Deck 13: Transportation Management

Question 1

In general terms,___________ accounts for about 6 percent of U.S.gross domestic product.
a.warehousing
b.logistics
c.supply chain management
d.transportation

Answer 1

transportation

Question 2

A(n)___________ rate refers to a specific rate for every possible combination of product,weight,and distance.
a.classification
b.ad valorem
c.commodity
d.class

Answer 2

commodity

Question 3

With ___________,the seller retains title and control of a shipment until it is delivered.
a.FOB destination
b.integrated logistics
c.FOB origin
d.omnichannel marketing

Answer 3

FOB destination

Question 4

___________ refers to the buying and controlling of transportation services by either a shipper or consignee.
a.Transportation management
b.Logistics management
c.Routing
d.Tracking

Question 5

___________ refers to how heavy a product is in relation to its size.
a.Stowability
b.Volume
c.Weight
d.Density

Question 6

A(n)___________ rate simplifies each of the three primary rate factors-product,weight,and distance.
a.class
b.ad valorem
c.density
d.commodity

Question 7

Which of the following statements about the class rate system is false?
a.Origin and destination zip codes are commonly used when calculating a shipment's total cost.
b.A commodity's classification can noticeably impact transportation expenses.
c.Shippers can reduce their transportation expenses by utilizing fewer,heavier shipments rather than multiple,lighter shipments.
d.Shipment costs increase in direct proportion to the increase in distance.

Question 8

With respect to a commodity's freight classification,shippers tend to prefer a ___________ classification number and carriers tend to prefer a ___________ classification number.
a.lower,lower
b.lower,higher
c.higher,lower
d.higher,higher

Question 9

Which of the following is not one of the three primary factors that transportation rates are based upon?
a.product
b.density
c.weight
d.distance

Question 10

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

Question 11

Weight times rate equals ___________.
a.density
b.transportation cost
c.stowability
d.volume

Question 12

With ___________,the buyer assumes title and control of a shipment at the point of pickup.
a.FOB destination
b.integrated logistics
c.FOB origin
d.omnichannel marketing

Question 13

Which of the following is not a possible payment option (terms of sale)for U.S.domestic shipments?
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

Question 14

Liability for loss and damage is one factor used to determine a product's freight classification.Which of the following is not a loss and damage consideration?
a.a commodity's propensity to damage other freight
b.the ability to load freight on top of a commodity
c.the perishability of a commodity
d.a commodity's value

Question 15

A(n)___________ rate is very good for dealing with demand-specific situations.
a.density
b.commodity
c.class
d.ad valorem

Question 16

With FOB destination,freight prepaid ___________.
a.the buyer pays the freight charges,but the seller owns the goods in transit
b.the buyer pays the freight charges and owns the goods in transit
c.the seller pays the freight charges and owns the goods in transit
d.the seller pays the freight charges,but the buyer owns the goods in transit

Question 17

Which of the following is not one of the four factors used to determine a product's classification?
a.density
b.liability to damage and theft
c.stowability
d.product value

Question 18

___________ signifies the price charged for freight transportation.
a.Fare
b.Tariff
c.Rate
d.Revenue

Question 19

The National Motor Freight Classification (NMFC)currently has 18 separate ratings,or classes,that range from Class 50 to Class ___________.
a.300
b.400
c.500
d.600

Question 20

___________ refers to how easy a commodity is to pack into a load.
a.Recoupering
b.Stowability
c.Dunnage
d.Materials handling

Question 21

Which of the following statements is false?
a.Detention is similar to demurrage except that detention applies to pipelines.
b.Demurrage is a penalty payment made to a railroad for keeping equipment beyond the time it should be released.
c.Averaging agreements can be used with demurrage.
d.Carriers and shippers can negotiate demurrage and detention policies.

Question 22

A(n)___________ refers to a transportation manager who purchases a prespecified level of transportation service and is indifferent to the mode and carrier used to provide the transportation service.
a.class rate shipper
b.certified logistics professional
c.third-party logistics shipper
d.amodal shipper

Question 23

Which of the following statements is false?
a.Freight claims must be filed within nine months of the delivery date.
b.Concealed loss and damage is a delicate area for shippers and carriers.
c.The volume of freight claims activity has dropped since transportation deregulation.
d.Shippers or carriers are entitled to a product's full retail value when filing a freight claim.

