Deck 5: Transportation: Overview, Infrastructure, Measures, and Management

Question 1

Transportation is impacted by many factors. Which of the following is not an issue that will impact transportation carriers, shippers and customers of transportation in the near- or short-term?

A) The "Amazon" factor.
B) Climate change.
C) Cost and profitability.
D) Globalization.
E) Omnichannel retailing.

Answer 1

Climate change.

Question 2

Transportation adds value through the creation of various forms of economic utility. Which utility(s) are created or added as a result of transportation?

A) Form utility.
B) Place utility.
C) Possession utility.
D) Time utility.
E) Place utility and time utility.

Answer 2

Place utility and time utility.

Question 3

The first governmental legislation in the United States to regulate transportation was:

A) Act to Regulate Commerce.
B) Elkins Act
C) Motor Carrier Act
D) Shipping Act
E) Transportation Act

Answer 3

Act to Regulate Commerce.

Question 4

Which United States governmental regulation established the Interstate Commerce Commission (ICC)?

A) Act to Regulate Commerce
B) Hepburn Act
C) Mann-Elkins Act
D) Motor Carrier Act
E) Shipping Act

Question 5

Economic deregulation of the transportation industry began in the United States in the late-1970s with the passage of this piece of legislation that significantly deregulated one mode of transport.

A) Airline Deregulation Act
B) Household Goods Transportation Act
C) Motor Carrier Act
D) Staggers Rail Act
E) Ocean Shipping Reform Act

Question 6

If your customers required moderately fast time-in-transit, widespread availability, good consistency of service, door-to-door delivery by one mode, low loss and damage rates, moderate cost, and relatively high flexibility with respect to meeting their needs, which transport mode would be the best choice?

A) Air
B) Motor
C) Pipeline
D) Rail
E) Water

Question 7

If your customers required very fast time-in-transit, good consistency of service, low loss and damage rates, and moderate flexibility with respect to meeting their needs, which transport mode would be the best choice?

A) Air
B) Motor
C) Pipeline
D) Rail
E) Water

Question 8

For shipments of 1,000 miles or more, low to medium value products, large volumes, and items that are not very time sensitive, motor carriers would compete primarily with __________ carriers.

A) Air
B) Pipeline
C) Rail
D) Water
E) Motor carriers do not directly compete with any of the other modes of transport.

Question 9

The only mode of transportation that moves products point-to-point is __________.

A) Air
B) Motor
C) Pipeline
D) Rail
E) Water

Question 10

To achieve a vehicle capable of driving itself, some basic interdependent functions are required. Which of the following would be one of these functions?

A) Monitoring the vehicle movements (Motion planning)
B) Route planning (Navigation)
C) Monitoring the environment through which the vehicle travels (Situational analysis)
D) Managing the execution of pre-planned changes in vehicle speed and direction (Trajectory control)
E) All of these options would be basic interdependent functions.

Question 11

Water transport competes primarily with __________ since the majority of commodities carried by water are semi-processed or raw materials transported in bulk

A) Motor
B) Pipeline
C) Rail
D) Pipeline and rail.
E) Motor and rail.

Question 12

Which of the following would not be an example of a nonoperating third party or ancillary mode?

A) Freight forwarders
B) Intermodal marketing companies
C) Shippers' associations or cooperatives
D) Transportation brokers
E) USPS (Parcel Post)

Question 13

Which mode or ancillary mode has benefitted the most from the development of omnichannel retailing?

A) Air
B) Freight brokers
C) Intermodal marketing companies
D) Small package carriers (e.g., FedEx, UPS)
E) TOFC/COFC (e.g., piggyback)

Question 14

Which of the following is not a strategy or tactic for reducing or relieving motor carrier congestion?

A) Allowing motor vehicles to park curbside in dense urban areas.
B) Charging tolls for entering cities at certain times.
C) Congestion pricing.
D) Demand management.
E) User fees.

Question 15

Which of the following measures or metrics would not be considered a cross-functional metric for evaluating suppliers?

A) Inbound supply chain data.
B) International order/supplier event status.
C) In-transit shipment status.
D) Inventory levels in a local warehouse or distribution center.
E) Supplier quality and manufacturing processes.

