Exam 3: Chapter 9 Flashcards
Logistics is necessary to?
- Move goods from suppliers to buyers
- Move materials through the manufacturing system
- Move finished goods to the customer
What is Time Utility?
Products are delivered at the right time.
What is Place Utility?
Products are delivered to the desired location.
What are the objectives of Transportation Management?
- Satisfy customer requirements while minimizing costs providing time and location value
- Make sure service is provided effectively
- Ensure enough capacity
- Keep track of movement and position of goods
- Identify cost saving and value generation opportunities
- Avoid liabilities (safety, environment, legal)
What is Last Mile logistics?
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.
What are the four legal classifications of transportation?
Common carriers
Contract carriers
Exempt carriers
Private carrier
What is a Common Carrier?
Offer transportation services to all shippers at published rates between designated locations without discrimination.
What is a Contract Carrier?
Not bound to serve the general public. Contract carriers serve specific customers under contractual agreements.
What are Exempt Carriers?
Exempt from regulation of services & rates & if they transport certain exempt products like produce, livestock, coal, or newspapers.
What are Private Carriers?
Not subject to economic regulation & typically transports goods for the company owning the carrier.
What are the five modes of transportation?
- Road
- Rail
- Air
- Water
- Pipeline
What is Intermodal transportation?
Coordinated movement involving multiple modes and containers that can be transferred among the modes.
What is the most flexible mode of transportation?
Road
What are Less-than-truckload (LTL) & truck-load (TL)carriers?
Small shipments, higher fees
What are General freight carriers?
Carry the majority of goods shipped & include common carriers.
What are Specialized carriers?
Transport liquid petroleum, agricultural commodities, building materials, & other specialized items.
What is Real-time location systems?
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.
What is the most common measure for water carriers?
TEU (twenty-foot-equivalent)
What are the two measurements for water carriers?
TEU (twenty-foot-equivalent)
FEU (Forty-foot Equivalent Unit)
What does Intermodel mean?
The use of multiple modes of transportation
What are the most common Intermodels?
Trailer-on-flatcar (TOFC) service
Container-on-flatcar (COFC)
Piggy-back service
What are RO-ROs?
(Roll-on-roll-off) Containerships truck trailers & containers to be directly driven on & off the ship, without the use of cranes
What is the Cost of service pricing?
Varies based on fixed & variable costs (lowest or base price)
What is the Value of Service Pricing?
Services priced at market bearing competitive levels (highest price market)
What is the Negotiated Pricing?
Prices fall somewhere between above two levels
What do Terms of Sale include?
FOB (free on board) destination
FOB origin pricing
What is FOB (free on board) destination?
Supplier is legal owner of the product until it safely reaches its destination
What is FOB origin pricing?
Goods are the legal responsibility of the buyer at the supplier’s finished goods pickup location
The cost of service is the ______ side.
Supply
The value of the service is the _____ side.
Demand
Rate structure deals with what four factors?
Products
Weights & Volume
Distances
Nodes (origin/destination points)
What are the three common Truck and Rail Transport Rates?
Per mile (TL)
$/CWT (hundred weight)
Flat
Basic Ocean charges will include?
Ocean base rate Handling charge Security fees Bunker (fuel) charges Documentation charges Port fees Alameda corridor fees
What are the carrier selection determinants?
Price Transit time and reliability Connectivity Capability Accessibility Security
What are two key transportation documents?
Bill of Lading
Freight Bill
What is the Bill of Lading?
Common carrier liable for all losses, damage, or delays in shipment.
What is the Freight Bill?
Carrier’s invoice for charges for a given shipment.
What are the expectations of liabilty?
Acts of God Acts of the public enemy Acts of public authority Acts of the shipper Defects inherent in the goods.
What is a claim?
A document filed with the carrier to recover monetary losses due to losses, damage, delay or overcharges by the carrier.
What is a challenge with claims?
Determining the value of claim and determining responsibility for loss.
What is a pro of transportation regulation and deregulation?
Regulation assures adequate transportation service throughout the country - protects consumers in terms of monopoly pricing, safety, and liability
What is a con of transportation regulation and deregulation?
Deregulation encourages competition - allows prices to adjust as supply, demand, and negotiations dictate
What is Warehousing?
A strategic supply chain service that supports purchasing, production, and distribution activities.
