Final Exam

To determine the freight class for shipment, must identify certain factors:

- Density - Space in relation to its weight. -Stowing - Ability to load other freight in the same trailer - Handling - How difficult it is to actually handle the freight -liability (value and risk) - potential claims from damage or loss

Air

- It is the fastest mode of transportation for longer distances. - Most expensive - fixed cost is 2nd lowest - variable costs are extremely high - ideal for high cost to weight ration. It cannot cary heavy or bulky items.

Truck

- Most flexible mode of transportation ( 66% of total freight spend) - Carries > 80% of U.S. Freight - Carries up to 45K lbs

Key benefits of motor carriers (truck):

- Speed of transit - ability to operate door-to-door

Water

- it is inexpensive and economical considering how much volume a larger container ship can carry. - very slow and inflexible - "slow-streaming" to improve fuel efficiency and reduce Caron emissions.

Pipeline

- lowest per unit cost for transportation. -Most reliable form of transportation. - no traffic or congestions or weather related issued to deal with

Common transportation documents include all of the following EXCEPT?

1) Bill of Lading 2) Freight Bill 3) Shipment Manifest

Objectives of Basic Warehousing is to?

1) Efficiently receive inventory 2) store it as required 3) assemble it into complete orders 4) Make a customer shipment

Control responsibilities in Transportation include:

1) Tracing 2) Expediting 3) Tracking

The total cost of logistics accounts for what percentage?

60%

Intermodal

A combination of the above modes.

Which mode of transportation has extremely high variable costs but relatively low fixed costs?

Air

A carrier having their own tractors and trailers and responsible for maintenance of all their own equipment is known as?

Asset based

Which material handling system is characterized as having the highest fixed cost, the lowest variable and labor costs, and also having low flexibility?

Automated

What is the common term used to describe when a warehouse receives a single large shipment and arranges for delivery to multiple destinations?

Break-Bulk

Which warehouse ownership type allows a user company to benefit by maintaining control over warehouse activities, while leveraging warehousing expertise from the provider?

Contracted

Less than Container Load (LCL)

Cost based on whichever is greater

Which of the following terms represents the concept of loading a vehicle that results in shipping "full" without reaching the weight limit?

Cube out

Storage for inventory held in excess of period for normal replenishment is known as what?

Extended storage

A conveyor is an example of automated material handling equipment.

False

Pallet Pools are designated areas where pallets are physically stored.

False

Private warehousing offers significant advantages over public and contract warehousing.

False

Reverse Logistics is defined only as returning product following its useful life with the objective of decomposing it into component materials so they can effectively be reused.

False

Stowability is based on the combination of weight and volume.

False

Strategic warehousing provides the service benefits of; consolidation & break-bulk, sorting, seasonal storage, and reverse logistics

False

The term "Drayage" means holding a container at the port beyond a certain time limit and incurring a penalty charge such as a daily rent after the free time ends.

False

Exempt carriers (Companies transporting freight)

Person or company specializing in services or transporting commodities exempt from regulations by the Interstate Commerce Act.

Common carriers (Companies transporting freight)

Person or company who transports freight for a fee that can be hired by anyone to transport goods.

Which warehouse ownership type can be described as a company who owns a warehouse and provides storage and related warehouse functions to companies on a short or long-term basis?

Public

Which mode of transportation has the greatest capability, i.e., ranked #1 in capability?

Rail

What is the characteristic of rail?

Rail is slow and inflexible but it has the most capability - Competes for transportation when the distance is long and shipments are heavy or bulky. -High fixed costs and low variable costs.

Material handling systems require different amounts of labor and capital investments. Which of the following is NOT a type of material handling system?

Semi-formal

Less-than-truckload (LTL) carriers operate under under the premise of?

Sharing the trailers capacity among multiple shippers.

Unitization is?

The process of grouping cartons into unit loads

How does transportation negatively impact us?

Through traffic and congestion. It contributes to noise and air pollution.

What is the largest consumers of oil and gas?

Transportation

Less-than-truckload (LTL)

Transportation of a relatively small freight which does not require the space of an entire truck.

2. NVOCC stands for "Non-Vessel Operating Common Carrier"

True

Auditing of selected inventory on a cyclic schedule is known as cycle counting

True

Containerization was a major driving force in expanding global trade.

True

Freight Forwarders are businesses that consolidate small shipments from various customers into bulk shipment for a common carrier to transport.

True

Material Handling Equipment (MHE): equipment is used for the movement, storage, protection, consumption, and disposal of materials within a facility or site.

True

One of the advantages of using wood pallets is the relatively low cost.

True

The main function of a warehouse in the traditional view is to store materials and products.

True

Transportation accounts for more than 60% of the total cost of logistics

True

double stack cars

a form of transport where intermodal containers are stacked two high on railroad cars

Unit trains

a train transporting a single commodity.

Deregulation

encourages competition and allows prices to adjust as demand and negotiations dictate.

Restrictive element

in-transit inventory is "captive", meaning that it is typically inaccessible during transportation.

RF Wireless, Pick-to-Light, and Voice-Picking are various forms of what type of material handling system?

information - directed

Flexible Element

inventory can be "diverted" during shipment to a new destination if necessary.

Full Container Load (FCL)

is a cost per container.

Private carriers (Companies transporting freight)

person or company that transports its own cargo as a part of a business that produces, uses, sells, or buys the cargo that is being hauled.

Contract carriers (Companies transporting freight)

person or company who transports freight under contract to one or limited number of shippers.

Carrier

refers to the company that transports the goods

Mode

refers to the way in which goods are transported. 1) truck 2) rail 3) air 4) pipeline 5)water

stowage planning

the act of allocation space to containers on board a container ship in the order of discharge ports.