Test Database

Chapter 13 – Transportation Management

True or False1. Transportation plays a key role in product distribution because products are

usually produced and consumed in the same location.

a. True

b. False

2. 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.

a. True

b. False

3. Trip-related cost depends on the length and duration of the trip but is independent of the quantity shipped.

a. True

b. False

4. 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.

a. True

b. False

5. Railroads are the dominant mode of transportation in the United States and account for more than 75 percent of the nation’s freight bill.

a. True

b. False

6. By aggregating inventory in one central location, a business will decrease transportation cost.

a. True

b. False

7. Tailored transportation is the use of different transportation networks and modes based on customer and product characteristics.

a. True

b. False

8. Optimally, the aggregate unit load of a shipment should consume all available vehicle capacity.

a. True

b. False

9. A critical advantage of rail transport is its ability to provide supply-point-to-supply-point service.

a. True

b. False

10. As distance increases, transport variable costs can be spread over more miles.

a. True

b. False

Multiple Choice

11. Transportation plays a key role in channel logistics management because

a. Products are normally produced and consumed in the same location.

b. Products are rarely produced and consumed in the same location.

c. The cost of transportation is a minor element in logistics management.

d. Transportation plays a minor role in logistics strategy.

12. Which of the following is a serious drawback of water transport?

a. Limited accessibility

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b. High cost

c. Port requirements

d. Use of containers

13. Which of the following activities would all be included in a traffic department?

a. Rating shipments, handling freight claims, preparing documentation

b. Preparing documentation, selecting carriers, picking customer orders

c. Tracking shipments, handling freight claims, delivering goods

d. Tracking shipments, packing orders for delivery, preparing documentation

14. The party that requires the movement of the product between two points in the channel network is?

a. The supplier.

b. The manufacturer.

c. The carrier.

d. The shipper.

15. The price of labor and fuel incurred for each trip independent of the quantity transported is included in

a. Vehicle-related costs.

b. Fixed operating cost.

c. Trip-related cost.

d. Overhead cost.

16. Which mode of transportation is the most expensive?

a. Air

b. Motor

c. Railroad

d. Water

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e. Pipeline

17. Cheaper modes of transportation typically are characterized by

a. Shorter lead times and smaller minimum shipment quantities.

b. Shorter lead times and larger minimum shipment quantities.

c. Longer lead times and smaller minimum shipment quantities.

d. Longer lead times and larger minimum shipment quantities.

18. One of the major problems with operating a private fleet is solving the problem of

a. Deadhead.

b. Deadweight.

c. Payload.

d. Freight consolidation.

19. The transportation participant that ships the goods is called the

a. Consignor.

b. Carrier.

c. Consignee.

d. Service agent.

20. The fee charged by railroad companies for customers’ use of railcars as storage is termed

a. Detention.

b. Demurrage.

c. Diversion.

d. Reconsignment.

21. Determining an alternative location for a shipment after receipt is termed

a. Detention.

b. Demurrage.

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c. Diversion.

d. Reconsignment.

22. Which of the following statements is true?

a. Railroads are best at moving small volumes of bulky goods over short distances.

b. Motor transport is the least flexible of all the modes.

c. Air cargo should be used for fast service over short distances.

d. Water transport should be used to move large volume, low cost com-modities over long distances

23. A shipper moving a small quantity of expensive goods from New York to Los Angeles would likely use

a. Air transport

b. Motor transport

c. Rail transport

d. Water transport

24. Which of the following modes of transportation will provide the best service capability?

a. Common

b. Contract

c. Private

d. Exempt

25. Which mode of transportation would cost the least per ton mile?

a. Airb. Motor (trucks)c. Raild. Water

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26. Splitting a large shipment into smaller loads because of limitations in vehicle capacity is a violation of which of the following transportation principles?

a. Continuous flowb. Maximum vehicle unitc. Optimize unit of cargod. Match vehicle to the nature of the traffic

27. The statement, “as the travel distance increases, the transportation cost curve increases at a decreasing rate,” is known by which principle:

a. Distanceb. Taperingc. Weightd. Density

28. The most important operational decision related to transportation is

a. Minimizing the cost of transportation

b. Maximizing profitability

c. Reducing the level of cycle inventory

d. The routing and scheduling of deliveries

29. Which one of the following transportation operations principles considers both weight and volume planning for transportation?

a. Distance

b. Weight

c. Density

d. Stowability

30. The vehicle dispatching problem is described as

a. Establishing a route serving a single customer that minimizes delivery costs within vehicle payload and distance constraints

b. Establishing a route serving a number of customers that minimizes deliv-ery costs within vehicle payload and distance constraints

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c. Establishing a route serving a number of customers that minimizes deliv-ery costs within vehicle constraints

d. Establishing a route serving a number of customers that minimizes deliv-ery costs within vehicle payload constraints

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Answer Key1. F2. T3. T4. T5. F6. F7. T8. T9. F10. F11. b12. a13. a14. d15. c16. a17. d18. a19. a20. b21. d22. d23. a24. c25. d26. b27. b28. d29. c30. b