Question 1

With respect to the following operating service characteristics of the modes of transportation,which combination is CORRECTLY specified?

Accepted Answer

According to the given characteristics, air transportation has the highest speed which makes it the best option for fast delivery. On the other hand, pipeline transportation has the lowest speed due to its infrastructure limitations.

Question 2

Logistics is responsible for all of the following EXCEPT:

Accepted Answer

Logistics involves the management of the flow of goods and services from the point of origin to the point of consumption. It includes activities such as transportation, warehousing, inventory management, and order fulfillment. However, setting product quality standards is typically the responsibility of the quality control or product development team.

Question 3

Which of the following is NOT a role of logistics management?

Accepted Answer

Selecting suppliers for parts and components is a role of procurement management, not logistics management. The other three options are all roles of logistics management.

Question 4

Jones Company decided to limit deliveries to selected areas to specific days of the week to save money on transportation.This is an example of:

Accepted Answer

Scheduled delivery consolidation is when a company limits deliveries to specific days of the week in order to save money on transportation. This allows them to consolidate their deliveries into fewer trips, which reduces transportation costs. Market consolidation refers to the process of combining multiple markets into one, while pooled delivery consolidation involves combining shipments from multiple customers into one delivery. Transportation consolidation involves combining shipments from multiple suppliers into one shipment. None of these options fit the scenario described in the question.

Question 5

Logistics management is important to an organization because:

Accepted Answer

Logistics management is crucial because it directly impacts customer service by ensuring timely and efficient delivery of products and services.

Question 6

The Williams Co.combines all of its orders going to Tokyo,Japan,during the month into a single shipment.This is an example of:

Accepted Answer

Market area consolidation involves combining shipments going to the same area to save on transportation costs, which is what The Williams Co. is doing by combining all orders to Tokyo into a single shipment.

Question 7

All of the following can improve order processing EXCEPT:

Accepted Answer

Increasing the number of orders entered manually will not improve order processing, as it is prone to errors and takes more time compared to automation or integration of internal information systems. The other options (B, C, and D) will improve order processing by making it more efficient and streamlined.

Question 8

Which of the following is NOT an activity of integrated logistics management?

Accepted Answer

Integrated logistics management focuses on coordinating and optimizing logistics functions such as transportation, order processing, and warehouse management. Selecting raw material suppliers is a purchasing or procurement function and is not directly related to logistics management.

Question 9

Suppose you are shipping 1,000 pounds of product to a customer location that is 500 miles away from you.The customer calls you and increases the order size to 10,000 pounds.In this case:

Accepted Answer

Increasing the order size allows for the fixed costs of transportation to be spread over a larger quantity of goods, thus reducing the cost per pound of transportation.

Question 10

Zanda Corp.can make three individual deliveries to three different customers at a cost of $500 each or can consolidate them into one shipment with a cost of $1,300 and a stop-off charge of $100 per stop.Should Zanda do this?

Accepted Answer

Consolidating the shipments results in a cost of $1,300 plus $300 for the three stop-off charges, totaling $1,600. Individually, the deliveries would cost $1,500 ($500 each). Therefore, consolidating increases the cost by $100.

Question 11

All of the following are safety and security regulations EXCEPT:

Accepted Answer

The other options listed (A, B, and D) are all safety and security regulations that are commonly enforced in logistics and transportation industries, but there are no restrictions on who can form a logistics company.

Question 12

Bowling Green Manufacturing Co.has three orders to be shipped to different customers located in Seattle,Washington.The weights of the respective orders are 13,000 pounds,9,000 pounds,and 10,000 pounds.The cost to ship each order individually is $17 per 100 pounds.The shipments can be consolidated into a single order for a cost of $14 per 100 pounds with an additional charge of $250 per stop.Should the shipments be consolidated?

Accepted Answer

To ship the orders individually, the cost for each order will be:

1. 13,000 pounds: 130 * $17 = $2,210
2. 9,000 pounds: 90 * $17 = $1,530
3. 10,000 pounds: 100 * $17 = $1,700

Total cost = $2,210 + $1,530 + $1,700 = $5,440

To consolidate the orders, the total weight will be 13,000 + 9,000 + 10,000 = 32,000 pounds. The cost will be:

1. Consolidation cost: 32 * $14 = $448
2. Additional charge for one stop: $250

Total cost = $448 + $250 = $698

Thus, consolidating the orders will be cheaper by $5,440 - $698 = $4,742

Therefore, the best choice is option C.

Question 13

Generally,the most expensive transportation mode (from among the following choices)is:

Accepted Answer

Air transportation is generally the most expensive mode of transportation due to the high cost of fuel and the technical equipment required for safe and efficient operations. It is usually the fastest mode of transportation and is commonly used for goods that require urgent delivery or are perishable.

Question 14

With respect to the following operating service characteristics of the modes of transportation,which combination is INCORRECTLY specified?

Accepted Answer

Capability refers to the amount of goods that can be transported by a mode of transportation. Pipeline is best in terms of capability as it can transport large volumes of liquids, gases, and minerals. Water transport is also capable of transporting large quantities, so it is not the worst in terms of capability. Therefore, the combination specified in option C is incorrect.

Question 15

Falcon Enterprises has four orders to be shipped to different customers located in Houston,Texas.The weights of the respective orders are 4,000 pounds,5,000 pounds,8,000 pounds,and 6,000 pounds.The cost to ship each order individually is $12 per 100 pounds.The shipments can be consolidated into a single order for a cost of $10 per 100 pounds with an additional charge of $200 per stop.Should the shipments be consolidated?

Accepted Answer

The answer of Falcon Enterprises has four orders to be...

Question 16

Economic deregulation of transportation can:

Accepted Answer

The answer of Economic deregulation of transportation can:
...

Question 17

With respect to transportation regulation today in the United States:

Accepted Answer

There is more safety/social regulation than ever before in transportation today in the United States. This is reflected in strict safety standards and requirements for various modes of transportation, such as air travel and commercial trucking. In recent years, there have also been efforts to regulate ride-sharing companies, such as Uber and Lyft, to ensure passenger safety. However, there has been a trend towards reducing economic regulation in transportation, as seen in the deregulation of the airline industry in the 1970s and the trucking industry in the 1980s.

Question 18

Smith Company learned that several other shippers in its hometown had customers located in the same markets that it serves.With this information,Jones should investigate the possibility of:

Accepted Answer

Pooled delivery consolidation involves combining shipments from different companies that are going to the same area, which can be more efficient and cost-effective. Since Smith Company and other shippers serve the same markets, this approach could be beneficial.

Question 19

Miller Corp.can make three individual deliveries to three different customers at a transportation cost of $600 each or can consolidate them into one shipment with a transportation cost of $1,200 and a stop-off charge of $100 per stop.Should Miller Corp.consolidate the shipments?

Accepted Answer

Consolidating the shipments would cost $1,200 for the shipment plus $300 for three stop-offs ($100 each), totaling $1,500. Individually, the shipments would cost $600 each, totaling $1,800. Therefore, consolidating saves $300 ($1,800 - $1,500).

Question 20

Which of the following is an example of economic regulation?

Accepted Answer

Restrictions on the type of logistics services a provider can offer is an example of economic regulation. This type of regulation involves government intervention in commercial activities to promote economic efficiency and/or protect consumers. In this case, the government is limiting the types of services a logistics provider can offer to ensure fair competition and prevent monopolies. Choices A, B, and C are examples of safety and security regulations, not economic regulations.

Quiz 9: Customer Service Management