Deck 9: Domestic U.S.and Global Logistics

Question 1

In Europe, rail transportation tends to be much more prevalent and reliable than rail transportation in the U.S., because European track, facilities, and equipment are newer and better maintained.

Answer 1

True

Question 2

Generally speaking, motor carriers are less expensive than rail carriers to haul goods.

Answer 2

False

Question 3

Foreign-trade zones (FTZs) are secure sites within the European Union under the supervision of the EU Customs and Tarriffs.

Answer 3

False

Question 4

Since the deregulation of transportation in the U.S., negotiating transportation prices has become less common among business shippers and logistics providers.

Question 5

The responsibility of transportation is to create both time utility and place utility, which means that products will be delivered at the right time to the desired location.

Question 6

Poor logistics management can bring a supply chain to its knees, regardless of the quality of the products.

Question 7

International intermediaries can provide shipping, consolidation, and other import and export services.Some examples of these international intermediaries include: NVOCCs and trading companies.

Question 8

Logistics is what creates the efficient flow of goods between supply chain partners, allowing profits and competitive advantage to be maximized.

Question 9

A primary advantage for motor carriers is the weather.

Question 10

Efficient supply chain management distribution requires that modern warehouses concentrate their efforts on a wide array of warehousing and distribution functions like storing purchases, work in progress inventories, and finished goods inventories, receiving shipments, breaking down shipments, repackaging, and the distribution of components.

Question 11

With FOB pricing, a supplier is the legal owner of a product until the product reaches its destination.

Question 12

It can be argued that transportation deregulation is good because it encourages competition and allows prices to adjust as supply, demand, and negotiations dictate.

Question 13

Private warehouses refer to warehouses that are owned by the firm storing the goods.

Question 14

Air Carriers compete most favorably when the distance is long and the shipments are heavy or bulky.
.

Question 15

Limitations of air carrier transport include cost and airport accessibility.

Question 16

When mistakes occur in deliveries along the supply chain, more safety stocks must be held, adversely impacting both customer service levels and costs.

Question 17

A private carrier is subject to economic regulation and typically transports goods for the company owning the carrier.

Question 18

Transportation, warehousing, marketing, and customer service play very significant roles in the logistics function.

Question 19

According to the textbook, the five basic modes of transportation are motor, rail, air, water, and pipeline.

Question 20

A small LTL shipment that originates on a truck in San Francisco and is moved from San Francisco to Las Vegas where it is unloaded and put onto another truck for final shipment to Phoenix would be considered an intermodal shipment since it utilizes more than one vehicle during shipment.

Question 21

Which of the following marked the end of the initial push by Congress to deregulate the entire U.S.transportation industry?

A) The Granger Laws
B) The Transportation Act of 1920
C) The Shipping Act of 1984
D) The Interstate Commerce Act of 2013

Question 22

_______________ carry the majority of the world's water-transported manufactured goods.

A) Supertankers
B) Containerships
C) Barges
D) None of the above

Question 23

Reverse logistics refers to the movement and storage of returned goods.

Question 24

Which of the following modes of cargo transport can be characterized as being the most inexpensive and very slow, yet good for transporting very heavy goods a long-distance?

A) Air Carriers
B) Rail Carriers
C) Water Carriers
D) Motor Carriers

Question 25

The first major transportation regulation in the U.S.was which of the following:

A) Interstate Commerce Act
B) Granger Laws
C) Motor Carrier Act
D) Interstate Initiation Act

Question 26

Which of the following legislative acts is NOT in support of transportation deregulation?

A) Railroad Revitalization and Regulatory Reform Act
B) Staggers Rail Act
C) FAA Authorization Act
D) Reed-Bulwinkle Act

Question 27

Which of the following are intermodal transportation alternatives?

A) Truck trailer-on-flatcar
B) Roll-on-roll-off
C) Piggyback service
D) All of the above

Question 28

Foreign-trade zones are:

A) Secure sites within the U.S. where goods and materials can be assembled and exported without being levied domestic duties or excise taxes
B) Secure sites in foreign countries where goods wait for clearance by importing country
C) Markets in the U.S. where foreign countries set up and sell products
D) Bodies of water where cargo ships are allowed to dock to deliver imported goods

Question 29

________________ are the most flexible mode of transportation and account for 70 percent of all the freight tonnage moved in the U.S.