Question 16

When soliciting carriers for possible contracting, a standard bid package or request for proposal (RFP) should include all of the following elements except:

A) Description of services.
B) Liability.
C) Vitas of all relevant parties to the contract.
D) Pricing.
E) Tender of goods.

Question 17

In private carriage, which of the following is an incorrect statement?

A) If excess capacity exists, or in some other instances, private fleets can haul products for other unrelated organizations.
B) The organization does not have to own the equipment used to transport the products.
C) Private carriage is also a financial decision that organizations make.
D) Private fleets primarily transport products owned by their organization or are owned by other members of their supply chain.
E) The vast majority of private carriage involves truck transport.

Question 18

Which of the following statements is TRUE?

A) Even with mobile technology and the Internet of Things (IoT), visibility of product shipments is not possible.
B) The most difficult part of the delivery process is delivering the shipment to the final customer, sometimes referred to as the "last mile."
C) The outsourcing of transportation has not been a common practice in the United States; it is a relatively recent phenomenon.
D) Less than one-half of the total world container trade occurs in Asia.
E) Strategic partnerships/alliances do not require a cooperative relationship between shippers and carriers.

Question 19

Which of the following is not a legally defined form of transportation?

A) Common
B) Contract
C) Exempt
D) Private
E) All of the options are legal forms of transportation.

Question 20

Transportation plays a key role in the SCOR Model. In which component(s) of the SCOR Model does transportation play the most significant role?

A) Deliver
B) Return
C) Source
D) Deliver and return.
E) Deliver, return, and source.

Question 21

In the United States, governmental authorities have always viewed the transportation sector as an area that has to be maintained, protected, and promoted.

Question 22

Since the late-1970s, the trend in the United States has been toward less environmental and safety regulation and more economic regulation of transportation.

Question 23

For the majority of customers, time-in-transit is a much more important service attribute than consistency-of-service.

Question 24

With intermodal transportation, two or more modes work closely together in an attempt to utilize the advantages of each mode while at the same time minimizing their disadvantages.

Question 25

Of all of the modes of transportation, air is the most flexible and versatile; that is, it goes anywhere and can carry almost any product.

Question 26

The rail network (e.g., miles of track) in a majority of countries is not nearly as extensive as the road network (e.g., miles of roads).

Question 27

In Western Europe, water carriage is more important than in the United States because of the vast system of navigable waterways and the accessibility to major population centers provided by water routes.

Question 28

Transportation or freight brokers are not legal transportation entities or carriers, but they arrange for the transportation of products for customers and charge a fee for doing so.

Question 29

Freight forwarders purchase transport services from one or more of the transport modes and then consolidate small shipments from a number of shippers into large shipments that move at a lower rate.

Question 30

Drones are classified in the category of unmanned, aerial vehicles and in the United States, must be approved for use by the Federal Aviation Administration (FAA).

Question 31

Using customer scorecards to measure KPIs as requested by the customer would be an example of "managing critical initiatives"in the CSCMP Supply Chain Management Process Standards.

Question 32

The KPIs used in transportation management are basically the same across all firms and industries.

Question 33

As identified in the CSCMP Supply Chain Management Process Standards, good practice occurs when critical success factors are clearly defined with an actual-to-target gap analysis.

Question 34

In transportation mode and/or carrier selection, the final stage of the five distinct stages of the decision process is feedback.

Question 35

Transportation management only includes the administration of outbound shipments and not inbound shipments due to the fact that the volume of outbound shipments is so much larger.

Question 36

Spot pricing, or rates for individual shipments, are always lower than contract rates.

Question 37

Cumulative quantity discounts provide price reductions to the buyer based on the amount of purchases over some prescribed period of time, rather than discounts applied to each order.

Question 38

Simply, F.O.B. pricing determines whether the buyer or seller pays the shipping/transportation costs.

Question 39

Because private transportation carriers transport their own goods and supplies in their own equipment, they are exempt from most government regulation.

Question 40

In transportation pricing, "value-of-service"establishes rates at levels that cover a carrier's fixed and variable costs, plus some profit margin, and it establishes the lower limit of rates.