Deck 13: Transportation Management

Question 1

Which of the following is not one of the primary factors that transportation rates are based upon?

A)product
B)density
C)weight
D)distance

Answer 1

B

Question 2

The most important single transportation document is the:

A)bill of lading
B)freight bill
C)commercial invoice
D)certificate of origin

Answer 2

A

Question 3

A

A)industrial transportation manager
B)certified logistics professional
C)third-party logistics shipper
D)amodal shipper

Answer 3

D

Question 4

A

A)exception
B)class
C)ad valorem
D)commodity

Question 5

Suppose the LTL rate is $2.00 per hundredweight,the TL rate is $1.40 per hundredweight and the TL minimum is 18,000 pounds.What is the weight break?

A)5,294 pounds
B)10,588 pounds
C)12,600 pounds
D)30,0000 pounds
E)cannot be determined

Question 6

Which of the following is not a possible payment option

A)FOB origin,freight collect and charged back
B)FOB origin,freight collect
C)FOB origin,freight prepaid
D)FOB origin,freight prepaid and charged back
E)All are possible payment options

Question 7

Which of the following is not a factor used to determine a product's classification?

A)density
B)liability to damage and theft
C)stowability
D)ease of handling
E)all are factors used to determine a product's classification

Question 8

Suppose that a particular item is Class 200 according to the National Motor Freight Classification.What is the relationship between this item's rate and the rate for an item in Class 100?

A)The Class 200 rate is cheaper than the Class 100 rate
B)The rate relationship depends on other factors
C)The rates are identical
D)The Class 200 rate is higher than the Class 100 rate
E)There is insufficient information to answer the question

Question 9

Which of the following tends to be the most important factor in carrier selection?

A)pricing
B)loss and damage performance
C)transit time reliability
D)financial stability
E)none of the above

Question 10

In general terms,____ accounts for about 6% of U.S.Gross Domestic Product.

A)warehousing
B)logistics
C)supply chain management
D)transportation

Question 11

What is the logistics term that signifies the price charged for freight transportation?

A)fare
B)tariff
C)rate
D)ton-mile

Question 12

A

A)class
B)ad valorem
C)commodity
D)exception

Question 13

Suppose that there is a rate of $75 per hundredweight and you have a 600 pound shipment.What is the correct transportation charge for this shipment?

A)$8
B)$450
C)$1,200
D)$45,000
E)cannot be determined

Question 14

With FOB destination,freight prepaid:

A)The seller pays the freight charges,but the buyer owns the goods in transit
B)The seller pays the freight charges,and also owns the goods in transit
C)The buyer pays the freight charges and owns the goods in transit
D)The buyer pays the freight charges,but the seller owns the goods in transit

Question 15

Each of the following is true,except:

A)the bill of lading is the most important transportation document
B)the straight bill of lading contains the name of the consignee
C)the order bill of lading does not contain the name of the consignee
D)the bill of lading adds to the complexity of the transportation manager's job
E)all of the above are true

Question 16

____ refers to how heavy a product is in relation to its size.

A)Stowability
B)Volume
C)Weight break
D)Density

Question 17

Freight rates in the United States are often expressed in dollars or cents per:

A)Hundredweight
B)Pounds
C)Kilograms
D)Tons

Question 18

____ refers to how easy a commodity is to pack into a load.

A)Ease of handling
B)Recoupering
C)Stowability
D)Drayage

Question 19

The shipment size that equates transportation charges for different weights and weight groups is the ____ concept.

A)optimum cost reliability point
B)perfect order
C)weight break
D)maximum-minimum

Question 20

____ refers to the buying and controlling of transportation services by either a shipper or consignee.

A)Transportation management
B)Logistics management
C)Routing
D)Outsourcing
E)None of the above

Question 21

Which of the following statements is false?

A)demurrage is a penalty payment made by the shipper or consignee to a railroad for keeping equipment beyond the time it should be released
B)detention is similar to demurrage,except that detention applies to the pipeline industry
C)averaging agreements can be used with demurrage
D)carriers and shippers can negotiate demurrage / detention policies
E)all statements are true

Question 22

Tracing refers to:

A)determining the least expensive route for a shipment
B)locating the proper rate
C)locating lost or delayed shipments
D)finding the shortest distance between two points

Question 23

A ____ provides guidance in terms of shipment information,freight invoicing,and a preferred list of carriers for shipments moving between two points.

A)routing guide
B)tariff
C)bill of lading
D)freight book

Question 24

Routing refers to the buying and controlling of transportation services by a shipper or consignee.

Question 25

A transportation charge (the cost of transportation) can be calculated by multiplying the weight times the rate.

Question 26

____ can be defined as the process of determining how a shipment will be moved between consignor and consignee or between place of acceptance by the carrier and place of delivery to the consignee.

A)Tracing
B)Recoupering
C)Transportation
D)Routing
E)None of the above

Question 27

Today's transportation manager can play an active role in blending the appropriate pricing and service packages for his / her organization.

Question 28

Which of the following statements is false?

A)carriers may be reluctant to accept small shipments because they require a high degree of manual labor
B)some carriers believe that they lose money on small shipments
C)consolidating small shipments into larger ones could result in poorer service to the final customer
D)consolidating small shipments into larger ones likely results in higher inventory carrying costs
E)all statements are true

Question 29

____ is the attempt to locate lost or late shipments.

A)Expediting
B)Recoupering
C)Reparation
D)Tracing
E)None of the above

Question 30

The ____ was formed by shippers and carriers as a means for settling freight claims disputes.

A)Transportation Arbitration Board
B)Freight Claims Council
C)Shipper-Carrier Mediation Board
D)Traffic Management Claims Committee

Question 31

Demurrage charges are collected by which two modes of transportation?

