Testbank Chapter 14 GSCM

Supply Chain Management, 6e, Global Edition (Chopra/Meindl)
Chapter 14 Transportation in a Supply Chain

14.1 True/False Questions

1) Transportation plays a key role in every supply chain because products are usually produced
and consumed in the same location.
Answer: FALSE
Diff: 1
Topic: 14.1 The Role of Transportation in a Supply Chain
AACSB: Application of knowledge
Objective: LO 14.1: Understand the role of transportation in a supply chain.

2) A distributor makes investment decisions regarding the transportation infrastructure and then
makes operating decisions to try to maximize the return from these assets.
Answer: FALSE
Diff: 3
Topic: 14.1 The Role of Transportation in a Supply Chain
AACSB: Application of knowledge
Objective: LO 14.1: Understand the role of transportation in a supply chain.

3) A carrier uses transportation to minimize the total cost (transportation, inventory, information,
and facility) while providing an appropriate level of responsiveness to the customer.
Answer: FALSE
Diff: 3
Topic: 14.1 The Role of Transportation in a Supply Chain
AACSB: Application of knowledge
Objective: LO 14.1: Understand the role of transportation in a supply chain.

4) Transportation is a significant component of the costs incurred by most supply chains.
Answer: TRUE
Diff: 1
Topic: 14.1 The Role of Transportation in a Supply Chain
AACSB: Application of knowledge
Objective: LO 14.1: Understand the role of transportation in a supply chain.

5) The vehicle-related cost is incurred whether the vehicle is operating or not and is considered
fixed for short-term operational decisions by the carrier.
Answer: TRUE
Diff: 2
Topic: 14.1 The Role of Transportation in a Supply Chain
AACSB: Application of knowledge
Objective: LO 14.1: Understand the role of transportation in a supply chain.




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,6) A carrier's decisions are affected by the prices that the market will bear, but not the
responsiveness it seeks to provide its target segment.
Answer: FALSE
Diff: 2
Topic: 14.2 Modes of Transportation and Their Performance Characteristics
AACSB: Application of knowledge
Objective: LO 14.2: Evaluate the strengths and weaknesses of different modes of transportation.

7) Transportation cost depends on the prices offered by different carriers and the extent to which
the shipper uses inexpensive and slow, or expensive and fast, means of transportation.
Answer: TRUE
Diff: 1
Topic: 14.2 Modes of Transportation and Their Performance Characteristics
AACSB: Application of knowledge
Objective: LO 14.2: Evaluate the strengths and weaknesses of different modes of transportation.

8) Rail is the dominant mode of freight transportation in the United States and accounts for over
75 percent of the nation's freight bill.
Answer: FALSE
Diff: 2
Topic: 14.2 Modes of Transportation and Their Performance Characteristics
AACSB: Application of knowledge
Objective: LO 14.2: Evaluate the strengths and weaknesses of different modes of transportation.

9) Quasi-market prices for transportation infrastructure result in higher prices at peak locations
and times and lower prices otherwise.
Answer: TRUE
Diff: 2
Topic: 14.3 Transportation Infrastructure and Policies
AACSB: Application of knowledge
Objective: LO 14.3: Discuss the role of infrastructure and policies in transportation.

10) A milk run is a route in which a truck either delivers product from a single supplier to
multiple retailers or goes from multiple suppliers to a single retailer.
Answer: TRUE
Diff: 1
Topic: 14.4 Design Options for a Transportation Network
AACSB: Application of knowledge
Objective: LO 14.5: Identify trade-offs that shippers need to consider when designing a
transportation network.




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, 11) Milk runs reduce outbound transportation costs by consolidating large shipments.
Answer: FALSE
Diff: 1
Topic: 14.4 Design Options for a Transportation Network
AACSB: Application of knowledge
Objective: LO 14.4: Identify the relative strengths and weaknesses of various transportation
network design options.

12) The most important operational decision related to transportation in a supply chain is the
routing and scheduling of deliveries.
Answer: TRUE
Diff: 2
Topic: 14.4 Design Options for a Transportation Network
AACSB: Application of knowledge
Objective: LO 14.5: Identify trade-offs that shippers need to consider when designing a
transportation network.

13) The mode of transportation that results in the lowest transportation cost will lower total costs
for a supply chain.
Answer: FALSE
Diff: 2
Topic: 14.4 Design Options for a Transportation Network
AACSB: Application of knowledge
Objective: LO 14.5: Identify trade-offs that shippers need to consider when designing a
transportation network.

14) Ignoring inventory costs when making transportation decisions can result in choices that
worsen the performance of a supply chain.
Answer: TRUE
Diff: 2
Topic: 14.4 Design Options for a Transportation Network
AACSB: Application of knowledge
Objective: LO 14.5: Identify trade-offs that shippers need to consider when designing a
transportation network.

15) A dabba uses the Mumbai railway system to carry about 40 lunches each day.
Answer: FALSE
Diff: 2
Topic: 14.5 Mumbai Dabbawalas: A Highly Responsive Distribution Network
AACSB: Application of knowledge
Objective: LO 14.5: Identify trade-offs that shippers need to consider when designing a
transportation network.




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