A) Water Carriers
B) Rail Carriers
C) Air Carriers
D) Motor Carriers

Question 30

______________ creates the efficient flow of goods between supply chain partners, allowing profits and competitive advantage to be maximized.

A) Operations
B) Transportation planning
C) Logistics
D) Procurement

Question 31

Con-way Multimodal and BNSF Logistics are both considered third-party logistics providers.

Question 32

In many cases, reverse logistics is viewed as an unwanted activity of supply chain management.

Question 33

In a 2016 survey of 3PL usage, 70 percent of shippers and 85 percent of 3PL services said the use of 3PLs contributed to higher logistics costs.

Question 34

Transportation management system (TMS) applications allow firms to find carriers, track fuel usage and product movements, and stock the shelves at customers' location.

Question 35

Third-party logistics (3PL) services cannot assist with customs clearance because of strict regulations.

Question 36

An effective reverse logistics process can create goodwill and enhance customers' perceptions of product quality.

Question 37

It is argued that transportation deregulation is good because:

A) It encourages competition
B) It ensures adequate transportation service throughout the country
C) It protects consumers in terms of monopoly pricing
D) All of the above

Question 38

Which of the following is a direct benefit from the adoption of NAFTA?

A) A reduction in illegal immigrants crossing the border from Mexico
B) An increase in manufacturing job opportunities in the U.S.
C) An increase in trade between U.S., Canada, and Mexico
D) An increase in trade between U.S. and China

Question 39

Which of the following would be considered an act of deregulation?

A) Reed Bullwinkle act -legalized rate bureaus or conferences
B) Granger law -Established maximum rates, prohibited discrimination, and forbade mergers for railroads.
C) Trucking Industry Regulatory Reform Act -Motor carriers freed from filing rates with the Interstate Commerce Commission
D) Freight Forwarders Act -Allowed Interstate Commerce Commission control over freight forwarders; controlled entry, rates, and services.

Question 40

In the text, Table 9.1 shows that for-hire logistics expenditures in the U.S., have _____________ in the past thirty-one years.

A) Remained the same
B) Slowly declined
C) More than quadrupled
D) Decreased for the first 10 years, then increased

Question 41

The acts of receiving shipments, breaking down shipments, repackaging shipments, and distributing components to a manufacturing location or finished products to customers by a distribution center is referred to as:

A) Piggy backing
B) Risk pooling
C) Crossdocking
D) Customs Brokering

Question 42

Returns management is also known as _______.

A) Reverse logistics
B) Backward logistics
C) Inverted logistics
D) Waste reduction

Question 43

The following are all examples of lean warehousing capabilities EXCEPT:

A) Decreased assembly operations
B) Greater emphasis on crossdocking
C) Reduced lot sizes and shipping quantities
D) Increased automation

Question 44

What does the term "Zombie Inventory" refer to?

A) Items that show up on the books, but are not on the shelf
B) Unsold products that get packaged and shipped with sold goods
C) Product returns that sit unsold in storerooms
D) Extra items in inventory to help reduce stockouts

Question 45

When mistakes occur in the supply chain, which of the following things might happen?

A) More safety stock must be held
B) Cost may increase due to expedited deliveries
C) Customer service levels drop
D) All of the above

Question 46

___________________ are for-profit organizations that contract out or lease a wide range of light manufacturing, warehousing, and distribution services to other companies.

A) Public warehouses
B) Private warehouses
C) Breakbulk warehouses
D) Consolidation warehouses

Question 47

For integrated supply chains, logistics is considered:

A) Not at all important
B) Somewhat important
C) Important
D) Critically important

Question 48

Which of the following is NOT consistent with a decentralized warehousing system?

A) Higher safety stocks required
B) Shorter lead times
C) Lower transportation fees
D) None of the above

Question 49

A current warehouse system has five warehouses with 4,000 units at each warehouse.The company desires to change to three warehouses to become more centralized and keep the same customer service levels.Determine the average warehouse inventory levels, using the square root rule.(Choose the closest answer.)

