question

____ refers to the raw materials, component parts, and supplies bought from outside organizations to support a company's operations.

answer

b. Procurement

question

2. Procurement costs often range between ____ of an organization's revenues.

answer

a. 60-80%

question

3. Procurement's historical focus in many organizations was to ____.

answer

d. achieve the lowest possible cost

question

4. Procurement and ____ are viewed as synonymous terms.

answer

c. purchasing

question

5. Which of the following is not a potential benefit associated with procurement cards (p-cards)?

answer

d. Ability to use them in non-domestic markets

question

6. Which of the following is not a potential challenge of using procurement cards (p-cards) in non-domestic markets?

answer

a. Currency differences b. Cultural issues c. Difference in card acceptance policies d. Availability of technology e. All of the above are challenges

question

7. Which of the following is not a potential procurement objective?

answer

e. all are potential procurement objectives

question

8. A focus on satisfying internal customers is associated with which procurement objective?

answer

d. supporting operational requirements

question

9. Buying the right products, at the right price, from the right source, at the right specifications, in the right quantity, for delivery at the right time to the right internal customer is associated with which procurement objective?

answer

b. supporting operational requirements

question

Excess materials refer to stock that exceeds the reasonable requirements of an organization

answer

True

question

____ is often a major shortcoming to many global procurement plans.

answer

Implementation

question

Global procurement refers to buying components and inputs anywhere in the world.

answer

True

question

29. Which of the following is false?

answer

a. In the factor-input strategy, an organization is seeking low costs or high-quality sources of supply. b. Global procurement refers to buying components and inputs anywhere in the world. c. Planning is the first step in global procurement. d. Global procurement is driven by the factor-input and the market-access strategies. e. All are true

question

Implementation is often a major shortcoming to many global procurement plans

answer

true

question

The ways that organizations manage the investment recovery for excess, obsolete, scrap, and waste materials should be influenced by the materials' classification.

answer

True

question

21. ____ is a set of generic standards used to document, implement, and demonstrate quality management and assurance systems.

answer

a. ISO 9000

question

22. Upon achieving ISO 9000 certification, organizations can be recertified every ____ years.

answer

d. 3

question

23. ____ suggests that there will be 3.4 defects, deficiencies, or errors per one million opportunities.

answer

c. Six Sigma

question

25. ____ recognizes U.S. organizations for their achievements in quality and performance.

answer

c. The Malcolm Baldrige National Quality Award

question

28. ____ essentially allows an organization to determine if it complies with its specific quality system, while ____ is more heavily focused on the actual results from a quality system as well as on continuous improvement.

answer

b. ISO 9000; Baldrige Award

question

20. ISO 9000 is a set of generic standards used to document, implement, and demonstrate quality management and assurance systems.

answer

True

question

21. After achieving ISO 9000 certification, organizations can be recertified every three years

answer

True

question

kickbacks

answer

money paid after an exchange

question

27. Which of the following is a procurement-related quality initiative?

answer

a. Lean Six Sigma

question

Multiple sourcing uses more than one supplier in hopes of increased competition, improved market intelligence, and ____.

answer

b. Greater supply risk mitigation

question

obsolete materials

answer

refer to materials that are not likely to ever be used by the organization that purchased it

question

5. Which of the following is not a potential benefit associated with procurement cards (p-cards)?

answer

d. Ability to use them in non-domestic markets

question

6. Which of the following is not a potential challenge of using procurement cards (p-cards) in non-domestic markets?

answer

a. Currency differences b. Cultural issues c. Difference in card acceptance policies d. Availability of technology e. All of the above are challenges

question

Procurement cards

answer

similar to a credit card and are used or organizational purchases

question

5. Procurement and purchasing are viewed as synonymous terms

answer

true

question

9. One of procurement's most important responsibilities involves supplier selection and evaluation.

answer

true

question

2. Procurement costs often range between ____ of an organization's revenues.

answer

a. 60-80%

question

1. ____ refers to the raw materials, component parts, and supplies bought from outside organizations to support a company's operations.

answer

b. Procurement

question

7. Which of the following is not a potential procurement objective?

answer

a. supporting organizational goals and objectives b. managing the supply base c. developing strong relationships with other functional groups d. supporting operational requirements e. all are potential procurement objectives

question

9. Buying the right products, at the right price, from the right source, at the right specifications, in the right quantity, for delivery at the right time to the right internal customer is associated with which procurement objective?

