Deck 9: Delivery

Question 1

Transportation rates:

A) are established primarily through negotiation.
B) are established primarily by government regulation.
C) are lower for LTL than TL shipments.
D) typically decrease as delivery speed increases.
E) typically do not change when smaller shipments are consolidated.

Answer 1

A

Question 2

The bill of lading is the key document in the movement of goods.

Answer 2

True

Question 3

Organizations operating under a just-in-time system, require:

A) international coverage.
B) heightened security.
C) lowest price.
D) on-time deliveries.
E) real-time package tracking.

Answer 3

D

Question 4

When assessing the quality of a telecommunications provider, a key indicator of superior quality to a competitor is the ability to:

A) own and operate the largest network of land and sea cable.
B) compress more high resolution information on the same bandwidth.
C) have the leanest network of repeater stations.
D) have the most extensive intermodal operations.
E) own radio frequencies with greater range.

Question 5

Over the past two decades, logistics costs as a percent of the U.S. gross domestic product GDP) have:

A) been extremely volatile due to international events.
B) increased due to transportation deregulation and technology investments.
C) declined due to deregulation, technology investment, and e-commerce.
D) doubled due to growth in international sourcing.
E) remained constant due to a stagnant global economy.

Question 6

One of the disadvantages of intermodal frieght services is higher damage rates due to more handling.

Question 7

One of the advantages of integrated carriers truck-air) like UPS and Federal Express is that they:

A) utilize commercial airlines for air service.
B) outsource much of their air network..
C) own their own aircraft.
D) rely more on air than ground transportation.
E) outsource much of their ground network.

Question 8

When selecting freight carriers, buyers are most concerned with:

A) best overall value.
B) intermodal capabilities.
C) supply chain and delivery speed.
D) geographic coverage.
E) shipment security.

Question 9

One of the advantages of shipping by air carrier is that it is inexpensive compared to other modes of transportation.

Question 10

The selection of the FOB point is important to the purchaser, for it determines:

A) who pays the carrier.
B) when legal title to goods being shipped passes to the buyer.
C) who is responsible for preparing and pursuing loss or damage claims.
D) who routes the freight.
E) all of the above.

Question 11

Transportation costs increase as distance, quantity, and speed increase.

Question 12

Two effective cost reduction strategies are partnering agreements with logistics services provider and long-term contracts.

Question 13

Carriers for RF waves are air, copper wire and fiberoptic cable.

Question 14

Outsourcing or using third party logistics services has:

A) remained flat due to increased challenges of international logistics.
B) become increasingly popular with small organizations, but not large ones.
C) declined in popularity due to declining service provider performance.
D) declined as transportation has been re-regulated.
E) increased as organizations focus on core competencies.

Question 15

Third-party logistics service providers are carriers that always own assets trucks, airplanes, railcars) and act as intermediaries between trading partners, for example, shippers and carriers.

Question 16

Fuel efficiency and energy consumption considerations:

A) have no impact on transportation strategy in most organizations.
B) are a factor in transportation strategy development in many organizations.
C) encourage shippers to focus on increasing LTL shipments.
D) lead to disintermediation in the supply chain.
E) result in lower use of third party logistics providers.

Question 17

When contracting with logistics services providers, supply managers are limited by Federal regulations in their use of standard supply techniques such as negotiation, systems contracts, and supplier evalaution.

Question 18

Radio frequency RF) waves are a mode of transportation for information.

Question 19

A mode of transportation is any means of conveyance truck, auto, taxi, bus, railroad, ship, airplane) of people or property.

Question 20

Supply's involvement in transportation decisions is:

A) insignificant and declining due to the growth of supply chain management.
B) growing due to the increase in the number of railroads and trucking companies throughout the world..
C) growing due to the deterioration of roads, bridges, and highways in North America.
D) declining due to the growth of outsourcing transportation decisions to third party logistics providers.
E) growing in terms of direct functional responsibility and cross-functional efforts to devise solutions with logistics services providers.