D470 BUS 3900
Transportation, Logistics, and
Distribution
Objective Assessment Guide
Q&A
2024
,1. Multiple Choice: What is the primary purpose of transportation
management systems (TMS) in logistics?
a) Cost reduction
b) Route optimization
c) Inventory tracking
d) Customer service improvement
Answer: b) Route optimization
Rationale: TMS is primarily used to optimize the planning and execution
of physical movements of goods.
2. True/False: Cross-docking eliminates the need for storage facilities in a
supply chain.
Answer: True
Rationale: Cross-docking involves unloading materials from an incoming
vehicle and loading them directly onto outbound vehicles, with little or
no storage in between.
3. Fill-in-the-Blank: The ________ effect explains how small changes in
consumer demand can cause large variations in orders placed upstream.
Answer: Bullwhip
Rationale: The bullwhip effect refers to the phenomenon where small
shifts in demand at the retail level cause progressively larger shifts in
demand at the wholesale, distributor, manufacturer, and raw material
supplier levels.
, 4. Multiple Choice: Which of the following is not a mode of
transportation in logistics?
a) Rail
b) Air
c) Sea
d) Pipeline
e) Teleportation
Answer: e) Teleportation
Rationale: Teleportation is not a feasible mode of transportation in
logistics as of current technology.
5. True/False: Third-party logistics providers (3PLs) are companies that
specialize in integrated operation, warehousing, and transportation
services that can be scaled and customized to customers' needs based on
market conditions.
Answer: True
Rationale: 3PLs offer these comprehensive services to manage parts or
all of a company's supply chain.
6. Fill-in-the-Blank: In logistics, the term 'last mile' refers to the final step
of the delivery process where the goods reach the ________.
Answer: End customer
Transportation, Logistics, and
Distribution
Objective Assessment Guide
Q&A
2024
,1. Multiple Choice: What is the primary purpose of transportation
management systems (TMS) in logistics?
a) Cost reduction
b) Route optimization
c) Inventory tracking
d) Customer service improvement
Answer: b) Route optimization
Rationale: TMS is primarily used to optimize the planning and execution
of physical movements of goods.
2. True/False: Cross-docking eliminates the need for storage facilities in a
supply chain.
Answer: True
Rationale: Cross-docking involves unloading materials from an incoming
vehicle and loading them directly onto outbound vehicles, with little or
no storage in between.
3. Fill-in-the-Blank: The ________ effect explains how small changes in
consumer demand can cause large variations in orders placed upstream.
Answer: Bullwhip
Rationale: The bullwhip effect refers to the phenomenon where small
shifts in demand at the retail level cause progressively larger shifts in
demand at the wholesale, distributor, manufacturer, and raw material
supplier levels.
, 4. Multiple Choice: Which of the following is not a mode of
transportation in logistics?
a) Rail
b) Air
c) Sea
d) Pipeline
e) Teleportation
Answer: e) Teleportation
Rationale: Teleportation is not a feasible mode of transportation in
logistics as of current technology.
5. True/False: Third-party logistics providers (3PLs) are companies that
specialize in integrated operation, warehousing, and transportation
services that can be scaled and customized to customers' needs based on
market conditions.
Answer: True
Rationale: 3PLs offer these comprehensive services to manage parts or
all of a company's supply chain.
6. Fill-in-the-Blank: In logistics, the term 'last mile' refers to the final step
of the delivery process where the goods reach the ________.
Answer: End customer