answer

b. supporting operational requirements

question

20. The ____ defines quality as "a subjective term for which each person has his or her own definition."

answer

c. American Society of Quality

question

quality

answer

conformance to mutually agreed upon requirments

question

34. Scrap materials are no longer serviceable, have been discarded, or are a by-product of the production process.

answer

true

question

15. Single sourcing consolidates purchase volume with a single supplier in hopes of increasing cooperation and communication in the supply relationship as well as ____.

answer

d. Lower costs per unit

question

13. Single sourcing consolidates purchase volume with a single supplier with the hopes of enjoying lower costs per unit

answer

true

question

23. Reduced costs and reduced cycle times are two benefits associated with Six Sigma

answer

true

question

23. ____ suggests that there will be 3.4 defects, deficiencies, or errors per one million opportunities.

answer

c. Six Sigma

question

24. Reduced costs, reduced errors and waste, and reduced cycle time are benefits that are associated with ____.

answer

b. six sigma

question

37. Socially responsible procurement refers to procurement activities that meet the ethical and discretionary responsibilities expected by society.

answer

true

question

35. Research suggests that socially responsible procurement consists of ____ dimensions.

answer

c. five

question

17. Supplier development is synonymous with reverse marketing.

answer

true

question

17. A degree of aggressive procurement involvement not normally encountered in supplier selection refers to ____.

answer

b. supplier development

question

18. One reason for the growth of the supplier development concept is that achieving competitive advantage in the supply chain is predicated on purchasers adopting a more aggressive approach

answer

true

question

36. The ways that organizations manage the investment recovery for excess, obsolete, scrap, and waste materials should be influenced by the materials' classification.

answer

true

question

waste materials

answer

materials that have been spoiled, broken or otherwise rendered unfit for use or reclamation

question

What is procurement? What is it's relevance to logistics?

answer

Procurement refers to the raw materials, supplies, and component parts that are brought from outside organizations to support the company's operations. It is relevant to logistics because those goods and services have to be in the supply chain in the same amount that they are needed and when.

question

compare procurement's historical focus to its more strategic orientation today

answer

2) Procurement was the same as purchasing and supply management, historically. Strategically, procurement's main objectives are aiding organizational goals and objectives, managing purchases effectively and efficiently, managing the supply base, developing relationships with other functional groups, and supporting operational requirements.

question

benefits and potential challenges of using electronic procurement cards

answer

3) The benefits of using electronic procurement are as follows: reduction of invoices, quick pay, and increased business relations.

question

discuss three potential procurement objectives

answer

4) Some examples of procurement objectives are as follows: managing the supply base (entails the selection, maintenance, and development of supply sources), developing relationships with other functional groups (cooperation and coordination are very necessary), and supporting organizational goals and objectives (focusing on what the company wants).

question

name and describe the steps in the supplier selection and evaluation process

answer

5) The first step in the supplier selection and evaluation process is to identify the need for supply. This can come from a supply contract or a new product. Second is situation analysis, which focuses on the internal and external factors in the environment that the supply decision will be made in. This includes supply polices and legal issues. Third is to identify and evaluate potential suppliers. A business checks sources for potential supplier information at trade shows and other similar places. Businesses also establish and weight selection criteria, which helps them choose the supplier that best fits them. The fourth step is to select suppliers, which is done in consideration of a company's policies so as to decide which will best work for their business. Lastly, the business evaluates the actual performance of their supplier choice against the expected performance of supplier.

question

distinguish between a single sourcing and multiple sourcing approach

answer

6) A single sourcing approach consolidates purchases with a single supplier that want to lower costs per unit and increase cooperation and communication with the supplier. A multiple sourcing approach involves more than one supplier which holds a greater supply risk mitigation and raises the overall improved market intelligence.

question

what are the two primary approaches for evaluating suppliers? How do they differ?

answer

7) Two primary ways to evaluate suppliers are with relevant selection criteria and assigning weights, or by comparing predicted supplier outcomes with the actual supplier outcomes. The difference between the two is that one bases its decisions on criteria that a company wants for its supplier and the other bases its decisions on the supplier's actual outcomes.

question

...

