chapter 10

1. Procuring inexpensive transportation is the major goal of supply chain managers.

2. Given the availability of information, transportation buying has become comparatively easy.

3. The growth of outsourcing has created transportation challenges.

4. CBP is now enforcing the “48 Hour Rule”.

5. Motor carrier cost is highly variable.

6. Railroad’s length of haul is longer than that of motor carriers.

7. The railroads have not shared in the growth in transportation and so do not have any capacity issues.

8. Nonintegrated air carriers do not supply door-to-door service.

9. Pipeline costs are predominantly fixed.

10. Intermodal growth has been flat.

11. The responsibly for transportation management is typically not assigned to any one management discipline in an organization.

12. Outsourcing transportation is a “buy” decision.

13. All modes of transportation provide the same basic service.

14. Railroads have accessibility limitations.

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.

16. Product value is an important factor in modal selection.

17. Following the trend in deregulation of most transportation modes, freight rate negotiations are being decentralized.

18. The main strategy behind routing guides is to maintain very tight control of transportation costs.

19. A bill of lading can be either straight or order.

20. A carrier is never excused from a claim.

21. A key requirement for service quality monitoring is information.

22. KPI is another term for a shipping document.

23. Transportation efficiency promotes __________ in the supply chain.
a. intermodal demand
b. KPIs
c. capacity
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.

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

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.

27. Which is not a mode of transportation?
a. truck
b. air
c. 3PL
d. pipeline

28. Air carriers were historically looked upon as
a. emergency only carriers.
b. having equipment shortages.
c. a fringe participant.
d. insignificant.

29. Challenges for the trucking industry include
a. lack of flexibility.
b. limited equipment options.
c. oversupply of qualified drivers.
d. competition.

30. Railroads fall into a group called
a. nonintegrated carriers.
b. intermodal operators.
c. natural monopolies.
d. service challenged carriers.

31. Trade imbalances affect
a. water carriers.
b. motor carriers.
c. railroads.
d. pipelines.

32. Which management area in an organization does not normally have transportation responsibility?
a. marketing
b. manufacturing
c. procurement
d. logistics

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.

34. Desirability refers to
a. performance reporting and scorecarding.
b. attractive packaging choices.
c. characteristics that influence modal selection.
d. ride quality.

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.

36. Which of these is not a freight document?
a. routing guide
b. bill of lading
c. freight bill
d. freight claims form