Mktg372 Ch14 Transportation in a Supply Chain

low-value product with low demand

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

a cross-dock function

At a train station where lines intersect, the Mumbai dabbawalas perform

longer lead times and larger minimum shipment quantities

Cheaper modes of transport typically have

low-value product and high demand

It is best to disaggregate all inventories and use an inexpensive mode of transportation for replenishment when you have a

GPS

Real time location tracking of vehicles relies on

a cross dock distribution center with milk runs

Serving a high density of customers at a long distance is best done using

a private fleet with milk runs

Serving a high density of customers at a short distance is best done using

a package carrier

Serving a low density of customers at a long distance is best done using

an LTL carrier

Serving a medium density of customers at a medium distance is best done using

third party milk runs

Serving a medium density of customers at a short distance is best done using

information technology systems

The complexity and scale of transportation makes it an excellent area within the supply chain for the use of

inventory cost

The cost of holding inventory incurred by the shipper's supply chain network is

processing cost

The cost of loading/unloading orders, as well as other processing costs associated with transportation, is considered

facility cost

The cost of various facilities in the shipper's supply chain network is

the shipper and the carrier

The key players in any transportation that takes place within a supply chain are

cross-enterprise collaboration

The most common problems in the use of IT in transportation relate to

determine transportation routes using software

The most common use of information technology in transportation is to

the routing and scheduling of deliveries

The most important operational decision related to transportation in a supply chain is

transportation

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

the shipper

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?

a flat rate result in higher use by most individuals

Which of these statements about use fees for a highway is best?

all shipments via central DC

Which transportation network design option establishes an extra layer between suppliers and retailers to store inventory and to serve as a transfer location?

direct shipping network

Which transportation network design option has the elimination of intermediate warehouses and its simplicity of operation and coordination as its major advantage?

tailored network

Which transportation network design option uses a combination of other options to reduce the cost and improve responsiveness of the supply chain?

package carriers

________ 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

air

________ carriers offer a very fast and fairly expensive mode of transportation for cargo

rail

________ typically move commodities over large distances at lower costs per unit shipped

inexpensive and inflexible transportation modes

Ignoring uncertainty in demand encourages a greater use of

They were built and/or managed by the government

In almost all countries, roads, seaports, airports, rail and canals have this in common.

perform well when everything goes as planned

Inexpensive and inflexible transportation modes tend to

the carrier

Investment decisions regarding the transportation infrastructure (rails, locomotives, trucks, airplanes, etc.) are the primary concern of

supports its competitive strategy

Managers should ensure that a firm's transportation strategy

5t + 7

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?

10t + 7

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?

5t

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?

10t

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?

is the process of combining orders across time

Temporal aggregation

both a forward and reverse logistics function

The Mumbai dabbawalas perform

carrier

The ________ is the party that moves or transports the product.

shipper

The ________ is the party that requires the movement of the product between two points in the supply chain.

high-value and low-demand product

The competent supply chain manager decided to aggregate all inventories and as required, use fast mode of transportation for filling customer orders of his

high value and high demand

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

transportation cost

The total amount paid to various carriers for transporting products to customers is

products are rarely produced and consumed in the same location

Transportation plays a key role in every supply chain because

the marginal impact on the cost to society

When infrastructure is publicly owned, it is important to price usage to reflect

truck

Which mode of transportation is the dominant form of freight transportation?

water

Which mode of transportation is the least expensive?

air

Which mode of transportation is the most expensive?

pipeline

Which mode of transportation is used primarily for petroleum and natural gas?

air

Which of the following is the fastest delivery method of transportation?