Supply Chain: Chapter 9 Questions

Because air transport is so expensive the best cargo candidates for air shipment are products with a high cost to weight ratio. A. True B. False

A. True

FOB destination requires that the supplier legally retain ownership of the product being shipped until it reaches the destination; whereas with FOB origination the buyer takes ownership immediately upon shipment. A. True B. False

A. True

Private warehouses refer to warehouses that are owned by the company that also owns the goods being stored. A. True B. False

A. True

The term "private warehouse" refers to warehouses that are owned by the company that also owns the goods being stored. A. True B. False

A. True

The acts of receiving shipments, breaking down shipments, repackaging shipments, and distributing components to a manufacturing location or finished products to customers by a distribution center is referred to as? A. Piggy backing B. Cross docking C. Transshipping D. Customs Brokering

B. Cross Docking

A 4PL, commonly referred to as a lead logistics provider, is a trucking company that also provides tracking services. A. True B. False

B. False

A small LTL shipment that originates on a truck in Los Angeles and is moved to Phoenix where it is unloaded and put onto another truck for final shipment to Denver would be considered an intermodal shipment since it utilizes more than one vehicle during shipment. A. True B. False

B. False

Transportation regulation and deregulation both have their supporters. Proponents of regulation consider it to be good since it encourages competition and allows price negotiations. A. True B. False

B. False

Which of the following modes of cargo transport can be characterized as being the most inexpensive and very slow, yet good for transporting very heavy goods a long-distance? A. Air carriers B. Rail carriers C. Water carriers D. Motor carriers

C. Water Carriers

The transfer of goods from an inbound carrier to an outbound carrier, without the goods being put away into storage is known as?

Cross Docking

Which of the following is NOT consistent with a decentralized warehousing system? A. Higher safety stocks required B. Shorter lead times C. Lower transportation fees D. Lower total operating costs

D. Lower total operating costs

Which of the following carriers typically transports goods for the company that owns the carrier? A. Common carrier B. Exempt carrier C. Contract carrier D. Private carrier

D. Private Carrier