Deck 10: Transportation-Managing the Flow of the Supply Chain

Question 1

The growth of outsourcing has created transportation challenges.

Answer 1

True

Question 2

All modes of transportation provide the same basic service.

Answer 2

True

Question 3

Given the availability of information, transportation buying has become comparatively easy.

Answer 3

False

Question 4

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.

Question 5

Outsourcing transportation is a "buy" decision.

Question 6

The responsibly for transportation management is typically not assigned to any one management discipline in an organization.

Question 7

Procuring inexpensive transportation is the major goal of supply chain managers.

Question 8

Railroads have accessibility limitations.

Question 9

Following the trend in deregulation of most transportation modes, freight rate negotiations are being decentralized.

Question 10

Motor carrier cost is highly variable.

Question 11

The railroads have not shared in the growth in transportation and so do not have any capacity issues.

Question 12

CBP is now enforcing the "48 Hour Rule".

Question 13

Nonintegrated air carriers do not supply door-to-door service.

Question 14

Intermodal growth has been flat.

Question 15

Pipeline costs are predominantly fixed.

Question 16

A carrier is never excused from a claim.

Question 17

Railroad's length of haul is longer than that of motor carriers.

Question 18

Product value is an important factor in modal selection.

Question 19

The main strategy behind routing guides is to maintain very tight control of transportation costs.

Question 20

A bill of lading can be either straight or order.

Question 21

Security legislation

A) has not had much impact on transportation carriers.
B) has caused some firms to stop offshore sourcing.
C) has caused expense issues for carriers.
D) has created unnecessary restrictions of legitimate trade.

Question 22

Trade imbalances affect

A) water carriers.
B) motor carriers.
C) railroads.
D) pipelines.

Question 23

Desirability refers to

A) performance reporting and scorecarding.
B) attractive packaging choices.
C) characteristics that influence modal selection.
D) ride quality.

Question 24

Terms of sale establish

A) when ownership and title of the goods passes from seller to buyer.
B) what must be shown on the bill of lading.
C) which transportation mode must be used.
D) who handles freight claims.

Question 25

What are Incoterms, and what terms of sale decisions do they help to clarify?

Question 26

Which is not a mode of transportation?

A) truck
B) air
C) 3PL
D) pipeline

Question 27

Challenges for the trucking industry include

A) lack of flexibility.
B) limited equipment options.
C) oversupply of qualified drivers.
D) competition.

Question 28

Transportation efficiency promotes __________ in the supply chain.

A) intermodal demand
B) KPIs
C) capacity
D) competition

Question 29

There are five primary modes of transportation and an intermodal transportation model. Pick two of these to discuss, including challenges and obstacles.

Question 30

Railroads fall into a group called

A) nonintegrated carriers.
B) intermodal operators.
C) natural monopolies.
D) service challenged carriers.

Question 31

Transportation plays a key role in supply chain design, strategy development, and total cost management in three areas. Name these areas and discuss one in detail.

Question 32

Which of these is not a freight document?

A) routing guide
B) bill of lading
C) freight bill
D) freight claims form

Question 33

Air carriers were historically looked upon as
A) a fringe participant.

A) emergency only carriers.
B) having equipment shortages.
B) insignificant.

Question 34

KPI is another term for a shipping document.

Question 35

The distances in today's global supply chains produce

A) higher cost.
B) longer transit times.
C) more disruptions.
D) all of these.

Question 36

Define FOB terms and discuss the various areas they cover.

Question 37

A key requirement for service quality monitoring is information.

Question 38

Economic deregulation sparked competition among carriers in several areas. Which of these is not an area of competition?

A) accessibility
B) pricing
C) performance
D) services

Question 39

Which management area in an organization does not normally have transportation responsibility?

A) marketing
B) manufacturing
C) procurement
D) logistics

Question 40

The main strategy behind routing guides is to

A) maintain exact control.
B) comply with or enforce FOB terms.
C) promote supply chain excellence.
D) select between modes.

Question 41

Discuss the elements of carrier selection, and how it differs from mode selection.

Question 42

What are the three types of freight documentation? Discuss how each is used.

Question 43

What is modal selection? What are the key determinants in choosing a mode?

Question 44

Define and discuss Transportation Management Systems (TMS).