Multiple Choice #14

Question 1

The movement of product from one location to another as it makes its way from the beginning of a supply chain to the customer’s hands is referred to as

A) transportation.
B) retailing.
C) distribution.
D) manufacturing.

Answer 1

A) transportation.

Question 2

Transportation plays a key role in every supply chain because

A) products are normally produced and consumed in the same location.
B) products are rarely produced and consumed in the same location.
C) the cost of transportation is inconsequential.
D) transportation is not a factor in determining profitability.

Answer 2

B) products are rarely produced and consumed in the same location.

Question 3

The key players in any transportation that takes place within a supply chain are

A) the shipper and the receiver.
B) the shipper and the supplier.
C) the shipper and the manufacturer.
D) the shipper and the carrier.

Answer 3

D) the shipper and the carrier.

Question 4

Investment decisions regarding the transportation infrastructure (rails, locomotives, trucks, airplanes, etc.) are the primary concern of

A) the shipper.
B) the supplier.
C) the manufacturer.
D) the carrier.

Answer 4

D) the carrier.

Question 5

Which of the following uses transportation to minimize the total cost (transportation, inventory, information, and facility) while providing an appropriate level of responsiveness to the customer?

A) The shipper
B) The supplier
C) The manufacturer
D) The carrier

Answer 5

A) The shipper

Question 6

Which of the following is not a factor that affects carrier decisions?

A) Vehicle-related cost
B) Fixed operating cost
C) Quantity-related cost
D) Transportation cost

Answer 6

D) Transportation cost

Question 7

Which of the following is not a cost the shipper needs to consider when making transportation decisions?

A) Transportation cost
B) Inventory cost
C) Facility cost
D) Quantity-related cost

Answer 7

D) Quantity-related cost

Question 8

The total amount paid to various carriers for transporting products to customers is

A) transportation cost.
B) inventory cost.
C) facility cost.
D) processing cost.

Answer 8

A) transportation cost.

Question 9

The cost of holding inventory incurred by the shipper’s supply chain network is

A) transportation cost.
B) inventory cost.
C) facility cost.
D) processing cost.

Answer 9

B) inventory cost.

Question 10

The cost of various facilities in the shipper’s supply chain network is

A) transportation cost.
B) inventory cost.
C) facility cost.
D) processing cost.

Answer 10

C) facility cost.