LSCM 3960 ch 10 Exam Graded A+

LSCM 3960 ch 10 Exam Graded A+ CBP is now enforcing the "48 Hour Rule". t/f - Answer- false 5. Motor carrier cost is highly variable. t/f - Answer- true Railroad's length of haul is longer than that of motor carriers. t/f - Answer- true The railroads have not shared in the growth in transportation and so do not have any capacity issues. t/f - Answer- false Nonintegrated air carriers do not supply door-to-door service. t/f - Answer- true Procuring inexpensive transportation is the major goal of supply chain managers. t/f - Answer- false Given the availability of information, transportation buying has become comparatively easy. T/f - Answer- false The growth of outsourcing has created transportation challenges. t/f - Answer- true Pipeline costs are predominantly fixed. t/f - Answer- true Intermodal growth has been flat.t/f - Answer- false The responsibly for transportation management is typically not assigned to any one management discipline in an organization. t/f - Answer- false Outsourcing transportation is a "buy" decision. t/f - Answer- true All modes of transportation provide the same basic service. t/f - Answer- true Railroads have accessibility limitations. t/f - Answer- true 15. Some companies like PepsiCo have chosen to move freight on company operated equipment, despite the fact that these private fleets cost more than for-hire carriers. t/f - Answer- false Product value is an important factor in modal selection. t/f - Answer- true Following the trend in deregulation of most transportation modes, freight rate negotiations are being decentralized. t/f - Answer- false The main strategy behind routing guides is to maintain very tight control of transportation costs. t/f - Answer- false A bill of lading can be either straight or order. t/f - Answer- true A carrier is never excused from a claim. t.f - Answer- false A key requirement for service quality monitoring is information. t/f - Answer- true KPI is another term for a shipping document. t/f - Answer- false Transportation efficiency promotes __________ in the supply chain. - Answer- Competition The distances in today's global supply chains produce - Answer- all of these -higher cost. -longer transit times. -more disruptions. Economic deregulation sparked competition among carriers in several areas. Which of these is not an area of competition? - Answer- accessibility Security legislation - Answer- has caused expense issues for carriers. Which is not a mode of transportation? - Answer- 3PL Air carriers were historically looked upon as - Answer- emergency only carriers Challenges for the trucking industry include - Answer- competition Railroads fall into a group called - Answer- natural monopolies Trade imbalances affect - Answer- water carriers Which management area in an organization does not normally have transportation responsibility? - Answer- manufactoring Terms of sale establish - Answer- when ownership and title of the goods passes from seller to buyer. Desirability refers to - Answer- characteristics that influence modal selection The main strategy behind routing guides is to - Answer- promote supply chain excellence Which of these is not a freight document - Answer- routing guide Transportation plays a key role in supply chain design, strategy development, and total cost management in three areas. - Answer- Transportation service availability, capacity, and costs influence decisions regarding the number and location of supply chain facilities. For example, many organizations attempt to avoid locating distribution facilities in the state of Florida due to transportation costs. Transportation capabilities must align with the company's goals. In its 2009 annual report, A states that it seeks to be Earth's most customer-centric company and strives to provide easy-to-use functionality, fast and reliable fulfillment, and timely customer service. To hit the targets, A needs to partner with carriers that deliver customer orders consistently and quickly, provide shipment visibility, and charge reasonable shipping rates. Intentional tradeoffs should be made between transportation and related activities (e.g., procurement, production, and inventory management) to optimize supply chain efficiency. For example, retailers can hold lower safety stock levels if the cost of more frequent, faster deliveries does not exceed the inventory carrying cost savings. Similarly, manufacturers can employ lean production strategies if lot sizes can be minimized without creating excessive transportation costs. There are five primary modes of transportation and an intermodal transportation model - Answer- motor carriers, railroads, air carriers, water, pipeline motor carriers (primary mode of transportation) - Answer- Motor carriage is the most widely used mode of transportation in the domestic supply chain, ranging from the smallest delivery van to the largest tractor-trailer combination. The sophisticated U.S. highway network permits trucks to reach all points of the country. This accessibility combined with the industry's excellent service capabilities, has made trucking the mode of choice for high-value, time-sensitive goods. The trucking industry is highly competitive and made up of 502,000 private, for hire, and other U.S. interstate motor carriers. There are no significant cost economies of scale that make it impossible for small carriers to compete. Most expenses are incurred as the result of moving freight; thus, trucking is a high-variable-cost, low-fixed-cost business. Much of the freight moved by the trucking industry is regional in nature, moving within a 500-mile radius of the origin. The trucking industry is comprised of for-hire and private fleet operations. Private fleets primarily transport freight that is owned by the organization that is operating the trucks. Motor carriers face daunting challenges in the future—rising costs, labor issues, and competition. Trucking companies are able to pass along rising fuel and insurance costs during economic expansions, but cannot always do so if capacity exceeds demand. A shortage of truck drivers will only become more serious as current drivers retire. Finally, competition will remain fierce, with customers expecting near-perfect performance. railroads (primary mode of transportation) - Answer- Railroads transport more than 1.9 billion tons of freight annually despite a lack of direct accessibility to all parts of the supply chain. Rail service is perceived as being a slow, inflexible, and inconsistent mode. The industry is dominated by seven Class I railroads (revenues in excess of $379 million). None of these major rail carriers services the entire country by itself; they work together via interline agreements to provide coast-to-coast rail service. This mode requires a large investment in terminals, equipment, and trackage to begin operation; the accompanying huge capacity allows railroads to be a decreasing cost industry. As output (ton-miles) increases, the average per-unit production cost decreases. Rail transportation is primarily used for the long-distance movement of low value raw materials and manufactured products but they also handle some high-value goods, primarily automobiles and intermodal containers filled with imported finished goods. In fact, intermodal volume is rising faster on a percentage basis than traditional rail freight. The rail industry faces a number of challenges moving forward. Capacity is an ongoing concern. With the track infrastructure remaining largely unchanged, additional freight, crews, and equipment cannot dramatically impact system delays.