Deck 11: Transportation Managing the Flows of the Supply Chain

Question 1

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

Answer 1

True

Question 2

Because it is important to control the freight and manage key events as product moves across the supply chain, many carriers use satellites, cellular networks, and wireless technologies to maintain equipment and freight visibility.

Answer 2

True

Question 3

"Tendering" refers to the process of receiving a shipment from a carrier.

Answer 3

False

Question 4

Transportation plays a key role in supply chain design, strategy development, and total cost management.

Question 5

Regardless of mode-truck, train, plane, ship, pipeline, or fiber optic wire-transportation facilitates time and place utility.

Question 6

Generally speaking, truck, pipeline, and air modes are used for high-value products, while water and rail modes are used for low-value products.

Question 7

Some organizations may choose to outsource their transportation needs to third-party logistics (3PL) firms, which may include international freight forwarders, non vessel-owning common carriers, and customs brokers.

Question 8

In global supply chains, "on-shoring" and "near-shoring" strategies have virtually eliminated the risk and expense of transporting goods vast distances.

Question 9

The three general types of for-hire carriers include truckload carriers, intermediate vehicle carriers, and small package carriers.

Question 10

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

Question 11

Railroads have accessibility limitations.

Question 12

All modes of transportation provide the same basic service.

Question 13

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

Question 14

A bill of lading is nonnegotiable.

Question 15

A carrier is never excused from a claim.

Question 16

Motor carrier cost is highly variable.

Question 17

Product value is an important factor in modal selection.

Question 18

Pipeline costs are predominantly fixed.

Question 19

Intermodal growth has been flat.

Question 20

The rail industry is divided into linehaul freight carriers and shortline carriers, and rail equipment can be organized into loads and transported as manifest, unit, or intermodal trains.

Question 21

Define and discuss Transportation Management Systems (TMS).

Question 22

Air carriers were historically looked upon as:

A) emergency only carriers.
B) having equipment shortages.
C) a fringe participant.
D) insignificant.

Question 23

This mode of transportation is the one most often used in intermodal shipments.

A) Air
B) Motor carrier
C) Rail
D) Ocean

Question 24

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

Question 25

Software tools related to the movement of goods across the supply chain are lumped together in a general category called transportation management systems (TMS).

Question 26

To avoid complications, LogicForce's transportation management system has arranged for TransPrime to pick up a shipment on Friday at 10 a.m. on docks 1 and 2, and for Worldwide Shipping to deliver a shipment on Friday at 1 p.m. on docks 5 and 6. Which tool within the TMS has made these arrangements?

A) Load tendering
B) Routing and scheduling
C) Appointment scheduling
D) Status tracking

Question 27

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

Question 28

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

A) Marketing
B) Manufacturing
C) Procurement
D) Logistics

Question 29

Which of these is not a freight document?

A) Routing guide
B) Bill of lading
C) Freight bill
D) Freight claims form

Question 30

Which of the following formulas is used to calculate the Perfect Delivery Index, a common transportation metric?

A) Total on-time deliveries / Total deliveries
B) Total units damaged, lost, or stolen / Total units shipped
C) Shortage % ´ Damage-free % ´ Billing accuracy %
D) On-time % ´ Damage-free % ´ Billing accuracy %

Question 31

A key requirement for service quality monitoring is information, but data alone does not provide the necessary holistic perspective of a carrier's service quality.

Question 32

The distances in today's global supply chains produce:

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

Question 33

As a product's susceptibility to loss and damage increases, its transportation cost:

A) increases.
B) decreases.
C) stays the same.
D) can't be determined.

Question 34

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 35

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

Question 36

Challenges for the trucking industry include:

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

Question 37

LogicForce's transportation management system has determined that DHL is the best carrier for a particular shipment, based on a comparison of different carriers' costs, times, and services. Which tool within the TMS has made this determination?

A) Routing and scheduling
B) Load tendering
C) Status tracking
D) Appointment scheduling

Question 38

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.