A)truck; rail
B)pipeline; air
C)rail; water
D)truck; pipeline

Question 32

What is the time limitation within which a freight claim must be filed?

A)Three months from delivery date
B)Six months from delivery date
C)Nine months from delivery date
D)Twelve months from delivery date
E)None of the above

Question 33

Small shipments are defined as those that:

A)involve three or fewer cartons
B)are moved primarily by parcel carriers
C)weigh more than 150 pounds but less than 500 pounds
D)weigh more than 10 pounds but less than 100 pounds

Question 34

Which of the following is false?

A)a number of large US metropolitan areas are seeking bans on railroad movement of hazardous materials through major cities
B)the railroads' cost of hauling hazardous materials has increased dramatically in recent years
C)the US federal government first began regulating the transportation of hazardous materials in the 20th century
D)an organization is required to know,track,and record the location of all hazardous materials it owns,controls,or generates
E)all of the above are true

Question 35

An order bill of lading is used:

A)for overseas shipments
B)when a shipment must be expedited
C)when a shipment is started before the buyer is known
D)to guard against disruptions in transit

Question 36

An invoice submitted by the carrier requesting to be paid is ____.

A)a bill of lading
B)a freight bill
C)a carnet
D)dunnage

Question 37

____ refers to rapidly moving a shipment through a carrier's system.

A)Expediting
B)Recoupering
C)Reparation
D)Cross-docking

Question 38

A rate is the logistics term that signifies the price charged for freight transportation.

Question 39

Freight transportation accounts for approximately 10% of U.S.Gross Domestic Product.

Question 40

If a product destroyed or damaged in transit is intended to be placed into general replacement inventory,then the retailer would likely receive:

A)nothing but an apology from the carrier
B)the wholesale price plus 20%
C)the retail price minus 20%
D)the wholesale price,plus freight if previously paid

Question 41

Fewer than 500 motor carriers currently use the freight classification system.

Question 42

The class rate system simplifies with respect to three primary factors-density,product,and distance.

Question 43

With FOB origin,the seller retains title and control of the shipment until it is delivered.

Question 44

Stowability refers to how easy a commodity is to pack into a load.

Question 45

The bill of lading is an invoice,submitted by the carrier,requesting to be paid.

Question 46

Density is one of the four factors used to determine a product's freight classification.

Question 47

An order bill of lading specifies the consignee.

Question 48

The most important single transportation document is the bill of lading.

Question 49

An amodal shipper uses a logistics intermediary to make the relevant transportation decisions.

Question 50

A commodity rate is very good for dealing with demand-specific situations.

Question 51

Transit time reliability is the most important factor that shippers tend to use when selecting carriers.

Question 52

The price and service tradeoffs available to today's transportation manager are limited only by her / his creativity and ingenuity.

Question 53

Liability to damage and theft is viewed as the primary factor in setting a product's freight classification.

Question 54

A freight claim must be filed within nine months of the shipment's delivery date.

Question 55

Freight bill audits are designed to detect errors that result in overcharges and to correct these errors in the future.

Question 56

With respect to a commodity's freight classification,shippers tend to prefer a higher classification number while carriers tend to prefer a lower classification number.

Question 57

An item with a freight classification of Class 200 will be charged a higher rate than an item with a freight classification of Class 100.

Question 58

A weight break refers to the maximum weight of freight that can be loaded into a vehicle before another vehicle is needed.

Question 59

The carrier selection procedure appears to be less straightforward than the procedure for modal selection.

Question 60

A disadvantage of FOB destination pricing from a seller's perspective is that the seller's organization must have a thorough knowledge of transportation management.

Question 61

Small shipments refer to those that can be handled relatively expeditiously and inexpensively by either the postal system or UPS.

Question 62

Classifications are based on both cost and value of service.From the carriers' standpoint,how has cost of service changed?

Question 63

Given the existing LTL classification of 200,how has value of service to the customer changed?

Question 64

A routing guide can provide a variety of shipment-related information such as shipment preparation and a list of preferred carriers for shipments moving between two points.

Question 65

Expediting refers to determining a shipment's location during the course of its move.

Question 66

The U.S.federal government has been regulating the transportation of hazardous materials since the mid-1970's.

Question 67

If you worked for Chippy,what new classification would you ask for? Give your reasons.

Question 68

An organization is required to know,track,and record the location of all hazardous materials that it owns,controls,or generates.

Question 69

The Transportation Arbitration Board

Question 70

From a transportation manager's perspective,small shipments are costly to transport and often receive poor service from transportation carriers.

Question 71

The new tubular containers are much sturdier.If you worked for Chippy,how-if at all-would you argue that this factor influences classification?

Question 72

In demurrage-related averaging agreements,slow equipment returns can be offset by fast equipment returns.

Question 73

Suppose that a shipment of products destined for a particular retailer is lost or damaged.If these products were going into general inventory replacement stock,then the retailer is entitled to recover the wholesaler price plus freight costs

Question 74

Concealed loss and damage claims are some of the most difficult for shippers and carriers to handle.

Question 75

You work for the motor carrier classification bureau and notice that the relationship between the weight of potato chips and the weight of packaging has changed.How,it at all,should this influence changes in the product's classification?

Question 76

Some transportation managers utilize performance scorecards that contain a list of relevant attributes and an evaluation of each carrier on every attribute.

Question 77

Today's transportation carriers tend to have uniform demurrage and detention policies.

Question 78

Expedited shipment by motor carriage can sometimes provide faster and more reliable service than expedited shipping involving air transportation.

Question 79

Demurrage is a payment penalty associated with railroads,while detention is a payment penalty associated with the trucking industry.

Question 80

One of Chippy's own trucks,used for local deliveries,has two axles and an enclosed body measuring