answer

Some factors that make supplier selection and evaluation difficult are as follows: multiple and different criteria must be made for different suppliers, so there is a lot of work when switching or choosing new suppliers; that some criteria may be contradictory, which means trade-offs aren't considered; business has changed over the year's so new criteria must keep being introduced.

question

...

answer

Supplier development is a degree of aggressive procurement involvement that isn't normally encountered in supplier selection, or a purchaser initiating business with a supplier. This is becoming more prominent because a lot of the time suppliers do not have enough information, purchasers sometimes know benefits unknown to suppliers that that can change accuracy or reduce inventory, and competitive advantage can be raised because suppliers will feel the need to meet all necessary requirements.

question

...

answer

The role of ISO certification in quality management programs is a set of generic standards used to document, implement, and demonstrate quality management and assurance systems. These standards are intended to help companies build quality into the core processors in each department. Although ISO certification continues to becoming more common, it can still be a competitive advantage for some companies

question

...

answer

The issue of quality in procurement represents a delicate balancing act for organizations because if a company or organization decides to purchase an input of a lower quality, then it could possibly risk lowering the quality of the end product, but if they were to buy a product of higher quality then the final product would be better too.

question

...

answer

The significant benefits to Six Sigma programs are as follows: reduced costs, reduced waste products, reduced errors, and reduced cycle time. The most significant drawback to Six Sigma programs are as follows: finding balance between the cultures, getting to management commitment, and investing in the right and required resources.

question

...

answer

Lean Six Sigma is becoming more and more of a focus within many companies. Lean Six Sigma is different from its other components because it recognizes the need to no focus only on quality or speed. Lean Six Sigma's main focus is improving quality that is needed as it relates to responsiveness. Its concept is both internally as well as externally. It pushes the concept out to their suppliers so that it can better align their supply base with Halliburton's (an oilfield services provider) in an effort to better align their supply base because of the increasing demand and supply expectations.

question

...

answer

ISO 9000 allows an organization to decide if it complies with its specific quality system. The Baldrige Award focuses more heavily on the true results from a quality system and its continuous improvement. Moreover, the Baldrige Award tends to be more externally focused with the organizations benchmark themselves instead of organizations from outside of their industry.

question

...

answer

The components of the global sourcing development model presented in this chapter are as follows: planning, specification, evaluation, relationship management, transportation and holding costs, implementation, and monitoring improving.

question

...

answer

a. Planning is the first step in global procurement that involves an honest evaluation of global sourcing opportunities and challenges. The end result of this stage should be a set of global procurement policies and procedures that the same as the organization's objective as a whole. b. Monitoring and improving means that performance measures must be decided upon for the global procurements systems. These measures should also be reviewed on a regular basis. Comparisons can be made between actual performance and expected performance. The results of these comparisons can be used to improve the sourcing process. The percentage of shipments that arrive early or late, completeness of orders, and percentage of orders accepted or rejected on delivery are commonly used performance measures

question

...

answer

Excess, or surplus, refers to stock that goes over the reasonable requirements of an organization, sometimes caused by optimistic demand forecast. Obsolete materials, unlike excess materials, are not likely to be used by the organization that purchased them. Materials that are considered obsolete to one company may be useful to another company. Scrap materials refer to materials that are no longer usable or serviceable, have been discarded or are a by-product of the production process. Waste materials are those that have been spoiled, broken, or anything else that would render them unfit for further use or reclamation. Waste materials have no economic value, unlike scrap materials.

question

...

answer

In the book it says that investment recovery is usually the responsibility of the procurement manager. It could be said that procurement should be responsible for investment recovery; without procurement there wouldn't be scrap, obsolete, surplus, or waste materials to even worry about.

question

...

answer

Some of the ethical issues that are associated with procurement are as follows: Gift giving and receiving, bribes, kickbacks, misuse of information, improper methods of knowledge acquisition, lying or misrepresentation of the truth, lack of product quality, misuse of company assets, conflicts of interest, and activity that creates a potential conflict between one's personal interests and the employer's interests. Bribes are money paid before exchange and kickbacks are money paid after an exchange.

question

...

