Question 1

Chrysler manufactures cars in Detroit and loads them on truck trailers at the factory. Burlington Northern Santa Fe (BNSF) picks up the truck trailers, loads them on specially designed rail flatcars, and ships them to St. Louis. There they are delivered by truck to local dealers. This transportation process is:

Accepted Answer

The process described is piggyback transportation, which involves loading truck trailers onto specially designed rail flatcars for transportation.

Question 2

Regarding transportation modes, which of the following statements is NOT true?

Accepted Answer

Airfreight is generally more expensive than truck transportation, especially for long distances.

Question 3

A major benefit of _____ is that it protects the products and simplifies handling during shipping.

Accepted Answer

Containerization is the process of packing goods in standard-sized containers for transportation. This method provides protection to the products and simplifies the handling during shipping as the containers can be easily moved between different modes of transportation like ships, trucks, and trains.

Question 4

Containerization:

Accepted Answer

Containerization is commonly used for international shipments, including those from Japan, as it allows for efficient and secure transport of goods across different modes of transportation.

Question 5

Regarding alternative transporting modes, which of the following statements is TRUE?

Accepted Answer

Airways are generally the most expensive mode of transport due to the high costs associated with aircraft operation and maintenance.

Question 6

Airfreight

Accepted Answer

Airfreight can help reduce inventory costs by allowing for faster delivery times, which can reduce the amount of inventory that needs to be kept on hand. However, it generally has higher rates than trucking and may not be able to serve certain remote locations as efficiently. It also may not be the best option for delivering extremely heavy or oversized goods. Therefore, options A, B, and C are not accurate. Option D is potentially true, but not necessarily always the case.

Question 7

What is the best way to ship Spring tulips from Amsterdam, Netherlands, to Rome, Italy?

Accepted Answer

Air transportation is the best option for shipping tulips from Amsterdam to Rome due to its speed and efficiency. Tulips are delicate flowers that require careful handling and fast transit time, which can only be ensured by air transport. Water, truck, rail, and pipeline would either take too long or not provide the appropriate conditions for the tulips to remain fresh and intact during transportation.

Question 8

Why would Coca-Cola want to encourage its customers to store product in their homes?

Accepted Answer

Storing products at home typically leads to increased consumption as the product is readily available, leading to repeat purchases and higher overall sales for Coca-Cola.

Question 9

Inventory refers to

Accepted Answer

Inventory refers to the amount of goods being stored, whether it is raw materials, work-in-progress, or finished products. It is a measure of the company's investment in its stock of goods.

Question 10

The railroad service which picks up truck trailers at a producer's location, loads them onto rail flatcars, hauls them close to the customer, and then delivers them to the buyer's door is:

Accepted Answer

The service described is piggyback service, as it involves transporting truck trailers on rail flatcars.

Question 11

Storing:

Accepted Answer

Storing is necessary when production does not match consumption because it allows for the holding of goods until they are needed, ensuring a balance between supply and demand.

Question 12

Using airfreight instead of some other mode of transporting may result in:

Accepted Answer

Airfreight can lead to lower packing costs because items do not need to be packed as heavily as for other modes of transport. It can also result in lower total cost of distribution when considering factors like faster delivery times and reduced inventory carrying costs. Less damage in transit is often observed due to the smoother handling and transportation process. However, airfreight typically incurs higher transporting costs compared to sea, rail, or road transport.

Question 13

A footwear company specializing in the production of ballet shoes normally produces shoes only in women's and girl's sizes. The company is hired by several customers to produce shoes in men's and boy's sizes. Which of the following should the manufacturer consider in order to achieve economies of scale in shoe production?

Accepted Answer

The manufacturer should consider the cost of producing one size shoe at a time in large quantities and storing them for future sales in order to achieve economies of scale. This is because producing shoes in bulk quantities can help to reduce production costs and increase the efficiencies of production processes. Additionally, storing the shoes for future sales can help to ensure that the manufacturer is able to fulfill orders quickly and efficiently, thereby reducing lead times and improving customer satisfaction. Factors such as shipping costs, plant retooling efforts, shoe storage costs, and customer acquisition costs are also important considerations, but they are secondary to the need to achieve economies of scale in shoe production.

Question 14

Regarding alternative transporting modes, which of the following statements is TRUE?

