LSCM chapter 10 Questions and Answers

LSCM chapter 10 Questions and Answers Challenges for the trucking industry include a. competition. b. limited equipment options c. oversupply of qualified drivers d. lack of flexibility a. competition. Economic deregulation sparked competition among carriers in several areas. Which of these is not an area of competition? a. accessibility b. performance c. services d. pricing a. accessibility Piggyback is a form of intermodal transportation that primarily involves the following two transport modes: 1. truck and rail 2. water and pipeline 3. air and water 4. air and rail 1. truck and rail Which is NOT a mode of transportation? 1. truck 2. air 3. 3PL 4. pipeline 3. 3PL The distances in today's global supply chains produce a. higher cost b. longer transit time c. more disruptions d. all of these d. all of these Air carriers were historically looked upon as a. having equipment shortages b. emergency only carriers c. a fringe participant d. insignificant b. emergency only carriers The transportation activity adds _______ utility to products. 1. form and place 2. possession 3. time 4. time and place 5. all of the above utilities would be added by transportation 4. time and place Which of the following would NOT be a typical transportation management function? 1. auditing freight bills 2. selecting the best modes of transportation 3. keeping track of inventory in the warehouse(s) 4. negotiating rates with carriers 5. choosing specific carriers 3. keeping track of inventory in the warehouse(s) Both economic and safety regulation of the US transportation industry have been declining since the onset of deregulation in the late 1970s. 1. True 2. False 2. False Security legislation a. has created unnecessary restrictions of legitimate trade b. has caused expense issues for carriers c. has caused some firms to stop offshore sourcing d. has not had much impact on transportation carriers b. has caused expense issues for carriers Railroads fall into a group called a. service challenged carriers b. nonintegrated carriers c. intermodal operators d. natural monopolies d. natural monopolies Transportation efficiency promotes __________ in the supply chain. a. competition b. intermodal demand c. KPIs d. capacity a. competition Jim Bob Airlines has one 65 seat plan. On its last five flights it had 43 passengers from MSY to DFW, 46 passengers from DFW to OKL, 43 passengers from OKL to TUL, 49 passengers from TUL to FWB, and 33 passengers from FWB to MSY. For the last five flights, what was the load factor? (Make sure your answer is accurate to one decimal place) Correct 65.8 ± 0% Jim Bob Airlines has one 66 seat plan. On its last five flights it had 46 passengers from MSY to DFW, 42 passengers from DFW to OKL, 44 passengers from OKL to TUL, 31 passengers from TUL to FWB, and 46 passengers from FWB to MSY. For the last five flights, what was the load factor? (Make sure your answer is accurate to one decimal place) Correct 63.3 ± 0% Which of these is NOT a freight document? a. routing guide b. freight bill c. freight claim form d. bill of lading a. routing guide In selecting a transport mode or carrier, the most important factor for most shippers would be: 1. lowest freight rate 2. quality of carrier sales force 3. satisfactory insurance coverage 4. on-time pickups and deliveries 5. carrier reputation 4. on-time pickups and deliveries The main strategy behind routing guides is to a. promote supply chain excellence b. select between modes c. comply with or enforce FOB terms d. maintain exact control a. promote supply chain excellence An organization selling its products FOB destination holds the title to the goods until: a. products reach the customer's facility b. the customer receives the goods into their inventory system c. picked up by the trucker d. the customer is invoiced a. products reach the customer's facility Which management area in an organization does not normally have transportation responsibility? a. procurement b. marketing c. logistics d. manufacturing d. manufacturing For most shippers, in the selection of a specific transport mode or carrier, consistency of service is much more important than time-in-transit. 1. True 2. False 1. True Desirability refers to a. ride quality b. performance reporting and scorecarding c. characteristics that influence modal selection d. attractive packaging choices c. characteristics that influence modal selection Which of the following would be considered a nontraditional service being offered by carriers? 1. rating (pricing) 2. contract carriage 3. facility location analysis 4. pickup and delivery 5. claims handling 3. facility location analysis The "value-of-service" pricing approach establishes a lower limit of transportation prices or rates. 1. True. 2. False. False When a traffic manager reduces the number of carriers used, market power is increased. 1. True. 2. False. True When a traffic manager increases the number of carriers used, market power is increased. 1. True. 2. False. False Benefits to a carrier of improved routing and scheduling include all of the following EXCEPT: 1. reduced capital investment in equipment 2. lessening of competition 3. lower transportation costs 4. greater vehicle utilization 5. higher levels of customer service 2. lessening of competition Transportation terms of sale establish a. who handles freight claims b. when ownership and title of the goods passes from seller to buyer c. which transportation mode must be used d. what must be shown on the bill of lading. b. when ownership and title of the goods passes from seller to buyer