answer

Diversity includes procurement activities associated with minority or women-owned organizations. (ex. an all-women's exercising club within the company) b. The environment includes considerations such as waste reduction and the design of products for reuse or recycling. (ex. recycling bins throughout the building) c. Human rights include child labor laws as well as sweatshop labor. (ex. child labor avoidance) d. Philanthropy focuses on employee volunteer efforts and philanthropic contributions. (ex. a charity they company gives to) e. Safety concerned with the safe transportation of purchased products as well as the safe operation of relevant facilities (ex. safety courses that are required)

question

1. The creation across the supply chain and its markets of a coordinated flow of demand is the definition of:

answer

c. demand management

question

2. Which of the following is not a basic type of demand forecasting model?

answer

a. exponential smoothing

question

3. Surveys and analog techniques are examples of ____ forecasting.

answer

d. judgmental

question

4. An underlying assumption of ____ forecasting is that future demand is dependent on past demand.

answer

b. time series

question

5. What forecasting technique assumes that one or more factors are related to demand and that this relationship can be used to estimate future demand?

answer

c. Cause and effect

question

6. Which forecasting technique tends to be appropriate when there is little or no historical data?

answer

b. judgmental

question

7. Which of the following is true?

answer

a. computer software for demand forecasting dates back over 30 years b. one challenge to collaborative planning, forecasting, and replenishment is getting supply chain partners to share data c. the Excel software package tends to generate forecasts that generate very little error d. SAP is the most widely used software package for demand forecasting e. All are true

question

8. ____ refers to the management of various activities associated with the order cycle.

answer

d. Order management

question

9. The order cycle is:

answer

c. also called the replenishment cycle

question

10. The order cycle is composed of each of the following except:

answer

c. order retrieval

question

11. Which of the following is false?

answer

a. Some organizations have expanded the order management concept to include the length of time it takes an organization to receive payment for an order b. the order cycle should be analyzed in terms of total cycle time and cycle time variability c. order management has been profoundly impacted by advances in information systems d. the various activities associated with an order cycle are not uniformly agreed upon e. all are true

question

12. Order transmittal is:

answer

b. the series of events that occur between the time a customer places an order and the time the seller receives the order

question

13. In general, there are ____ possible ways to transmit orders.

answer

b. five

question

14. Which of the following is not a possible method of order transmittal?

answer

e. all are methods of order transmittal

question

15. Ordering by ____ can be fast and convenient, but order errors are generally not detected until the order is delivered.

answer

a. telephone

question

16. ____ refers to the time from when the seller receives an order until an appropriate location is authorized to fill the order.

answer

a. Order processing

question

17. Order processing typically involves each of the following activities except:

answer

a. Checking the buyer's ability to purchase b. entering the order into the system c. determining inventory location d. crediting the salesperson with the sale e. all are activities

question

18. Classifying orders according to pre-established guidelines so that a company can prioritize how orders are to be filled refers to ____.

answer

c. order triage

question

19. Order picking and assembly is:

answer

c. the component that follows order processing

question

20. The text suggests that ____ often represents the best opportunity to improve the effectiveness and efficiency of an order cycle.

answer

d. order picking and assembly

question

21. Which of the following is not a characteristic of contemporary voice-based based order picking systems?

answer

d. Easily disrupted by other noises

question

22. Which of the following is not a characteristic of advances in order pick technology?

answer

c. fewer employee accidents

question

23. The final phase of the order cycle is called order ____________.

answer

b. delivery

question

24. The time span within which an order must arrive refers to ____.

answer

b. delivery window

question

25. A commonly used rule of thumb is that it costs approximately ____ times as much to get a new customer as it does to keep an existing customer.

answer

c. five

question

26. The ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience is the definition of:

answer

d. customer service

question

27. Which of the following is not a dimension of customer service?

answer

a. time b. convenience c. dependability d. communication e. all of the above are dimensions

question

28. The percentage of orders that can be completely and immediately filled from existing stock is the ____ rate.

answer

c. order fill

question

29. What component of customer service focuses on the ease of doing business with a seller?

answer

a. convenience

question

30. What are multichannel marketing systems?

answer

b. Separate marketing channels that serve an individual customer

question

31. ____ refers to the allocation of revenues and costs to customer segments or individual customers to calculate the profitability of the segments or customers.

answer

c. Customer profitability analysis

question

32. Which of the following statements is false?

answer

b. objectives are more specific than goals

question

33. ____ refers to a process that continuously identifies, understands, and adapts outstanding processes inside and outside an organization.

