Deck 8: Transportation

Question 1

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

Answer 1

B

Question 2

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

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

Answer 2

B

Question 3

Hazardous Materials Transportation Uniform Safety Act of 1990 was a form of :

A)Economic Regulation
B) Interstate Regulation
C)Social Regulation
D)None of the above

Answer 3

C

Question 4

Motor carriers are the most used mode of transportation

Question 5

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 6

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

Question 7

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 8

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

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

Question 9

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 10

Which combination of transportation operating service characteristics 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 11

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 12

Since 1995 the use of intermodal transportation has:

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

Question 13

transportation economic principle that deals with economy of distance is:

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

Question 14

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 15

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 16

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

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

Question 17

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 18

mode of transportation hauling the most tonnage is:

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

Question 19

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

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

Question 20

Assume your firm uses Uniform Delivered Pricing.This will result in:

A)Customers located close to you paying some phantom freight
B)Customers located far from you paying some phantom freight
C)Customers located far from you paying freight absorption
D)Customers located close to you paying freight absorption

Question 21

transportation mode having the best overall operating characteristics is truck

Question 22

freight forwarder is an example of a nonoperating intermediary

Question 23

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

Question 24

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

Question 25

Water transport has the highest fixed cost

Question 26

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 27

transport is characterized by low fixed and high variable cost

Question 28

Pipeline has the highest dependability and frequency among alternative modes

Question 29

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

Question 30

Under transportation regulation the government established rates

Question 31

rating reflects the cost of shipment from one location to another

Question 32

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

Question 33

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

Question 34

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

Question 35

your company does not want responsibility for freight damage they should negotiate FOB Destination rates

Question 36

land bridge combines sea and rail transport

Question 37

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

Question 38

main advantage of air transport is safety

Question 39

Railroad mileage has declined over the past several decades.

Question 40

Trucking has superior operating characteristics in all categories except availability

Question 41

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

Question 42

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

Question 43

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

Question 44

pricing is a technique to encourage customers to perform specific activities that are deemed desirable by the seller .

Question 45

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

Question 46

Computer software designed to assist in carrier management is typically called a Transportation Management System (TMS)

Question 47

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

Question 48

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

Question 49

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