LSCM 4560 EXAM 1 REVIEW QUESTIONS WITH
VERIFIED ANSWERS
Transportation accounts for what percentage of a typical US household expenditures? -
Answers - 15 to 20 percent
Modal split is a useful analytical tool for analyzing transportation. Which of the following
best demonstrates the modal split concept? - Answers - The split, or percentage of total
freight volume moved by each mode of transportation.
The latest annual CSCMP State of Logistics reports indicate that US businesses have
logistics expenditures: - Answers - of approximately $1.4 trillion
The components and size of the US transportation system mirror the modes used in
transporting freight and people. Based on the size (in miles) of infrastructure, we would
expect most freight to move by which mode: - Answers - Motor
In 2016, the Department of Transportation has a budget of approximately: - Answers -
$94.7 billion
Diesel prices are expected to steadily rise during the upcoming decade. Logistics and
supply chain professionals will probably respond by: - Answers - Restructuring their
supply chains to dampen the effect of fuel prices
Transportation provides quantity utility by: - Answers - Ensuring the goods arrive without
damage
Since 1980, logistics expenditures as a percent of US GPD have: - Answers - Steadily
declined with expenditures recently fluctuating due to fuel prices and the economy
Government interest in transportation stems from: - Answers - All of the above
(Lack of sufficient private funds to support infrastructure requirements)
(Transportation as a major expense element in the government budget)
(Ability to exert military power to support national objectives)
Transportation as a logistics process performs two major functions which include: -
Answers - Movement and storage
Ocean-going containerships have become a lucrative target for pirates because: -
Answers - Containerships have a small number of crew members, carry large volumes
of expensive cargo, and must often travel through narrow straits
, Lardner's Law suggests: - Answers - The relevant market area increases by four times
when transportation costs are havled
Passenger transportation has experienced several significant trends during the past four
decades. The volume of passenger miles traveled since 1970: - Answers - Quadrupled
in growth since 1970
The term geographic specialization indicates: - Answers - Countries or regions will
specialize in the production of goods where they hold a comparative advantage
The concept of comparative advantage suggests: - Answers - Some regions hold an
advantage, often a natural, in the production of some goods or services over other
areas or regions
Economists refer to the utility created by different industries. Transportation creates
quantity utility by: - Answers - Delivering the quantity requested without damage
The relationship between the development of the US and transportation can be best
described by which of the following statements? - Answers - Transportation plays a
small role in the economy nd historical development evidenced by accounting for ten
percent or less of US GDP
Which mode of domestic transportation moves the most tonnage in the US? - Answers -
Motor
The demand for freight transportation demand is frequently referred to as derived
demand. This reference stems from: - Answers - The demand for a product at a distant
location resulting in the demand for movement of the product
You have been asked to assist with identifying a location for a distribution center to
support several retail outlets in New York City and the surrounding metropolitan area.
The appropriate facility location model for this problem is: - Answers - Median
Logistics involves many different forms of cost trade-offs. The facility location decision
also involves a cost trade-off. The most significant cost considered in determining where
to locate a facility is: - Answers - Transportation
A European manufacturer has decided to move a manufacturing plant to the US to take
advantage of natural gas prices. The manufacturer has customer located throughout the
US and North America. Based on this scenario, you would recommend which of the
following location models: - Answers - Center of Gravity model
The Fetter and Losch model attempts to determine the extent of the market between
two suppliers. The Fetter and Losch model determines the extent of the market using: -
Answers - The landed cost for each supplier
VERIFIED ANSWERS
Transportation accounts for what percentage of a typical US household expenditures? -
Answers - 15 to 20 percent
Modal split is a useful analytical tool for analyzing transportation. Which of the following
best demonstrates the modal split concept? - Answers - The split, or percentage of total
freight volume moved by each mode of transportation.
The latest annual CSCMP State of Logistics reports indicate that US businesses have
logistics expenditures: - Answers - of approximately $1.4 trillion
The components and size of the US transportation system mirror the modes used in
transporting freight and people. Based on the size (in miles) of infrastructure, we would
expect most freight to move by which mode: - Answers - Motor
In 2016, the Department of Transportation has a budget of approximately: - Answers -
$94.7 billion
Diesel prices are expected to steadily rise during the upcoming decade. Logistics and
supply chain professionals will probably respond by: - Answers - Restructuring their
supply chains to dampen the effect of fuel prices
Transportation provides quantity utility by: - Answers - Ensuring the goods arrive without
damage
Since 1980, logistics expenditures as a percent of US GPD have: - Answers - Steadily
declined with expenditures recently fluctuating due to fuel prices and the economy
Government interest in transportation stems from: - Answers - All of the above
(Lack of sufficient private funds to support infrastructure requirements)
(Transportation as a major expense element in the government budget)
(Ability to exert military power to support national objectives)
Transportation as a logistics process performs two major functions which include: -
Answers - Movement and storage
Ocean-going containerships have become a lucrative target for pirates because: -
Answers - Containerships have a small number of crew members, carry large volumes
of expensive cargo, and must often travel through narrow straits
, Lardner's Law suggests: - Answers - The relevant market area increases by four times
when transportation costs are havled
Passenger transportation has experienced several significant trends during the past four
decades. The volume of passenger miles traveled since 1970: - Answers - Quadrupled
in growth since 1970
The term geographic specialization indicates: - Answers - Countries or regions will
specialize in the production of goods where they hold a comparative advantage
The concept of comparative advantage suggests: - Answers - Some regions hold an
advantage, often a natural, in the production of some goods or services over other
areas or regions
Economists refer to the utility created by different industries. Transportation creates
quantity utility by: - Answers - Delivering the quantity requested without damage
The relationship between the development of the US and transportation can be best
described by which of the following statements? - Answers - Transportation plays a
small role in the economy nd historical development evidenced by accounting for ten
percent or less of US GDP
Which mode of domestic transportation moves the most tonnage in the US? - Answers -
Motor
The demand for freight transportation demand is frequently referred to as derived
demand. This reference stems from: - Answers - The demand for a product at a distant
location resulting in the demand for movement of the product
You have been asked to assist with identifying a location for a distribution center to
support several retail outlets in New York City and the surrounding metropolitan area.
The appropriate facility location model for this problem is: - Answers - Median
Logistics involves many different forms of cost trade-offs. The facility location decision
also involves a cost trade-off. The most significant cost considered in determining where
to locate a facility is: - Answers - Transportation
A European manufacturer has decided to move a manufacturing plant to the US to take
advantage of natural gas prices. The manufacturer has customer located throughout the
US and North America. Based on this scenario, you would recommend which of the
following location models: - Answers - Center of Gravity model
The Fetter and Losch model attempts to determine the extent of the market between
two suppliers. The Fetter and Losch model determines the extent of the market using: -
Answers - The landed cost for each supplier