answer

b. Benchmarking

question

34. ____ is the process of taking corrective action when measurements indicate that the goals and objectives of customer service are not being achieved.

answer

a. Control

question

35. Which of the following statements is false?

answer

c. approximately 40% of customers who experience a problem with purchases of less than $5 will not do business with that company again

question

1. Which of the following statements is false?

answer

c. a product's chemical characteristics have little or no influence on the way they are handled

question

2. Which of the following statements regarding perishable products is false?

answer

a. they require special packaging b. they require special monitoring c. they require special loading d. they require special storage e. all are true

question

The building blocks concept is associated with which logistics function?

answer

b. packaging

question

___ refers to materials used for the containment, protection, handling, delivery, and presentation of goods.

answer

a. packaging

question

which of the following is not a general function of packaging?

answer

a. to promote b. to protect c. to identify (label) d. all are general functions

question

All of the following are protective functions of packaging except:

answer

a. enclosing the materials b. being tamper-proof c. providing uniform weight distribution d. cushioning the contents e. all are protective functions

question

which of the following is not a type of information that is needed to develop a protective packaging system?

answer

b. the budget for packaging

question

each of the following is a shipping hazard that a package may be exposed to except:

answer

a. retraction

question

Which of the following is false?

answer

b. code numbers are preferable to words for labeling

question

as a general rule, labeling requirements and enforcement ten to be more stringent in ______ countries than in_______ countries.

answer

economically developing; economically developed

question

The Global Harmonized System of Classification and Labeling of Chemicals was developed by the:

answer

United Nations

question

which of the follwing is not a key piecee of classification and labeling information provided by the globally harmonized system of classification and labeling of chemicals?

answer

b. a picture of the chemical or hazardous material

question

a recent study indidcated that over 80% of customers view packaging as

answer

d. a major environmental issue

question

which of the following is not a characteristic of plastic packaging?

answer

a. lack of versatility

question

the text suggests that firms can adopt___ environmentally-friendly packaging strategies.

answer

c. four

question

which of the following is not an environmentally-friendly packaging strategy that firms might adopt?

answer

a. reduce the amount of packing materials used b. use more environmentally-friendly packaging materials c. use reusable containers d. retain or support services that collect the used package and recycle it e. all are strategies

question

___ systems consider the reverse flow of products, their reuse, and the marketing and distribution of recovered products.

answer

closed-loop

question

how many countries in the world do not currently use the metric system of measurement?

answer

b. three

question

what has been described as the "last frontier" of logistics savings opportunities?

answer

c. packaging inefficiencies

question

a "box-maker's certificate":

answer

d. assures railroads and truckers that boxes are sufficiently sturdy to meet their handling requirements

question

a unit load involves:

answer

d. consolidation of several units into larger to improve efficiency in handling and to reduce shipping costs

question

the major advantage of the unit load is:

answer

b. mechanical devices can be substituted for manual labor

question

which of the following is false?

answer

a. the unit load is of limited value to shippers who deal in smaller quantities b. unit loads may discourage pilferage c. the unit load allows mechanical devices to be substituted for manual labor d. pallets suffer from a lack of standardized sizes e. all are true

question

the ___ has established six international pallet size standards.

answer

a. international standards organization

question

the basic unit in unit loading is:

answer

c. a pallet

question

in the united states, the vast majority of pallets are made of:

answer

b. wood

question

a major drawback to metal and platic pallets is their....

answer

c. price

question

because of the height that a pallet takes up in a vehicle or warehouse, a method of achieving the advantages of a pallet without losing space is:

answer

a. slip sheets

question

inflatable____ fill void space and function as both a cushion and a brace.

answer

d. dunnage bags

question

each of the following is a question associated with materials handling, except:

answer

d. how much is the product worth?

question

what do we call the short distance movement that usually takes place within the confines of a building such as a plant or DC and between a building and a transportation service provider?

answer

c. materials handling

question

with respect to density, a vessel loaded with____ is most likely to cube out (cubic capacity is filled before reaching its weight capacity)

answer

b. coal

question

a dry bulk material's ___ is important for determining the quantity that can be stored in a given location.

answer

b. angle of repose

question

the ___ principle of materials handling reminds us that the shortest distance between two point is a straight line.

