Test Database
Chapter 13 – Transportation Management
True or False
1.
2.
3.
4.
5.
6.
Transportation plays a key role in product distribution because products are
usually produced and consumed in the same location.
a.
True
b.
False
The vehicle-related cost is incurred whether the vehicle is operating or not
and is considered fixed for short-term operational decisions by the carrier.
a.
True
b.
False
Trip-related cost depends on the length and duration of the trip but is independent of the quantity shipped.
a.
True
b.
False
Transportation cost depends on the prices offered by different carriers and the
extent to which the shipper uses inexpensive and slow, or expensive and fast,
means of transportation.
a.
True
b.
False
Railroads are the dominant mode of transportation in the United States and
account for more than 75 percent of the nation’s freight bill.
a.
True
b.
False
By aggregating inventory in one central location, a business will decrease
transportation cost.
a.
True
2
b.
7.
8.
9.
False
Tailored transportation is the use of different transportation networks and
modes based on customer and product characteristics.
a.
True
b.
False
Optimally, the aggregate unit load of a shipment should consume all available
vehicle capacity.
a.
True
b.
False
A critical advantage of rail transport is its ability to provide supply-point-tosupply-point service.
a.
True
b.
False
10. As distance increases, transport variable costs can be spread over more miles.
a.
True
b.
False
Multiple Choice
11. Transportation plays a key role in channel logistics management because
a. Products are normally produced and consumed in the same location.
b.
Products are rarely produced and consumed in the same location.
c.
The cost of transportation is a minor element in logistics management.
d. Transportation plays a minor role in logistics strategy.
12. Which of the following is a serious drawback of water transport?
a. Limited accessibility
3
b.
High cost
c.
Port requirements
d.
Use of containers
13. Which of the following activities would all be included in a traffic department?
a.
Rating shipments, handling freight claims, preparing documentation
b.
Preparing documentation, selecting carriers, picking customer orders
c.
Tracking shipments, handling freight claims, delivering goods
d.
Tracking shipments, packing orders for delivery, preparing documentation
14. The party that requires the movement of the product between two points in
the channel network is?
a.
The supplier.
b.
The manufacturer.
c.
The carrier.
d.
The shipper.
15. The price of labor and fuel incurred for each trip independent of the quantity
transported is included in
a.
Vehicle-related costs.
b.
Fixed operating cost.
c.
Trip-related cost.
d.
Overhead cost.
16. Which mode of transportation is the most expensive?
a.
Air
b.
Motor
c.
Railroad
d.
Water
3
4
e.
Pipeline
17. Cheaper modes of transportation typically are characterized by
a.
Shorter lead times and smaller minimum shipment quantities.
b.
Shorter lead times and larger minimum shipment quantities.
c.
Longer lead times and smaller minimum shipment quantities.
d.
Longer lead times and larger minimum shipment quantities.
18. One of the major problems with operating a private fleet is solving the problem of
a.
Deadhead.
b.
Deadweight.
c.
Payload.
d.
Freight consolidation.
19. The transportation participant that ships the goods is called the
a.
Consignor.
b.
Carrier.
c.
Consignee.
d.
Service agent.
20. The fee charged by railroad companies for customers’ use of railcars as storage is termed
a.
Detention.
b.
Demurrage.
c.
Diversion.
d.
Reconsignment.
21. Determining an alternative location for a shipment after receipt is termed
a.
Detention.
b.
Demurrage.
5
c.
Diversion.
d.
Reconsignment.
22. Which of the following statements is true?
a.
Railroads are best at moving small volumes of bulky goods over short
distances.
b.
Motor transport is the least flexible of all the modes.
c.
Air cargo should be used for fast service over short distances.
d.
Water transport should be used to move large volume, low cost commodities over long distances
23. A shipper moving a small quantity of expensive goods from New York to Los
Angeles would likely use
a.
Air transport
b.
Motor transport
c.
Rail transport
d.
Water transport
24. Which of the following modes of transportation will provide the best service
capability?
a.
Common
b.
Contract
c.
Private
d.
Exempt
25. Which mode of transportation would cost the least per ton mile?
a.
b.
c.
d.
Air
Motor (trucks)
Rail
Water
5
6
26. Splitting a large shipment into smaller loads because of limitations in vehicle
capacity is a violation of which of the following transportation principles?
a.
b.
c.
d.
Continuous flow
Maximum vehicle unit
Optimize unit of cargo
Match vehicle to the nature of the traffic
27. The statement, “as the travel distance increases, the transportation cost curve
increases at a decreasing rate,” is known by which principle:
a.
b.
c.
d.
Distance
Tapering
Weight
Density
28. The most important operational decision related to transportation is
a.
Minimizing the cost of transportation
b.
Maximizing profitability
c.
Reducing the level of cycle inventory
d.
The routing and scheduling of deliveries
29. Which one of the following transportation operations principles considers
both weight and volume planning for transportation?
a.
Distance
b.
Weight
c.
Density
d.
Stowability
30. The vehicle dispatching problem is described as
a.
Establishing a route serving a single customer that minimizes delivery
costs within vehicle payload and distance constraints
b.
Establishing a route serving a number of customers that minimizes delivery costs within vehicle payload and distance constraints
7
c.
Establishing a route serving a number of customers that minimizes delivery costs within vehicle constraints
d.
Establishing a route serving a number of customers that minimizes delivery costs within vehicle payload constraints
7
8
Answer Key
1. F
2. T
3. T
4. T
5. F
6. F
7. T
8. T
9. F
10. F
11. b
12. a
13. a
14. d
15. c
16. a
17. d
18. a
19. a
20. b
21. d
22. d
23. a
24. c
25. d
26. b
27. b
28. d
29. c
30. b