Supply Chain Management, 5e (Chopra/Meindl)
Chapter 14 Transportation in a Supply Chain
14.1 True/False Questions
1) Transportation plays a key role in every supply chain because products are usually produced
and consumed in the same location.
Answer: FALSE
Diff: 1
Topic: 14.1 The Role of Transportation in a Supply Chain
Learning Outcome: Compare common approaches to supply chain design
2) A distributor makes investment decisions regarding the transportation infrastructure and then
makes operating decisions to try to maximize the return from these assets.
Answer: FALSE
Diff: 3
Topic: 14.1 The Role of Transportation in a Supply Chain
AACSB: Analytic Skills
Learning Outcome: Compare common approaches to supply chain design
3) A carrier uses transportation to minimize the total cost (transportation, inventory, information,
and facility) while providing an appropriate level of responsiveness to the customer.
Answer: FALSE
Diff: 3
Topic: 14.1 The Role of Transportation in a Supply Chain
AACSB: Analytic Skills
Learning Outcome: Compare common approaches to supply chain design
4) The vehicle-related cost is incurred whether the vehicle is operating or not and is considered
fixed for short-term operational decisions by the carrier.
Answer: TRUE
Diff: 2
Topic: 14.1 The Role of Transportation in a Supply Chain
AACSB: Analytic Skills
Learning Outcome: Compare common approaches to supply chain design
5) A carrier's decisions are affected by the prices that the market will bear, but not the
responsiveness it seeks to provide its target segment.
Answer: FALSE
Diff: 2
Topic: 14.2 Modes of Transportation and Their Performance Characteristics
AACSB: Analytic Skills
Learning Outcome: Compare common approaches to supply chain design
14-1
, 6) Transportation cost depends on the prices offered by different carriers and the extent to which
the shipper uses inexpensive and slow, or expensive and fast, means of transportation.
Answer: TRUE
Diff: 1
Topic: 14.2 Modes of Transportation and Their Performance Characteristics
AACSB: Analytic Skills
Learning Outcome: Compare common approaches to supply chain design
7) Rail is the dominant mode of freight transportation in the United States and accounts for over
75 percent of the nation's freight bill.
Answer: FALSE
Diff: 2
Topic: 14.4 Design Options for a Transportation Network
Learning Outcome: Compare common approaches to supply chain design
8) A milk run is a route in which a truck either delivers product from a single supplier to multiple
retailers or goes from multiple suppliers to a single retailer.
Answer: TRUE
Diff: 1
Topic: 14.1 The Role of Transportation in a Supply Chain
Learning Outcome: Compare common approaches to supply chain design
9) Milk runs reduce outbound transportation costs by consolidating large shipments.
Answer: FALSE
Diff: 1
Topic: 14.4 Design Options for a Transportation Network
AACSB: Analytic Skills
Learning Outcome: Compare common approaches to supply chain design
10) The mode of transportation that results in the lowest transportation cost will lower total costs
for a supply chain.
Answer: FALSE
Diff: 2
Topic: 14.4 Design Options for a Transportation Network
AACSB: Analytic Skills
Learning Outcome: Compare common approaches to supply chain design
11) Ignoring inventory costs when making transportation decisions can result in choices that
worsen the performance of a supply chain.
Answer: TRUE
Diff: 2
Topic: 14.4 Design Options for a Transportation Network
Learning Outcome: Compare common approaches to supply chain design
14-2
Chapter 14 Transportation in a Supply Chain
14.1 True/False Questions
1) Transportation plays a key role in every supply chain because products are usually produced
and consumed in the same location.
Answer: FALSE
Diff: 1
Topic: 14.1 The Role of Transportation in a Supply Chain
Learning Outcome: Compare common approaches to supply chain design
2) A distributor makes investment decisions regarding the transportation infrastructure and then
makes operating decisions to try to maximize the return from these assets.
Answer: FALSE
Diff: 3
Topic: 14.1 The Role of Transportation in a Supply Chain
AACSB: Analytic Skills
Learning Outcome: Compare common approaches to supply chain design
3) A carrier uses transportation to minimize the total cost (transportation, inventory, information,
and facility) while providing an appropriate level of responsiveness to the customer.
Answer: FALSE
Diff: 3
Topic: 14.1 The Role of Transportation in a Supply Chain
AACSB: Analytic Skills
Learning Outcome: Compare common approaches to supply chain design
4) The vehicle-related cost is incurred whether the vehicle is operating or not and is considered
fixed for short-term operational decisions by the carrier.
Answer: TRUE
Diff: 2
Topic: 14.1 The Role of Transportation in a Supply Chain
AACSB: Analytic Skills
Learning Outcome: Compare common approaches to supply chain design
5) A carrier's decisions are affected by the prices that the market will bear, but not the
responsiveness it seeks to provide its target segment.
Answer: FALSE
Diff: 2
Topic: 14.2 Modes of Transportation and Their Performance Characteristics
AACSB: Analytic Skills
Learning Outcome: Compare common approaches to supply chain design
14-1
, 6) Transportation cost depends on the prices offered by different carriers and the extent to which
the shipper uses inexpensive and slow, or expensive and fast, means of transportation.
Answer: TRUE
Diff: 1
Topic: 14.2 Modes of Transportation and Their Performance Characteristics
AACSB: Analytic Skills
Learning Outcome: Compare common approaches to supply chain design
7) Rail is the dominant mode of freight transportation in the United States and accounts for over
75 percent of the nation's freight bill.
Answer: FALSE
Diff: 2
Topic: 14.4 Design Options for a Transportation Network
Learning Outcome: Compare common approaches to supply chain design
8) A milk run is a route in which a truck either delivers product from a single supplier to multiple
retailers or goes from multiple suppliers to a single retailer.
Answer: TRUE
Diff: 1
Topic: 14.1 The Role of Transportation in a Supply Chain
Learning Outcome: Compare common approaches to supply chain design
9) Milk runs reduce outbound transportation costs by consolidating large shipments.
Answer: FALSE
Diff: 1
Topic: 14.4 Design Options for a Transportation Network
AACSB: Analytic Skills
Learning Outcome: Compare common approaches to supply chain design
10) The mode of transportation that results in the lowest transportation cost will lower total costs
for a supply chain.
Answer: FALSE
Diff: 2
Topic: 14.4 Design Options for a Transportation Network
AACSB: Analytic Skills
Learning Outcome: Compare common approaches to supply chain design
11) Ignoring inventory costs when making transportation decisions can result in choices that
worsen the performance of a supply chain.
Answer: TRUE
Diff: 2
Topic: 14.4 Design Options for a Transportation Network
Learning Outcome: Compare common approaches to supply chain design
14-2