answer

work

question

which of the following is false??

answer

c. automation refers to equipment that complements, rather than replaces, human contact

question

___is the actual, physical movement of goods and people between two points.

answer

b. transportation

question

there are___ modes of transportation

answer

c. five

question

a 3,047 meter (10,00 foot) runway is significant because it___

answer

c. is generally viewed as a adequate for accommodation existing wide body aircraft

question

rail guage refers to___

answer

a. the distance between the inner sides of two parallel rail tracks

question

in the united states, ___ account for the largest share of ton-miles and___ account for the majority of freight revenues

answer

d. rails; trucks

question

___ is generally the fastest form of transportation for shipments exceeding 600 miles

answer

b. air

question

consignees are:

answer

b. receivers of freight

question

dimensional weight___.

answer

c. considers a shipment's density

question

which of the following is not likely to move by air transportation?

answer

a. wearing apparel b. fruits and vegetables c. cut flowers d. auto parts e. all are likely to move by air

question

Less-than-truckload (LTL) carriers:

answer

b. operate through series of terminals

question

Truckload carriers focus on shipments of greater than ___ pounds

answer

a. 10,000

question

each of the following statements are true, except:

answer

b. a truckload shipment involves only one customer

question

Hours-of-service (HOS) rules and speed limits have long been justified in the motor carrier industry on the basis of___.

answer

c. safety concerns

question

the primary advantage for motor carriers is___.

answer

d. flexibility

question

___ trucking tends to have the highest cost per hundred weight

answer

d. expedited

question

___ is the most reliable form of transportation.

answer

c. pipeline

question

____allows bulk commodities to become liquefiable by grinding the solid material to a certain particle size, mixing it with liquid, transporting it and then decanting the liquid.

answer

b. slurry systems

question

____ have a level of market concentration and dominance that is not found in the other modes.

answer

c. railroads.

question

Which mode is not the "best" or "worst" on any of the six attributes (e.g.,

answer

a. rairoads

question

inland waterways should be dredged to a depth of____ feet, which tends to be the minimum depth required for most barges.

answer

b. nine

question

a____raises or lowers barges so that they can meet the river's level as they move upstream or downstream

answer

d. lock

question

of the modes with vehicles,___offer the greatest capacity (volume that can be carried at one time)

answer

b. water carriers

question

___transportation occurs when two or more modes work closely together in an attempt to utilize the advantages of each mode while at the same time minimizing their disadvantages

answer

c. intermodal

question

what container size is often used to rank water ports and measure containerships?

answer

d. 20 foot container

question

the primary advantage to land bridge service is ____.

answer

b. reduced transit time

question

freight forwarders:

answer

d. consolidate the shipments of several shippers

question

shippers' associations:

answer

b. function in a manner similar to freight forwarders

question

a transportation broker:

answer

a. looks to match a shipper's freight with a carrier to transport

question

firms that specialize in carrying packages that weigh up to 150 pounds are called:

answer

c. parcel carriers

question

what is the largest transportation company (by revenues) in the United States?

answer

d. United Parcel Service

question

the U.S. ___ is the federal government body with primary responsibility for transportation safety regulation

answer

d. department of transportation

question

with respect to U.S. economic regulation, the ___ has primary responsibility for resolving railroad rate and service disputes, reviewing potential rail mergers and some jurisdiction over motor carriers, domestic water transportation, and pipelines.

answer

a. surface transportation board

question

common carriers of transportation have___obligations.

answer

c. four

question

which of the following is not a legal classification of carriers?

answer

a. exempt b. common c. contract d. private e. all are legal classifications

question

private transportation is most prevalent in the ___industry.

answer

b. trucking

question

modes

answer

air land water pipeline

question

ton mile

answer

how many tons time the number of miles

question

truck load (tl)

answer

shipping one truck full of product from customer to customer

question

less than truck load (ltl)

answer

full truck load but different customers pay for whats inside

question

enter modal

answer

2 or more modes of transportation

question

TEU

answer

twenty foot equivalent units

question

land bridge

answer

shipping by water then put on a railroad then back to water

question

3pl

answer

third party logistics: does shipments for companies

question

4pl

answer

fourth party logistics: oversees the 3pl

question

pl

answer

pipeline

question

___refers to the buying and controlling of transportation services by either a shipment or consignee.

answer

a. transportation management

question

in gerneral terms, ____ accounts for about 6% of u.s. Gross Domestic Product.

