Chapter 8 Homework

Firms that apply a higher inventory carrying cost percent would likely do all of the following, EXCEPT ______.

maximize purchase quantities from suppliers to reduce per unit cost

If you want the consignee to be responsible for goods while they are in-transit you should ship products ______.

to FOB origin

The mode of transportation hauling the most tonnage is:

Truck

Transportation economies of scale results in ______.

shipment per unit cost declines as the size increases

International transportation consolidation and expertise is a service generally provided by ______.

freight forwarder

Which of the following is NOT a driver of consolidation in the third-party logistics industry?

Manufacturing capability.

The land bridge combines sea and rail transport... T/F?

TRUE

Pipeline has the highest dependability and frequency among alternative modes... T/F?

TRUE

To facilitate classification of a large variety of different items being shipped on a single invoice a Traffic Manager may want to consider:

FAK Rates

Which of the following is a risk of outsourcing?

Reduced access to management expertise in the outsourced function.

The majority of the laborers for 3PL and 4PL organizations are typically ______.

Non-union

Which of the following modes of transportation has low fixed and high variable costs?

Air

Which of the following transportation modes is the best for end-to-end delivery?

Motor/Truck

Which of the following modes of transportation has low fixed and medium variable costs?

Motor/Truck

Which of the following are the major reasons for supply chain outsourcing?

To take advantage of operational economies of scale.


To provide more flexibility regarding capacity.


To allow the firm to outsource non-core activities.

Ocean transportation from Asia to the west coast of the US would typically require how much time?

2 months

Intermodal transportation typically consists of using three modes to complete a shipment

False

Which of the following types of service providers is most likely to provide a client firm with the most strategic expertise?

4PL or Logistics integrator

Which combination of transportation operating service characteristics is not correct?

Capability: air is best; truck is worst