Transportation In A Supply Chain

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Questions Bank

Understanding the Supply Chain
Supply Chain Performance: Achieving Strategic Fit and Scope
Supply Chain Drivers and Metrics
Designing Distribution Networks and Applications to e-Business
Network Design in the Supply Chain
Designing Global Supply Chain Networks
Demand Forecasting in a Supply Chain
Aggregate Planning in a Supply Chain
Sales and Operations Planning: Planning Supply and Demand in a Supply Chain
Coordination in a Supply Chain
Managing Economies of Scale in the Supply Chain: Cycle Inventory
Managing Uncertainty in a Supply Chain: Safety Inventory
Determining the Optimal Level of Product Availability
Transportation in a Supply Chain
Sourcing Decisions in a Supply Chain
Pricing and Revenue Management in a Supply Chain
Sustainability and the Supply Chain

All Questions

Question 1

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Transportation plays a key role in every supply chain because products are usually produced and consumed in the same location.

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Question 2

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A distributor makes investment decisions regarding the transportation infrastructure and then makes operating decisions to try to maximize the return from these assets.

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Question 3

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A carrier uses transportation to minimize the total cost (transportation, inventory, information, and facility) while providing an appropriate level of responsiveness to the customer.

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Question 4

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Transportation is a significant component of the costs incurred by most supply chains.

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Question 5

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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.

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Question 6

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A carrier's decisions are affected by the prices that the market will bear, but not the responsiveness it seeks to provide its target segment.

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Question 7

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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.

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Question 8

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Rail is the dominant mode of freight transportation in the United States and accounts for over 75 percent of the nation's freight bill.

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Question 9

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Quasi-market prices for transportation infrastructure result in higher prices at peak locations and times and lower prices otherwise.

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Question 10

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A milk run is a route in which a truck either delivers product from a single supplier to multiple retailers or goes from multiple suppliers to a single retailer.

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Question 11

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Milk runs reduce outbound transportation costs by consolidating large shipments.

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Question 12

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The most important operational decision related to transportation in a supply chain is the routing and scheduling of deliveries.

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Question 13

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The mode of transportation that results in the lowest transportation cost will lower total costs for a supply chain.

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Question 14

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Ignoring inventory costs when making transportation decisions can result in choices that worsen the performance of a supply chain.

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Question 15

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A dabba uses the Mumbai railway system to carry about 40 lunches each day.

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Question 16

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Firms can significantly reduce the safety inventory they require by physically aggregating inventories in one location, which will also decrease transportation cost.

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Question 17

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Temporal aggregation decreases a firm's responsiveness because of shipping delay but also decreases transportation costs because of economies of scale that result from larger shipments.

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Question 18

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A firm can meet customer needs by using tailored transportation to provide the appropriate transportation choice based on customer and product characteristics, but at a higher cost.

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Question 19

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Tailored transportation is the use of different transportation networks and modes based on customer and product characteristics.

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Question 20

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The use of software to determine transportation routes has been the most common IT application in transportation.

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