SCM 413 Final Exam Homework Questions With Complete
Solutions
A freight forwarder is an example of a nonoperating
intermediary Correct Answers True
A joint rate is applicable when two or more carriers participate
in a specific transportation movement Correct Answers True
A minimum charge represents the lowest cost per hundred
weight a carrier offers. Correct Answers False
Air transport is characterized by low fixed and high variable cost
Correct Answers True
All of the following are examples of international logistics
documentation except Correct Answers Shipping invoice
All other things being equal, domestic sourcing would be
suggested for ______. Correct Answers Products with many
variations
All other things being equal, domestic sourcing would be
suggested for Correct Answers Products with high value
All other things being equal, low cost country sourcing would be
suggested for Correct Answers Products with low intellectual
property content
Among the following choices which is typically the most
expensive transportation mode: Correct Answers Air
, As a general rule the greater the density the lower the freight
rate. Correct Answers True
Borrowing money to pay for products while they are being
shipped is an example of which type of hidden cost? Correct
Answers Finance charges
Declining transport rates as the quantity shipped increases
represents: Correct Answers Economy of Scale
Fashion goods are at a high risk for which type of hidden cost?
Correct Answers Obsolescence
Firms are globalizing their operations today for all of the
following reasons except Correct Answers Simplify product
variations
Freight classification is a method to simplify the locations being
serviced by a carrier Correct Answers False
Generally the least costly method of moving product that is not
gaseous, liquid, or slurry is: Correct Answers Water
If a company has no international strategy, what should their
delivery plan be? Correct Answers Direct to customer
If a product that is to be sold in the U.S. is made in China and
shipped by ocean, what cost category is going to be higher than
if the product was made domestically? Correct Answers Both
QA inspection and freight
Solutions
A freight forwarder is an example of a nonoperating
intermediary Correct Answers True
A joint rate is applicable when two or more carriers participate
in a specific transportation movement Correct Answers True
A minimum charge represents the lowest cost per hundred
weight a carrier offers. Correct Answers False
Air transport is characterized by low fixed and high variable cost
Correct Answers True
All of the following are examples of international logistics
documentation except Correct Answers Shipping invoice
All other things being equal, domestic sourcing would be
suggested for ______. Correct Answers Products with many
variations
All other things being equal, domestic sourcing would be
suggested for Correct Answers Products with high value
All other things being equal, low cost country sourcing would be
suggested for Correct Answers Products with low intellectual
property content
Among the following choices which is typically the most
expensive transportation mode: Correct Answers Air
, As a general rule the greater the density the lower the freight
rate. Correct Answers True
Borrowing money to pay for products while they are being
shipped is an example of which type of hidden cost? Correct
Answers Finance charges
Declining transport rates as the quantity shipped increases
represents: Correct Answers Economy of Scale
Fashion goods are at a high risk for which type of hidden cost?
Correct Answers Obsolescence
Firms are globalizing their operations today for all of the
following reasons except Correct Answers Simplify product
variations
Freight classification is a method to simplify the locations being
serviced by a carrier Correct Answers False
Generally the least costly method of moving product that is not
gaseous, liquid, or slurry is: Correct Answers Water
If a company has no international strategy, what should their
delivery plan be? Correct Answers Direct to customer
If a product that is to be sold in the U.S. is made in China and
shipped by ocean, what cost category is going to be higher than
if the product was made domestically? Correct Answers Both
QA inspection and freight
