Chapter 9, OPSM

Carriers for RF waves are air, copper wire and fiberoptic cable.

True

Supply's role in logistics may include direct functional responsibility and acquisition of logistics services.

True

Transportation costs increase as distance, quantity, and speed increase.

True

A transportation strategy should include consideration of: a. safety on the ground, in the air and on water. b. environmental factors such pollution. c. consolidation of freight. d. alternative transport modes. e.all of the above.

e.all of the above.

When contracting with logistics services providers, supply managers are limited by Federal regulations in their use of standard supply techniques such as negotiation, systems contracts, and supplier evalaution.

False

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

True

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

False

One of the advantages of shipping by air carrier is that it is inexpensive compared to other modes of transportation.

False

One of the disadvantages of intermodal frieght services is higher damage rates due to more handling.

False

Third-party logistics service providers are carriers that always own assets (trucks, airplanes, railcars) and act as intermediaries between trading partners, for example, shippers and carriers.

False

The selection of the FOB point is important to the purchaser, for it determines: a. who pays the carrier. b. when legal title to goods being shipped passes to the buyer. c. who is responsible for preparing and pursuing loss or damage claims. d. who routes the freight. e. all of the above.

e. all of the above.

Outsourcing or using third party logistics services has: a. remained flat due to increased challenges of international logistics. b. become increasingly popular with small organizations, but not large ones. c. declined in popularity due to declining service provider performance. d. declined as transportation has been re-regulated. e. increased as organizations focus on core competencies.

e. increased as organizations focus on core competencies.

Transportation costs decrease as distance, quantity, and speed increase.

False

The bill of lading is the key document in the movement of goods.

True

A mode of transportation is any means of conveyance (truck, auto, taxi, bus, railroad, ship, airplane) of people or property.

False

A mode of transportation is any means of conveyance of people or property, but not information.

False

Economic, safety and environmental regulations have been eliminated for the most part for all modes of transportation.

False

Transportation rates: a. are established primarily through negotiation. b. are established primarily by government regulation. c. are lower for LTL than TL shipments. d. typically decrease as delivery speed increases. e. typically do not change when smaller shipments are consolidated.

a. are established primarily through negotiation.

When selecting freight carriers, buyers are most concerned with: a. best overall value. b. intermodal capabilities. c. supply chain and delivery speed. d. geographic coverage. e. shipment security.

a. best overall value.

Demurrage charges: a. may indicate poor delivery scheduling on the part of the buying organization. b. are never legitimate because delays are typically caused by the carrier's actions. c. are insignificant and can easily be justified in the buying organization. d. discourage the buyer from using a particular carrier. e. growing because of the lengthy delays in most supply chains.

a. may indicate poor delivery scheduling on the part of the buying organization.

Fuel efficiency and energy consumption considerations: a. have no impact on transportation strategy in most organizations. b. are a factor in transportation strategy development in many organizations. c. encourage shippers to focus on increasing LTL shipments. d. lead to disintermediation in the supply chain. e. result in lower use of third party logistics providers.

b. are a factor in transportation strategy development in many organizations.

When assessing the quality of a telecommunications provider, a key indicator of superior quality to a competitor is the ability to: a. own and operate the largest network of land and sea cable. b. compress more high resolution information on the same bandwidth. c. have the leanest network of repeater stations. d. have the most extensive intermodal operations. e. own radio frequencies with greater range.

b. compress more high resolution information on the same bandwidth.

Over the past two decades, logistics costs as a percent of the U.S. gross domestic product (GDP) have: a. been extremely volatile due to international events. b. increased due to transportation deregulation and technology investments. c. declined due to deregulation, technology investment, and e-commerce. d. doubled due to growth in international sourcing. e. remained constant due to a stagnant global economy.

c. declined due to deregulation, technology investment, and e-commerce.

One of the advantages of integrated carriers (truck-air) like UPS and Federal Express is that they: a. utilize commercial airlines for air service. b. outsource much of their air network.. c. own their own aircraft. d. rely more on air than ground transportation. e. outsource much of their ground network.

c. own their own aircraft.

With deregulation of the transportation industry and the development of intermodal service, the focus for the transport buyer is: a. selecting the best mode of transport. b. procuring logistics services at the lowest rates. c. the carrier's ability to handle multiple parts of the logistics process. d. bringing all logistics activities under the management of the VP of Supply. e. shifting responsibility for shipper-carrier relationships to the carrier.

c. the carrier's ability to handle multiple parts of the logistics process.

Decreasing logistics costs may be attributed to: a. deregulation of the transportation sector. b. technology advances and e-commerce. c. an increase in global supply chains. d. a and b e. b, and c.

d. a and b

Organizations operating under a just-in-time system, require: a. international coverage. b. heightened security. c. lowest price. d. on-time deliveries. e. real-time package tracking.

d. on-time deliveries.

Organizations operating under a just-in-time system, prefer to ship by: a. rail. b. same day air. c. next-day air. d. truck. e.intermodal carriers.

d. truck.

Integrated carriers (truck-air) like UPS and Federal Express are able to capture a larger market share because they: a. utilize their own aircraft. b. have extensive ground networks. c. have accurate, real-time tracking systems. d. b and c. e. a, b and c.

e. a, b and c.

Supply's involvement in transportation decisions is: a. insignificant and declining due to the growth of supply chain management. b. growing due to the increase in the number of railroads and trucking companies throughout the world.. c. growing due to the deterioration of roads, bridges, and highways in North America. d. declining due to the growth of outsourcing transportation decisions to third party logistics providers. e. growing in terms of direct functional responsibility and cross-functional efforts to devise solutions with logistics services providers.

e. growing in terms of direct functional responsibility and cross-functional efforts to devise solutions with logistics services providers.

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

True

Radio frequency (RF) waves are a mode of transportation for information and carriers for RF waves are air, copper wire and fiberoptic cable.

True

Radio frequency (RF) waves are a mode of transportation for information.

True

Fuel efficiency and energy consumption considerations: a. have no impact on transportation strategy in most organizations. b. are a factor in transportation strategy development in many organizations. c. encourage shippers to focus on increasing LTL shipments. d. lead to disintermediation in the supply chain. e.result in lower use of third party logistics providers.

b. are a factor in transportation strategy development in many organizations.

Transportation rates: a. are lower for LTL than TL shipments. b. are established primarily through negotiation. c. are established primarily by government regulation. d. typically decrease as delivery speed increases. e. typically do not change when smaller shipments are consolidated.

b. are established primarily through negotiation.

Telecommunication routes are: a. practically unlimited because of the superiority of hardware and software. b. practically unlimited because radio frequency waves have unlimited range. c. practically unlimited because of few land or sea restraints to laying cable. d. very limited because network and distribution costs are high. e. very limited because most countries severely restrict land and sea cables.

c. practically unlimited because of few land or sea restraints to laying cable.