Exam 3: Chapter 9

Question 1

Logistics is necessary to?

Answer 1

1. Move goods from suppliers to buyers
2. Move materials through the manufacturing system
3. Move finished goods to the customer

Question 2

What is Time Utility?

Answer 2

Products are delivered at the right time.

Question 3

What is Place Utility?

Answer 3

Products are delivered to the desired location.

Question 4

What are the objectives of Transportation Management?

Answer 4

1. Satisfy customer requirements while minimizing costs providing time and location value
2. Make sure service is provided effectively
3. Ensure enough capacity
4. Keep track of movement and position of goods
5. Identify cost saving and value generation opportunities
6. Avoid liabilities (safety, environment, legal)

Question 5

What is Last Mile logistics?

Answer 5

Shows the process of moving a product from warehouse to transportation to customer/store.
The tracking method you see on Amazon when you purchase a product.

Question 6

What are the four legal classifications of transportation?

Answer 6

Common carriers
Contract carriers
Exempt carriers
Private carrier

Question 7

What is a Common Carrier?

Answer 7

Offer transportation services to all shippers at published rates between designated locations without discrimination.

Question 8

What is a Contract Carrier?

Answer 8

Not bound to serve the general public. Contract carriers serve specific customers under contractual agreements.

Question 9

What are Exempt Carriers?

Answer 9

Exempt from regulation of services & rates & if they transport certain exempt products like produce, livestock, coal, or newspapers.

Question 10

What are Private Carriers?

Answer 10

Not subject to economic regulation & typically transports goods for the company owning the carrier.

Question 11

What are the five modes of transportation?

Answer 11

1. Road
2. Rail
3. Air
4. Water
5. Pipeline

Question 12

What is Intermodal transportation?

Answer 12

Coordinated movement involving multiple modes and containers that can be transferred among the modes.

Question 13

What is the most flexible mode of transportation?

Answer 13

Road

Question 14

What are Less-than-truckload (LTL) & truck-load (TL)carriers?

Answer 14

Small shipments, higher fees

Question 15

What are General freight carriers?

Answer 15

Carry the majority of goods shipped & include common carriers.

Question 16

What are Specialized carriers?

Answer 16

Transport liquid petroleum, agricultural commodities, building materials, & other specialized items.

Question 17

What is Real-time location systems?

Answer 17

On rail cars have helped the problem for rail carriers. It uses active, Wi-Fi-enabled radio frequency identification (RFID) tags to allow tracking of rail cars (and their assets) in real-time.

Question 18

What is the most common measure for water carriers?

Answer 18

TEU (twenty-foot-equivalent)

Question 19

What are the two measurements for water carriers?

Answer 19

TEU (twenty-foot-equivalent)

FEU (Forty-foot Equivalent Unit)

Question 20

What does Intermodel mean?

Answer 20

The use of multiple modes of transportation

Question 21

What are the most common Intermodels?

Answer 21

Trailer-on-flatcar (TOFC) service
Container-on-flatcar (COFC)
Piggy-back service

Question 22

What are RO-ROs?

Answer 22

(Roll-on-roll-off) Containerships truck trailers & containers to be directly driven on & off the ship, without the use of cranes

Question 23

What is the Cost of service pricing?

Answer 23

Varies based on fixed & variable costs (lowest or base price)

Question 24

What is the Value of Service Pricing?

Answer 24

Services priced at market bearing competitive levels (highest price market)

Question 25

What is the Negotiated Pricing?

Answer 25

Prices fall somewhere between above two levels

Question 26

What do Terms of Sale include?

Answer 26

FOB (free on board) destination | FOB origin pricing

Question 27

What is FOB (free on board) destination?

Answer 27

Supplier is legal owner of the product until it safely reaches its destination

Question 28

What is FOB origin pricing?

Answer 28

Goods are the legal responsibility of the buyer at the supplier’s finished goods pickup location

Question 29

The cost of service is the ______ side.

Answer 29

Supply

Question 30

The value of the service is the _____ side.

Answer 30

Demand

Question 31

Rate structure deals with what four factors?

Answer 31

Products Weights & Volume Distances Nodes (origin/destination points)

Question 32

What are the three common Truck and Rail Transport Rates?

Answer 32

Per mile (TL) $/CWT (hundred weight) Flat

Question 33

Basic Ocean charges will include?

Answer 33

``` Ocean base rate Handling charge Security fees Bunker (fuel) charges Documentation charges Port fees Alameda corridor fees ```

Question 34

What are the carrier selection determinants?

Answer 34

``` Price Transit time and reliability Connectivity Capability Accessibility Security ```

Question 35

What are two key transportation documents?

Answer 35

Bill of Lading | Freight Bill

Question 36

What is the Bill of Lading?

Answer 36

Common carrier liable for all losses, damage, or delays in shipment.

Question 37

What is the Freight Bill?

Answer 37

Carrier’s invoice for charges for a given shipment.

Question 38

What are the expectations of liabilty?

Answer 38

``` Acts of God Acts of the public enemy Acts of public authority Acts of the shipper Defects inherent in the goods. ```

Question 39

What is a claim?

Answer 39

A document filed with the carrier to recover monetary losses due to losses, damage, delay or overcharges by the carrier.

Question 40

What is a challenge with claims?

Answer 40

Determining the value of claim and determining responsibility for loss.

Question 41

What is a pro of transportation regulation and deregulation?

Answer 41

Regulation assures adequate transportation service throughout the country - protects consumers in terms of monopoly pricing, safety, and liability

Question 42

What is a con of transportation regulation and deregulation?

Answer 42

Deregulation encourages competition - allows prices to adjust as supply, demand, and negotiations dictate

Question 43

What is Warehousing?

Answer 43

A strategic supply chain service that supports purchasing, production, and distribution activities.