Accepted Answer

All of these statements are true. Waterways are often the cheapest option for heavy freight, airways are the quickest, pipelines are reliable for transporting oil and natural gas, and trucks serve the most locations.

Question 15

A train carries truck trailers long distances. The trailers are then offloaded, attached to truck tractors, and the tractor-trailer combinations are driven to their final destination. This practice is known as:

Accepted Answer

Piggyback service involves carrying truck trailers on a train and then offloading them to be connected to truck tractors for the final leg of the journey. Containerization involves the use of standardized containers for shipping goods. Freight forwarding involves the coordination and management of shipments from various origins to destinations. "Long hauling" is not a commonly used industry term.

Question 16

A tire manufacturer currently produces tires in small quantities as they are ordered. The company learns that it can reduce costs significantly by producing one type of tire at a time in large quantities and storing its unsold tires for later sale. Should the company switch to large quantity production?

Accepted Answer

The company should only switch to large quantity production if the economies of scale in production are greater than the additional inventory carrying cost. This is because storing unsold tires will incur additional costs, and the cost savings from large quantity production should be greater than these carrying costs. Additionally, the option of providing tires as they are ordered may be impacted by the switch, as the company will have a stockpile of unsold tires. The other answer choices do not fully consider the costs and benefits of the switch to large quantity production.

Question 17

Piggyback service means

Accepted Answer

Piggyback service refers to the practice of loading truck trailers or shipping containers onto railcars. This method combines the flexibility of road transportation with the efficiency and cost-effectiveness of rail transport, allowing for more versatile and potentially faster shipping options over long distances.

Question 18

Jackie works in transportation for a company that ships expensive, high quality fish all across the United States. The perishable nature of her product, the value of freshness, and the high prices she charges would lead you to recommend which transportation mode?

Accepted Answer

Airfreight is the best choice in this case, as it is the fastest mode of transportation, ensuring the freshness of the product. It also has the added benefit of being able to reach any location in the US quickly, maintaining the value of the product.

Question 19

Air express companies place many small packages into specially designed cylinders that conform to the interior dimensions of a cargo airplane. This practice protects the smaller packages and helps to reduce distribution costs. The air express companies are practicing:

Accepted Answer

Containerization refers to the practice of grouping smaller packages into larger containers or units for easier handling, protection, and lower shipping costs. This matches precisely with the description provided in the question of air express companies placing small packages into specially designed cylinders for shipment. Therefore, the correct answer is A) Containerization.

Question 20

When Sony manufactures and packages DVD players in Japan, stores them in large 8'x8'x20' "boxes," and then ships these boxes to Los Angeles by boat, this is an example of:

Accepted Answer

Containerization refers to the process of using large standardized containers for the movement of goods. In this case, Sony is using large boxes to ship their DVD players.

Quiz 11: Distribution Customer Service and Logistics

Regarding transportation modes, which of the following statements is NOT true?

A major benefit of _____ is that it protects the products and simplifies handling during shipping.

Containerization:

Regarding alternative transporting modes, which of the following statements is TRUE?

Airfreight

What is the best way to ship Spring tulips from Amsterdam, Netherlands, to Rome, Italy?

Why would Coca-Cola want to encourage its customers to store product in their homes?

Inventory refers to

The railroad service which picks up truck trailers at a producer's location, loads them onto rail flatcars, hauls them close to the customer, and then delivers them to the buyer's door is:

Storing:

Using airfreight instead of some other mode of transporting may result in:

Regarding alternative transporting modes, which of the following statements is TRUE?

A train carries truck trailers long distances. The trailers are then offloaded, attached to truck tractors, and the tractor-trailer combinations are driven to their final destination. This practice is known as:

Piggyback service means

Jackie works in transportation for a company that ships expensive, high quality fish all across the United States. The perishable nature of her product, the value of freshness, and the high prices she charges would lead you to recommend which transportation mode?

Air express companies place many small packages into specially designed cylinders that conform to the interior dimensions of a cargo airplane. This practice protects the smaller packages and helps to reduce distribution costs. The air express companies are practicing:

When Sony manufactures and packages DVD players in Japan, stores them in large 8'x8'x20' "boxes," and then ships these boxes to Los Angeles by boat, this is an example of: