SCMT 3643 EXAM 1 QUESTIONS WITH
VERIFIED ANSWERS. A+ GRADE
2025/2026.
When products are shipped to a free trade zone, custom tariffs have to be paid when... -
ANS The goods enter the market
What two utilities link Marketing and Logistics? - ANS Time and Place
In class, we talked about the cost leverage in logistics. The idea of cost leverage means, for
example, that a company with a Net Profit of 10%, $2.50 of cost savings generates the same
profit as... - ANS a $25 increase in sales the math is (1/.10=10*2.50 or 2.50./10)
In which city is the largest cargo airport in the world located? - ANS Hong Kong, China
Which mode of transportation would a company most likely use if they were shipping fresh
products and high value goods? - ANS Air
The characteristics listed below are an example of which type of carrier?
i. consolidating smaller shipments to save you time and money
ii. detailed knowledge of the rules and regulations that your business must comply with
iii. acting as an intermediary when transporting to a new territory
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,iv. arranging for and operating several different transport methods for a shipment as required -
ANS Freight Forwarder
Which one of the "Four P's" of Marketing is interface with Logistics? - ANS Place
Which of the following is not a factor for why charter airplanes are hired to transport freight
compared to traditional air-freighters? - ANS These are all the reason they are (P.P) - The
goods do not fit into a regular freighter because there are too heavy and/or too large.
- Goods need to be delivered to a location not serviced by regular
routes.
- Goods need to be delivered to an airport where the runway is substandard, or the cargo
handling facilities are poor.
How are the fixed cost, lead time, flexibility, and unit cost associated with motor (truck) mode
of transportation? - ANS Low fixed, high variable, short lead time, high flexibility
What are logistics clusters? - ANS Geographical concentrations of companies in the
transportation and distribution of goods (from Yossi Sheffi)
What is a free trade zone? - ANS They are a geographic area where goods may be landed,
handled, manufactured or reconfigured, and reexported without the intervention of the
customs authorities.
In air transportation, a wet lease covers what areas?
i. Fuel
ii. Flight Crew
iii. Insurance
iv. Maintenance - ANS All of the above are covered by the owner/provider; only thing the
customer has to cover are costs like airport fees
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Which of the following is the best example of a Land Bridge? - ANS Land bridges are the use
of a strip of land & alternative mode of transportation. These are used as opposed to using a
canal or circumventing a continent.
In the Transportation Mode Selection Chart covered in class, fixed cost has an inverse
relationship with what category? - ANS Variable Unit Cost
With higher production costs in Asia than in previous years, many companies are coming back
to their countries of origins for production purposes. This is called? - ANS Re-shoring
For a product that is very time sensitive, what would be the best mode of transportation? -
ANS Air
What is NOT a characteristic of a logistics hub? - ANS Logistic hub-- logistic clusters that are:
1. located in favorable geographic locations
2. facilitates transportation
3. warehouse
4. perform custom operations
-it enables interaction among actors that are needed to play a part in the international flow of
products from point of origin to point of consumption
Mexico is becoming more and more of a manufacturing source for the United States. What is
the primary reason for this? - ANS Labor costs in Asia are rising steadily. By relocating
facilities to Mexico, companies can save on transportation costs.
Economies of scale happen when you make more to save on individual unit cost. What mode of
transportation is best for shipping massive amounts of product for a cheap price? -
ANS Water or Rail?
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
VERIFIED ANSWERS. A+ GRADE
2025/2026.
When products are shipped to a free trade zone, custom tariffs have to be paid when... -
ANS The goods enter the market
What two utilities link Marketing and Logistics? - ANS Time and Place
In class, we talked about the cost leverage in logistics. The idea of cost leverage means, for
example, that a company with a Net Profit of 10%, $2.50 of cost savings generates the same
profit as... - ANS a $25 increase in sales the math is (1/.10=10*2.50 or 2.50./10)
In which city is the largest cargo airport in the world located? - ANS Hong Kong, China
Which mode of transportation would a company most likely use if they were shipping fresh
products and high value goods? - ANS Air
The characteristics listed below are an example of which type of carrier?
i. consolidating smaller shipments to save you time and money
ii. detailed knowledge of the rules and regulations that your business must comply with
iii. acting as an intermediary when transporting to a new territory
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,iv. arranging for and operating several different transport methods for a shipment as required -
ANS Freight Forwarder
Which one of the "Four P's" of Marketing is interface with Logistics? - ANS Place
Which of the following is not a factor for why charter airplanes are hired to transport freight
compared to traditional air-freighters? - ANS These are all the reason they are (P.P) - The
goods do not fit into a regular freighter because there are too heavy and/or too large.
- Goods need to be delivered to a location not serviced by regular
routes.
- Goods need to be delivered to an airport where the runway is substandard, or the cargo
handling facilities are poor.
How are the fixed cost, lead time, flexibility, and unit cost associated with motor (truck) mode
of transportation? - ANS Low fixed, high variable, short lead time, high flexibility
What are logistics clusters? - ANS Geographical concentrations of companies in the
transportation and distribution of goods (from Yossi Sheffi)
What is a free trade zone? - ANS They are a geographic area where goods may be landed,
handled, manufactured or reconfigured, and reexported without the intervention of the
customs authorities.
In air transportation, a wet lease covers what areas?
i. Fuel
ii. Flight Crew
iii. Insurance
iv. Maintenance - ANS All of the above are covered by the owner/provider; only thing the
customer has to cover are costs like airport fees
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Which of the following is the best example of a Land Bridge? - ANS Land bridges are the use
of a strip of land & alternative mode of transportation. These are used as opposed to using a
canal or circumventing a continent.
In the Transportation Mode Selection Chart covered in class, fixed cost has an inverse
relationship with what category? - ANS Variable Unit Cost
With higher production costs in Asia than in previous years, many companies are coming back
to their countries of origins for production purposes. This is called? - ANS Re-shoring
For a product that is very time sensitive, what would be the best mode of transportation? -
ANS Air
What is NOT a characteristic of a logistics hub? - ANS Logistic hub-- logistic clusters that are:
1. located in favorable geographic locations
2. facilitates transportation
3. warehouse
4. perform custom operations
-it enables interaction among actors that are needed to play a part in the international flow of
products from point of origin to point of consumption
Mexico is becoming more and more of a manufacturing source for the United States. What is
the primary reason for this? - ANS Labor costs in Asia are rising steadily. By relocating
facilities to Mexico, companies can save on transportation costs.
Economies of scale happen when you make more to save on individual unit cost. What mode of
transportation is best for shipping massive amounts of product for a cheap price? -
ANS Water or Rail?
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
