chapter 10


Flashcards on chapter 10, created by Perla Soto Valle on 03/11/2016.
Perla Soto Valle
Flashcards by Perla Soto Valle, updated more than 1 year ago
Perla Soto Valle
Created by Perla Soto Valle about 7 years ago

Resource summary

Question Answer
1. Procuring inexpensive transportation is the major goal of supply chain managers. F
2. Given the availability of information, transportation buying has become comparatively easy. F
3. The growth of outsourcing has created transportation challenges. T
4. CBP is now enforcing the “48 Hour Rule”. F
5. Motor carrier cost is highly variable. T
6. Railroad’s length of haul is longer than that of motor carriers. T
7. The railroads have not shared in the growth in transportation and so do not have any capacity issues. F
8. Nonintegrated air carriers do not supply door-to-door service. T
9. Pipeline costs are predominantly fixed. T
10. Intermodal growth has been flat. F
11. The responsibly for transportation management is typically not assigned to any one management discipline in an organization. F
12. Outsourcing transportation is a “buy” decision. T
13. All modes of transportation provide the same basic service. T
14. Railroads have accessibility limitations. T
15. Some companies like PepsiCo have chosen to move freight on company operated equipment, despite the fact that these private fleets cost more than for-hire carriers. F
16. Product value is an important factor in modal selection. T
17. Following the trend in deregulation of most transportation modes, freight rate negotiations are being decentralized. F
18. The main strategy behind routing guides is to maintain very tight control of transportation costs. F
19. A bill of lading can be either straight or order. T
20. A carrier is never excused from a claim. F
21. A key requirement for service quality monitoring is information. T
22. KPI is another term for a shipping document. F
23. Transportation efficiency promotes __________ in the supply chain. a. intermodal demand b. KPIs c. capacity d. competition d. competition
24. The distances in today’s global supply chains produce a. higher cost. b. longer transit times. c. more disruptions. d. all of these. d. all of these.
25. Economic deregulation sparked competition among carriers in several areas. Which of these is not an area of competition? a. accessibility b. pricing c. performance d. services a. accessibility
26. Security legislation a. has not had much impact on transportation carriers. b. has caused some firms to stop offshore sourcing. c. has caused expense issues for carriers. d. has created unnecessary restrictions of legitimate trade. c. has caused expense issues for carriers.
27. Which is not a mode of transportation? a. truck b. air c. 3PL d. pipeline c. 3PL
28. Air carriers were historically looked upon as a. emergency only carriers. b. having equipment shortages. c. a fringe participant. d. insignificant. a. emergency only carriers.
29. Challenges for the trucking industry include a. lack of flexibility. b. limited equipment options. c. oversupply of qualified drivers. d. competition. d. competition.
30. Railroads fall into a group called a. nonintegrated carriers. b. intermodal operators. c. natural monopolies. d. service challenged carriers. c. natural monopolies.
31. Trade imbalances affect a. water carriers. b. motor carriers. c. railroads. d. pipelines. a. water carriers.
32. Which management area in an organization does not normally have transportation responsibility? a. marketing b. manufacturing c. procurement d. logistics b. manufacturing
33. Terms of sale establish a. when ownership and title of the goods passes from seller to buyer. b. what must be shown on the bill of lading. c. which transportation mode must be used. d. who handles freight claims. a. when ownership and title of the goods passes from seller to buyer.
34. Desirability refers to a. performance reporting and scorecarding. b. attractive packaging choices. c. characteristics that influence modal selection. d. ride quality. c. characteristics that influence modal selection.
35. The main strategy behind routing guides is to a. maintain exact control. b. comply with or enforce FOB terms. c. promote supply chain excellence. d. select between modes. c. promote supply chain excellence.
36. Which of these is not a freight document? a. routing guide b. bill of lading c. freight bill d. freight claims form a. routing guide
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