Deck 9: Delivery

Question 1

Marine transportation is:

A) best suited for hauling large tonnage over long distances.
B) disadvantaged because of the need for suitable networks, which are dependent on government support.
C) not well suited for hauling commodities.
D) best suited for hauling large tonnage over long distances and disadvantaged because of the need for suitable networks, which are dependent on government support.
E) disadvantaged because of the need for suitable networks, which are dependent on government support and not well suited for hauling commodities.

Answer 1

D

Question 2

Demurrage charges:

A) are never legitimate because delays are typically caused by the carrier's actions.
B) are insignificant and can easily be justified in the buying organization.
C) discourage the buyer from using a particular carrier.
D) may indicate poor delivery scheduling on the part of the buying organization.
E) are growing because of the lengthy delays in most supply chains.

Answer 2

D

Question 3

Rail is the most flexible mode of transportation and accounts for approximately 80 percent of transportation expenditures by U.S. firms.

Answer 3

False

Question 4

Fuel efficiency and energy consumption considerations:

A) are a factor in transportation strategy development in many organizations.
B) have no impact on transportation strategy in most 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 5

A transportation strategy should include consideration of:

A) safety on the ground, in the air and on water.
B) environmental factors, such as pollution.
C) consolidation of freight.
D) alternative transport modes.
E) safety on the ground, in the air and on water, environmental factors, such as pollution, consolidation of freight and alternative transport modes.

Question 6

Compared to other modes of transportation, motor carriers provide the advantage of:

A) low variable operating costs.
B) flexibility of point-to-point service.
C) energy efficiency.
D) low variable operating costs and flexibility of point-to-point service.
E) flexibility of point-to-point service and energy efficiency.

Question 7

The selection of the FOB point is important to the purchaser, because 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) who pays the carrier, when legal title to goods being shipped passes to the buyer, who is responsible for preparing and pursuing loss or damage claims and who routes the freight.

Question 8

A carrier transports property or people by any means of conveyance.

Question 9

Intermodal freight can be classified as:

A) containers on flatcars (COFC).
B) trailers on flatcars (TOFC).
C) containers on marine vessel (COMV).
D) containers on flatcars (COFC) and trailers on flatcars (TOFC).
E) containers on flatcars (COFC), trailers on flatcars (TOFC) and containers on marine vessel (COMV).

Question 10

A straight bill of lading:

A) is used when the goods have been paid for in advance of shipment and requires delivery.
B) is a negotiable instrument that can be used when goods are purchased on credit.
C) is used to indicate that cargo was loaded onto a named vessel in good condition.
D) is used when the goods have been paid for in advance of shipment and requires delivery, and is a negotiable instrument that can be used when goods are purchased on credit.
E) is a negotiable instrument that can be used when goods are purchased on credit and is used to indicate that cargo was loaded onto a named vessel in good condition.

Question 11

The mode selection decision is independent of the carrier selection decision.

Question 12

Compared to motor carriers, rail:

A) is relatively inflexible and slow.
B) has higher damage rates.
C) is less attractive for hauling large tonnage over long distances.
D) is relatively inflexible and slow, and has higher damage rates.
E) is relatively inflexible and slow, has higher damage rates and is less attractive for hauling large tonnage over long distances.

Question 13

With deregulation of the transportation industry and the development of intermodal service, the focus for the transport buyer is:

A) selecting the best mode of transport.
B) the carrier's ability to handle multiple parts of the logistics process.
C) procuring logistics services at the lowest rates.
D) bringing all logistics activities under the management of the VP of Supply.
E) shifting responsibility for shipper-carrier relationships to the carrier.

Question 14

Motor carriers can be divided into the following categories:

A) less-than-truckload (LTL).
B) truckload (TL).
C) small parcel, ground.
D) less-than-truckload (LTL) and truckload (TL).
E) less-than-truckload (LTL), truckload (TL), and small parcel, ground.

Question 15

Organizations operating under a just-in-time system, prefer to ship by:

A) rail.
B) same day air.
C) truck.
D) next-day air.
E) intermodal carriers.

Question 16

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

Question 17

Supply's role in logistics is principally the acquisition of logistics services.

Question 18

Transportation rates:

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

Question 19

Decreasing total business logistics costs as a percentage of the U.S. GDP may be attributed to:

A) deregulation of the transportation sector.
B) an increase in global supply chains.
C) improved logistics technology systems and e-commerce.
D) deregulation of the transportation sector and an increase in global supply chains.
E) deregulation of the transportation sector, and improved logistics technology systems and e-commerce.

Question 20

Integrated carriers (truck-air), such as UPS and Federal Express, are able to capture a larger market share because they:

A) utilize their own aircraft.
B) have extensive ground networks.
C) have accurate, real-time logistics tracking systems.
D) have extensive ground networks and have accurate, real-time logistics tracking systems.
E) utilize their own aircraft, have extensive ground networks and have accurate, real-time logistics tracking systems.

Question 21

Economic, safety and environmental regulations have been eliminated for most modes of transportation through deregulation during the last 30 years.

Question 22

Marine transport is best suited for products of high value and/or extremely perishable.

Question 23

Compared to motor carriers, rail is better suited for hauling large tonnage over long distances.

Question 24

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

Question 25

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

Question 26

The cost per hundredweight (cwt) is generally higher for LTL shipments compared to TL shipments.

Question 27

Logistics costs can be divided into three categories: inventory carrying costs, administrative costs, and transportation (with transportation costs accounting for the bulk of the costs).

Question 28

Third-party logistics service providers (3PLs) are carriers that always own assets (trucks, airplanes, railcars) and act as intermediaries between trading partners, for example, shippers and carriers.

Question 29

Truckload (TL) shipments are typically for short haul distances compared to less-than-truckload (LTL) shipments.

Question 30

Logistics is the management of inventory in motion and at rest.