A) 6,667
B) 11,619
C) 15,492
D) 25,820

Question 50

Which of the following can aggregate cargo and arrange for the domestic or international shipment of members' cargo at favorable volume rates?

A) Transportation Broker
B) Freight Forwarder
C) Shippers' Associations
D) Integrated Logistics Service Provider

Question 51

Due to the success of NAFTA, the U.S________________.

A) Has decided to extend the agreement until 2025
B) Has free trade agreements in 20 countries
C) Both A & B
D) None of the above

Question 52

Reverse logistics can have a positive impact on the environment through activities such as?

A) Data warehousing
B) Reneging
C) Risk pooling
D) Recycling

Question 53

Does risk pooling favor a centralized or decentralized warehousing system? Why?

Question 54

A ___________________ consolidates large numbers of small shipments to fill entire truck trailers or rail cars to achieve truckload or carload transportation rates.

A) Consolidation forwarder
B) Freight forwarder
C) Transportation broker
D) Load broker

Question 55

Explain some intermodal transportation alternatives.

Question 56

Which of the following international intermediaries helps foreign buyers and sellers find each other and then handles all the shipping arrangements and documentation preparation?

A) Customs broker
B) Foreign freight forwarder
C) Trading company
D) NVOCC

Question 57

Intermodal marketing companies (IMCs) are companies that act as intermediaries between intermodal

A) Trucking companies
B) Railroad companies
C) Waste management companies
D) Warehouse management companies

Question 58

What type of firm would be most interested in using a third-party logistics service?

A) Small firm with no logistics expertise
B) Large integrated global manufacturing company
C) A for-hire transportation company
D) A freight forwarder

Question 59

A product positioned strategy:

A) Places warehouses close to customers
B) Places warehouses midway between the sources of supply and the customers
C) Places warehouses close to the sources of supply
D) None of the above

Question 60

List and explain three capabilities of lean warehousing.

Question 61

Suppose you have a shipment of products that needs to be transported.Explain the type of service that each of the following intermediaries offer?
a.Freight forwarders
b.Transportation brokers
c.Shippers' Associations

Question 62

As a logistics specialist for your organization you are being asked to develop a model, which will aid your company in future global expansion projects.
Answer the following questions as part of your initial step in developing a helpful model.
a.List 5 key components of the local infrastructure that must be investigated before committing to expansion? Why are these important?
b.Provide 4 aspects of government relating to logistics that need to be considered before committing to expansion?

Question 63

Answer the following concerning deregulation in the transportation industry.
a.List the benefits of deregulation in the transportation industry
b.List the disadvantages of deregulation in the transportation industry
c.Give an example of when deregulation led to disastrous consequences

Question 64

Joxcel Corporation is a company that sells an enormous amount of fine jewelry worldwide from its headquarters in Paris, France.Presently 10% of their revenues come from sales in the United States.Joxcel Corporation would like to grow the business by about 200% over the next three years.Presently, a majority of their product is kept in a private warehouse in France.
While the shipments to United States will always be relatively small in size due to the cost and nature of the product, Joxcel Corporation would still like to take advantage of any possible distribution efficiencies by sending their shipments to a distribution center in United States that can then package their small shipments with other jewelry shipments headed towards common retailers and/or wholesalers.In order to do so they'll need to make accommodations for shipment, find retail and wholesale companies willing to distribute their product, find intermediaries to both help export the product out of France and help import the product into the United States.
Based on the above information and your knowledge of international transportation, answer the questions below in the hopes of providing Joxcel Corporation with some preliminary information that will aid them in creating a successful logistical itinerary:
a.Which modes of transportation should be utilized in getting the product from Joxcel Corporation's warehouse in France to a distribution center in United States? Why?
b.Which intermediaries should Joxcel Corporation consider in finding customers in United States and exporting the product out of a France? Why?
c.Which intermediary should Joxcel Corporation consider in helping them import the product into United States? Why?
d.Briefly discuss their warehousing plan.Does it make sense? Why?

Question 65

List the five modes of transportation.For each mode provide a brief description (or examples) of the type of cargo that typically travels via that mode of transport.