that is determined based on prevailing market forces
What percentage of ton mile traffic in the U.S. is carried by air?
a. 4% b. 10% c. 15% d. None of the above
Transportation has been described as
a.An enabler for firms to compete in the growing and complex marketplace b.The glue that holds the supply chain together c.The enabler of the underlying tactics and strategies for supply chains
s evaluating transportation modes for shipment of the company's products. WLG's components division produces electronic assemblies according to buyer's specifications. The typical product is high-value,small, very fragile, insurance costs are $1750 per day for each item, and the shipment distance is 2,500 miles. Which mode of transportation would be most appropriate?
air
What mode of transportation is most important in terms of passenger miles
air carriers
mode of transportation is most important in terms of passenger-miles?
air carriers
transportation systems are critical to industrialized societies because
allow producers to expand market areas
another name for the extended enterprise perspective of the supply chain is
boundary spanning
What does most of the trucking industry consist of?
carrier operating 6 or fewer trucks
Transportation management systems (TMS) execution capabilities assist transportation professionals in improving decision about ___________ activities.
ccc
ozone reduction is a concern due to what compound used in refrigeration
chlorofluorocarbons
What commodity accounted for 6,204,000 railcar loads in 2012?
coal
coal
coal commodity accounted for 6,204,000 railcar loads in 2012 and historically accounted for most trailer loads
basic types of rates are class, exception, and
commodity
Which type of railroad car has the greatest numbers in service?
covered hopper
primary reason for creation of interstate roadway system
defence
Federal Motor Carrier Safety Administration job:
define driver's license requirements truck specifications(lights,tires,etc) Safety fitness inspection to give rating
sensitivity of customers to changes in price
demand elasticity
The demand for transportation is considered a
derived demand
demand for transportation is called
derived demand
Volume of trade over the course of the last 50 years has
doubled
reason for driver turnover is
driver shortage
What key element is critical to the ability to sell products made in a large scale production facilities?
efficient transportation
key element critical to ability to sell product in large scale production facilities
efficient transportation
For the theory of contestable markets to work, four conditions have to be met: no barriers to market entry, no economies of scale present, consumer willingness to switch between carriers, and
existing carriers prevented from responding to new entrants' lower prices.
railroads dominate the market for
hauling 30,000 pounds or more over 300 miles
There neccessary conditons must be meet before a seller can practice thired degree price discrimination. The conditions are: buyers must be separated into groups or submarkets according to their elasticity of demand,the seller must process some degree of monopoly power, and
he seller must prevent transfer of sales between the groups or submarkets
The trucking industry is characterized as having:
high variable 80% and low fixed costs 20%
The trucking industry is characterized as having
high variable and low fixed cost
Deregulation of the airlines, in 1978, led to expectations that the number of carriers would increase. What has been the actual result of deregulation regarding the number of carriers in the market
increased at firstbut is now steady
on the micro level global interdependence has
increased competition
Demand for transportation at the macro is _______, while demand for transportation at the micro level is _______
inelastic, elastic
The transit time would impact which of the following cost
inventory cost
transit time would impact which of the following cost
inventory cost
the decision as to terminal location
is relatively more difficult for trucking than other modes
What is the largest single expense item for trucking firms?
labor
the size of a country's population is important because
labor is a prime factor for economic growth
One of the benefits of a railroad merger is:
less frequent interchanges between companies means faster service
What do the majority of rail movements involve?
low value, heavy commodities
the Mississippi River is regarded as an important avenue for commerce because
major transportation artery
Which is a major reason for the decline in the number of rail companies?
mergers and unification occurring in the railroad industry
useful analytical tool for the study of transportation is
modal split
What is a major reason for lower freight transportation cost?
more efficient use of equipment
Railroads are:
more energy efficient than most other modes
There are __economies of scale in the trucking industry
no major
operating ratio
operating expense/operating income
What is the major cost element of the railroad
operation and maintenance of right
Most airline revenues arise from:
passenger travel
. Mountain airline has annual operating revenues of less than $75 million with hubs in Denver and Salt Lake city. This airline would be classified in which air carrier category?
regional carrier
Effective method to reduce bullwhip effect in a supply chain
replace inventory with information
A pricing objective that aims to increase cash flow through the use of low price is referred to as
survival based
What is one of the strengths of the railroad industry?
that the railroads have large carrying capacity
what does right of eminent domain mean
the government can seize your property for public use
For freight, the usual demand unit or metric.
ton-mile
Transportation service characteristic
transit time reliability capability
What do motor carriers haul primarily?
various manufactured commodity categories
Intramodel competition is:
various modes seeking to gain market share from other modes
The Transportation Asset protection association was created to
working across transportation modes and industry sectors to reduce criminal