Question 24

The most important single transportation document is the ___________.
a.freight bill
b.bill of lading
c.commercial invoice
d.certificate of origin

Question 25

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 26

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

Question 27

A ___________ provides a variety of shipment information such as shipment preparation,freight invoicing,a list of preferred carriers,and a list of which carrier or carriers to use for shipments moving between two points.
a.freight classification manual
b.routing guide
c.tariff
d.bill of lading

Question 28

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

Question 29

___________ refers to rapidly moving a shipment through a carrier's system.
a.Expediting
b.Tracking
c.Fast logistics
d.Cross-docking

Question 30

A freight claim must be filed within ___________ months from the date on the bill of lading.
a.3
b.6
c.9
d.12

Question 31

Each of the following is true except:
a.The bill of lading is the most important transportation document.
b.The bill of lading adds to the complexity of the transportation manager's job.
c.The straight bill of lading contains the name of the consignee.
d.The order bill of lading does not contain the name of the consignee.

Question 32

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 they lose money on small shipments.
c.Consolidating small shipments into larger ones could result in poorer service to the final customer.
d.Small shipments should be consolidated across place rather than across time.

Question 33

___________ can be defined as the process of determining how a shipment will be moved between origin and destination.
a.Tracking
b.Demurrage
c.Transportation
d.Routing

Question 34

Freight transportation accounts for approximately 10 percent of U.S.gross domestic product.

Question 35

An invoice submitted by the carrier requesting to be paid is ___________.
a.a freight bill
b.a bill of lading
c.voucher
d.dunnage

Question 36

___________ refers to determining a shipment's location during the course of its move.
a.Expediting
b.Calibration
c.Reparation
d.Tracking

Question 37

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

Question 38

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 39

If a product destroyed or damaged in transit is intended to be placed into general replacement inventory,then the retailer would likely receive ___________.
a.the retail price plus freight if previously paid
b.the wholesale price plus 20 percent
c.the retail price minus 20 percent
d.the wholesale price plus freight if previously paid

Question 40

Demurrage charges are collected by railroads,___________,and ___________.
a.motor carriers,pipelines
b.water carriers,pipelines
c.motor carriers,water carriers
d.airlines,pipelines

Question 41

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

Question 42

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

Question 43

A transportation charge (the cost of transportation)can be calculated by multiplying a product's weight times the applicable rate.

Question 44

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

Question 45

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 46

An amodal shipper refers to the use of a logistics intermediary to make the relevant transportation decisions.

Question 47

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

Question 48

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

Question 49

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

Question 50

With respect to class rates,longer distance shipments are more expensive than shorter distance shipments,and the difference in costs is proportional to the increase in distance.

Question 51

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

Question 52

Ease or difficulty of handling is one of the four factors used to determine a product's freight classification.

Question 53

The National Motor Freight Classification (NMFC)has 20 separate classes,or ratings,from class 50 to class 600.

Question 54

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

Question 55

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

Question 56

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

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

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

Question 59

Transportation documentation serves both a practical function (e.g.,what,where,and how much is being transported)as well as potentially providing legal recourse if something goes awry.

Question 60

Because transportation costs tend to be lower per unit of weight for larger shipments,there is a natural motivation to consolidate smaller shipments into larger ones.

Question 61

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

Question 62

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

Question 63

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

Question 64

The volume of transportation freight claims has increased in recent years.

Question 65

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

Question 66

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 67

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

Question 68

Small shipments refer to those that can be handled relatively expeditiously and inexpensively by a small package carrier.

Question 69

Demurrage is a penalty payment associated with railroads whereas detention is a penalty payment associated with motor carriers.

Question 70

Order bills of lading can be used when faced with slow-paying customers.

Question 71

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 would be entitled to recover the wholesale price plus any freight costs already paid.

Question 72

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

Question 73

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

Question 74

From a carrier perspective,there may be a reluctance to accept small shipments because they tend to require a high degree of manual labor.

Question 75

An order bill of lading specifies the consignee.

Question 76

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