Deck 8: Transportation

Question 1

Which of the following is a product's characteristic that directly influences transport cost:

A)The product's market share.
B)The product's density
C)The product's technical complexity
D)All of the above

Answer 1

B

Question 2

If you want the consignee to be responsible for goods while they are intransit you should ship products:

A)FOB Destination
B)FOB Origin
C)Using Delivered Pricing
D)Using Single Zone Pricing

Answer 2

B

Question 3

Generally the least costly method of moving product that is not gaseous,liquid,or slurry is:

A)Air
B)Water
C)Truck
D)Rail

Answer 3

B

Question 4

The document that lists and details the contents and conditions of a shipment is called:

A)The Tariff
B)Proof of Delivery
C)The Invoice
D)The Bill of Lading

Question 5

Jones Company decided it would only deliver to each geographic market it serves once each week.This strategy is called:

A)Market area consolidation
B)Scheduled delivery consolidation
C)Pooled Delivery
D)Phantom freight

Question 6

Motor carriers are the most used mode of transportation.

Question 7

When a carrier's transportation vehicle is used for temporary product storage a firm typically has to pay:

A)Freight Absorption
B)Demurrage
C)Phantom Storage
D)Vehicular Stoppage

Question 8

The transportation economic principle that deals with economy of distance is:

A)Consolidation
B)Load-off
C)Tapering
D)Spanning

Question 9

Declining transport rates as the quantity shipped increases represents:

A)The Tapering Principle
B)Economy of Distance
C)Economy of Energy
D)Economy of Scale

Question 10

The transportation mode having the fastest point to point transit time is truck.

Question 11

Which combination of transportation operating service characteristics is not correct?

A)Speed: air is best;pipeline is worst
B)Availability: motor is best;pipeline is worst
C)Capability: air is best;truck is worst
D)Dependability: pipeline is best;air is worst

Question 12

The mode of transportation hauling the most tonnage is:

A)Truck
B)Rail
C)Air
D)Water

Question 13

Since 1995 the use of intermodal transportation has:

A)Remained about the same
B)Increase significantly
C)Decreased
D)Increased slightly

Question 14

Among the following choices which is typically the most expensive transportation mode:

A)Air
B)Water
C)Truck
D)Rail

Question 15

The Jones Company learned that several other shippers located in its hometown had customers located in the same markets it serves.With this information Jones could find it advantage to investigate the potential of:

A)Market Area Consolidation
B)Scheduled Delivery Consolidation
C)Pooled Delivery Consolidation
D)A Phantom Freight Program

Question 16

If you need to find the cost to ship 10,000 pounds from Lansing to Orlando you should look at the:

A)Tariff
B)Uniform Freight Classification
C)Bill of Lading
D)FOB content description

Question 17

To facilitate classification of a large variety of different items being shipped on a single invoice a Traffic Manager may want to consider:

A)Commodity Rates
B)Class Rates
C)Volume Rates
D)FAK Rates

Question 18

Which of the following is a non-operating transportation intermediary:

A)Bonded Warehouse
B)UPS
C)Freight Forwarder
D)None of the above

Question 19

If a transportation vehicle has completed a delivery and is returned empty,the situation is called a:

A)Backhaul
B)Piggy-back
C)Freight absorption
D)Deadhead

Question 20

The transportation mode having the best overall operating characteristics is truck.

Question 21

Freight classification is a method to simplify the locations being serviced by a carrier.

Question 22

The significant difference between a class rate and a commodity rate is the type of freight being shipped.

Question 23

Trucking has superior operating characteristics in all categories except availability.

Question 24

The main advantage of air transport is safety.

Question 25

Pipeline has the highest dependability and frequency among alternative modes.

Question 26

If your company does not want responsibility for freight damage on the products they ship they should negotiate FOB Destination rates.

Question 27

As a general rule the greater the density the lower the freight rate.

Question 28

Intermodal transportation typically consists of using three modes to complete a shipment.

Question 29

A freight forwarder is an example of a nonoperating intermediary.

Question 30

The land bridge combines sea and rail transport.

Question 31

The main disadvantage of pipelines is that they can only transport liquids.

Question 32

A joint rate is applicable when two or more carriers participate in a specific transportation movement.

Question 33

Water transport has the highest fixed cost.

Question 34

Air transport is characterized by low fixed and high variable cost.

Question 35

The fact that most traditional carriers require a minimum charge helped create the market for package services.

Question 36

Railroad mileage has declined over the past several decades.

Question 37

Under transportation regulation the government established rates.

Question 38

If you want to find freight rates charged by a transportation company to deliver different size shipments between two cities you should check the bill of lading.

Question 39

The rating reflects the cost of shipment from one location to another.

Question 40

A minimum charge represents the lowest cost per hundred weight a carrier offers.

Question 41

When shippers provide Advanced Shipment Notification (ASN)their objective is to collect freight bills faster.

Question 42

A pickup allowance reflects a discount given to a customer when they provide transportation on a shipment that otherwise would involve delivery.

Question 43

The legislation that determines how many hours a locative operator can work is called Hours of Service (HOS).

Question 44

The primary purpose of a pickup allowance is to reduce the miles a shipment must be transported.

Question 45

When the release of railroad equipment is detained by a shipper a detention charge may apply.