Question 1

In the United States, governmental authorities have always viewed the transportation sector as an area that has to be maintained, protected, and promoted.

Accepted Answer

The transportation sector has historically been a focus for U.S. governmental authorities due to its critical role in economic development, national security, and public welfare, leading to various policies and investments to maintain, protect, and promote it.

Question 2

Since the late-1970s, the trend in the United States has been toward less environmental and safety regulation and more economic regulation of transportation.

Accepted Answer

The trend in the United States since the late-1970s has been towards deregulation of economic aspects of transportation, while environmental and safety regulations have generally increased.

Question 3

For the majority of customers, time-in-transit is a much more important service attribute than consistency-of-service.

Accepted Answer

Consistency-of-service is often considered more important than time-in-transit for the majority of customers, as reliable and predictable delivery times can be more valuable than speed alone.

Question 4

With intermodal transportation, 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.

Accepted Answer

Intermodal transportation involves using multiple modes of transport in a coordinated manner to optimize the strengths and mitigate the weaknesses of each mode, such as cost, speed, and accessibility.

Question 5

Of all of the modes of transportation, air is the most flexible and versatile; that is, it goes anywhere and can carry almost any product.

Accepted Answer

Air transportation is not the most flexible or versatile as it is limited by the need for airports and specific infrastructure, and it cannot carry oversized or extremely heavy products like some other modes of transportation such as ships or trains.

Question 6

The rail network (e.g., miles of track) in a majority of countries is not nearly as extensive as the road network (e.g., miles of roads).

Accepted Answer

Road networks are generally more extensive than rail networks due to their flexibility, accessibility, and the need to connect more locations, including rural and urban areas.

Question 7

In Western Europe, water carriage is more important than in the United States because of the vast system of navigable waterways and the accessibility to major population centers provided by water routes.

Accepted Answer

Western Europe has a dense network of navigable rivers and canals that connect major cities, making water carriage a vital mode of transportation for goods and people.

Question 8

Transportation or freight brokers are not legal transportation entities or carriers, but they arrange for the transportation of products for customers and charge a fee for doing so.

Accepted Answer

The answer of Transportation or freight brokers are not legal...

Question 9

Freight forwarders purchase transport services from one or more of the transport modes and then consolidate small shipments from a number of shippers into large shipments that move at a lower rate.

Accepted Answer

Freight forwarders act as intermediaries, consolidating smaller shipments into larger ones to take advantage of lower bulk shipping rates, thus optimizing costs and efficiency for shippers.

Question 10

Drones are classified in the category of unmanned, aerial vehicles and in the United States, must be approved for use by the Federal Aviation Administration (FAA).

Accepted Answer

The FAA regulates the use of drones, which are considered unmanned aerial vehicles, to ensure safety and compliance with airspace regulations in the United States.

Question 11

Using customer scorecards to measure KPIs as requested by the customer would be an example of "managing critical initiatives"in the CSCMP Supply Chain Management Process Standards.

Accepted Answer

The answer of Using customer scorecards to measure KPIs as...

Question 12

The KPIs used in transportation management are basically the same across all firms and industries.

Accepted Answer

KPIs in transportation management can vary significantly across different firms and industries due to varying business goals, operational processes, and industry-specific requirements.

Question 13

As identified in the CSCMP Supply Chain Management Process Standards, good practice occurs when critical success factors are clearly defined with an actual-to-target gap analysis.

Accepted Answer

The CSCMP Supply Chain Management Process Standards emphasize the importance of defining critical success factors and conducting an actual-to-target gap analysis to identify areas for improvement and ensure alignment with strategic goals.

Question 14

In transportation mode and/or carrier selection, the final stage of the five distinct stages of the decision process is feedback.

Accepted Answer

The final stage in the decision-making process for transportation mode and/or carrier selection is feedback, which involves evaluating the performance and making necessary adjustments for future decisions.

Question 15

Transportation management only includes the administration of outbound shipments and not inbound shipments due to the fact that the volume of outbound shipments is so much larger.

Accepted Answer

Transportation management includes both inbound and outbound shipments, as managing the entire supply chain efficiently requires oversight of all transportation activities, regardless of volume.

Question 16

Spot pricing, or rates for individual shipments, are always lower than contract rates.

Accepted Answer

Spot pricing can be higher or lower than contract rates depending on market conditions, demand, and supply factors at the time of shipment.

Question 17

Cumulative quantity discounts provide price reductions to the buyer based on the amount of purchases over some prescribed period of time, rather than discounts applied to each order.

Accepted Answer

Cumulative quantity discounts are designed to encourage buyers to purchase more over time by offering discounts based on the total volume purchased within a specified period, rather than on individual orders.

Question 18

Simply, F.O.B. pricing determines whether the buyer or seller pays the shipping/transportation costs.

Accepted Answer

F.O.B. (Free On Board) pricing specifies who is responsible for shipping costs and at what point the ownership of goods transfers from seller to buyer.

Question 19

Because private transportation carriers transport their own goods and supplies in their own equipment, they are exempt from most government regulation.

Accepted Answer

Private transportation carriers are not exempt from most government regulation. They are subject to regulations governing safety, environmental protection, and economic fairness.

Question 20

In transportation pricing, "value-of-service"establishes rates at levels that cover a carrier's fixed and variable costs, plus some profit margin, and it establishes the lower limit of rates.

Accepted Answer

The "value-of-service" pricing establishes rates based on the perceived value to the customer, not necessarily covering costs or setting a lower limit. It is more about what the market can bear rather than cost coverage.

Quiz 5: Transportation: Overview, Infrastructure, Measures, and Management