answer

d. transportation

question

what is the logistics term that signifies the price charged for freight transportation?

answer

c. rate

question

which of the following is not one of the primary factors that transportation rates are based upon?

answer

b. density

question

a ____rate refers to a specific rate for every possible combination of product, weight, and distance.

answer

d. commodity

question

a ___ rate simplifies each of the three primary rate factors--- product, weight, and distance.

answer

a. class

question

which of the following is not a factor used to determine a product's classification?

answer

a. density b. liability to damage and theft c. stowability d. ease of handling e. all are factors used to determine a product's classification

question

___ refers to how heavy a product is in relation to its size.

answer

d. density

question

____refers to how easy a commodity is to pack into a load.

answer

c. stowability

question

freight rates in the United States are often expressed in dollars or cents per:

answer

a. hundredweight

question

Suppose that a particular item is Class 200 according to the National Motor Freight Classification. What is the relationship between this item's rate and the rate for an item in Class 100?

answer

d. The Class 200 rate is higher than the Class 100 rate

question

suppose that there is rate of $75 per hundredweight and you have a 600 pound shipment. What is correct transportation for this shipment?

answer

b. $450

question

the shipment size that equates transportation charges for different weights and weight groups is the___ concept.

answer

c. weight break

question

suppose the LTL is $2.00 per hundreweight, the TL rate is $1.40 per hundredweight and the TL minimum is 18,000 pounds. WHat is the weight break?

answer

c. 12,600

question

which of the following is not a possible payment option (terms of sale) for u.s. domestic shipments?

answer

a. FOB origin. freight collect and charged back

question

with FOB destination, freight prepaid:

answer

the seller pays the freight charges and own the goods in transit

question

which of the following tends to be the most important factor in carrier selection?

answer

a. pricing b. loss and damage performance c. transit time reliability d. financial stability e. none of the above

question

cwt

answer

per hundred weight

question

an ____ refers to a transportation manager who purchases a prespecified level of transportation service and is indifferent to the mode and carrier used to provide the transportation service.

answer

d. amodal shipper

question

the most important single transportation document is the..

answer

a. bill of lading

question

each of the following is true, except:

answer

d. the bill of lading adds to the complexity of the transportation manager's job

question

an order bill of lading is used:

answer

c. when a shipment is started before the buyer is known

question

an invoice submitted by the carrier requesting to be paid is__.

answer

b. a freight bill

question

what is the time limitation within which a freight claim must be filed?

answer

c. nine months form delivery date

question

the ___ was formed by shippers and carriers as a means for settling freight claims disputes.

answer

a. transportation arbitration board

question

if a product destroyed or damaged in transit is intended to be placed into general replacement inventory, then the retailer would likely receive:

answer

d. the wholesale price, plus freight if previously paid.

question

small shipments are defined as those that:

answer

c. weigh more than 150 pounds but less than 500 lbs

question

which of the following statements are false?

answer

a. carriers may be reluctant to accept small shipments because they require a high degree of manual labor b. some carriers believe that they lose money on small shipments c. consolidating small shipments into larger ones could result in poorer service to the final customer d. consolidating small shipments into larger ones likely results in higher inventory carrying costs e. all statements are true

question

demurrage charges are collected by which two modes of transportation?

answer

c. rail; water

question

which of the following statements is false?

answer

b. detention is similar to demurrage, except that detention applies to the pipeline industry

question

__ can be defined as the process of determining how a shipment will be moved between consignor and the consignee or between place of acceptance by the carrier and place of delivery to the consignee.

answer

d. routing

question

a__ provides guidance in terms of shipments information, freight invoicing, and a preferred list of carriers for shipments moving between two points.

answer

a. routing guide

question

which of the following is false?

answer

c. the us federal government first began regulating the transportation of hazardous materials in the 20th century

question

__ is the attempt to locate lost or late shipments

answer

d. tracing

question

____ refers to rapidly moving a shipment through a carrier's system.

answer

a. expediting

question

tracing refers to:

answer

c. locating lost or delayed shipments.

question

free on board.

answer

fob: buyer pays for transportation of the goods

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