SCMT 3643 Exam 1 Questions and Answers Latest Update 2025-2026
When products are shipped to a free trade zone, custom tariffs have to be paid when... -
Answers The goods enter the market
What two utilities link Marketing and Logistics? - Answers Time and Place
In class, we talked about the cost leverage in logistics. The idea of cost leverage means, for
example, that a company with a Net Profit of 10%, $2.50 of cost savings generates the same
profit as... - Answers a $25 increase in sales the math is (1/.10=10*2.50 or 2.50./10)
In which city is the largest cargo airport in the world located? - Answers Hong Kong, China
Which mode of transportation would a company most likely use if they were shipping fresh
products and high value goods? - Answers Air
The characteristics listed below are an example of which type of carrier?
i. consolidating smaller shipments to save you time and money
ii. detailed knowledge of the rules and regulations that your business must comply with
iii. acting as an intermediary when transporting to a new territory
iv. arranging for and operating several different transport methods for a shipment as required -
Answers Freight Forwarder
Which one of the "Four P's" of Marketing is interface with Logistics? - Answers Place
Which of the following is not a factor for why charter airplanes are hired to transport freight
compared to traditional air-freighters? - Answers These are all the reason they are (P.P) - The
goods do not fit into a regular freighter because there are too heavy and/or too large.
- Goods need to be delivered to a location not serviced by regular
routes.
- Goods need to be delivered to an airport where the runway is substandard, or the cargo
handling facilities are poor.
How are the fixed cost, lead time, flexibility, and unit cost associated with motor (truck) mode of
transportation? - Answers Low fixed, high variable, short lead time, high flexibility
What are logistics clusters? - Answers Geographical concentrations of companies in the
transportation and distribution of goods (from Yossi Sheffi)
What is a free trade zone? - Answers They are a geographic area where goods may be landed,
handled, manufactured or reconfigured, and reexported without the intervention of the customs
, authorities.
In air transportation, a wet lease covers what areas?
i. Fuel
ii. Flight Crew
iii. Insurance
iv. Maintenance - Answers All of the above are covered by the owner/provider; only thing the
customer has to cover are costs like airport fees
Which of the following is the best example of a Land Bridge? - Answers Land bridges are the
use of a strip of land & alternative mode of transportation. These are used as opposed to using
a canal or circumventing a continent.
In the Transportation Mode Selection Chart covered in class, fixed cost has an inverse
relationship with what category? - Answers Variable Unit Cost
With higher production costs in Asia than in previous years, many companies are coming back
to their countries of origins for production purposes. This is called? - Answers Re-shoring
For a product that is very time sensitive, what would be the best mode of transportation? -
Answers Air
What is NOT a characteristic of a logistics hub? - Answers Logistic hub-- logistic clusters that
are:
1. located in favorable geographic locations
2. facilitates transportation
3. warehouse
4. perform custom operations
-it enables interaction among actors that are needed to play a part in the international flow of
products from point of origin to point of consumption
Mexico is becoming more and more of a manufacturing source for the United States. What is
the primary reason for this? - Answers Labor costs in Asia are rising steadily. By relocating
facilities to Mexico, companies can save on transportation costs.
Economies of scale happen when you make more to save on individual unit cost. What mode of
transportation is best for shipping massive amounts of product for a cheap price? - Answers
Water or Rail?
When products are shipped to a free trade zone, custom tariffs have to be paid when... -
Answers The goods enter the market
What two utilities link Marketing and Logistics? - Answers Time and Place
In class, we talked about the cost leverage in logistics. The idea of cost leverage means, for
example, that a company with a Net Profit of 10%, $2.50 of cost savings generates the same
profit as... - Answers a $25 increase in sales the math is (1/.10=10*2.50 or 2.50./10)
In which city is the largest cargo airport in the world located? - Answers Hong Kong, China
Which mode of transportation would a company most likely use if they were shipping fresh
products and high value goods? - Answers Air
The characteristics listed below are an example of which type of carrier?
i. consolidating smaller shipments to save you time and money
ii. detailed knowledge of the rules and regulations that your business must comply with
iii. acting as an intermediary when transporting to a new territory
iv. arranging for and operating several different transport methods for a shipment as required -
Answers Freight Forwarder
Which one of the "Four P's" of Marketing is interface with Logistics? - Answers Place
Which of the following is not a factor for why charter airplanes are hired to transport freight
compared to traditional air-freighters? - Answers These are all the reason they are (P.P) - The
goods do not fit into a regular freighter because there are too heavy and/or too large.
- Goods need to be delivered to a location not serviced by regular
routes.
- Goods need to be delivered to an airport where the runway is substandard, or the cargo
handling facilities are poor.
How are the fixed cost, lead time, flexibility, and unit cost associated with motor (truck) mode of
transportation? - Answers Low fixed, high variable, short lead time, high flexibility
What are logistics clusters? - Answers Geographical concentrations of companies in the
transportation and distribution of goods (from Yossi Sheffi)
What is a free trade zone? - Answers They are a geographic area where goods may be landed,
handled, manufactured or reconfigured, and reexported without the intervention of the customs
, authorities.
In air transportation, a wet lease covers what areas?
i. Fuel
ii. Flight Crew
iii. Insurance
iv. Maintenance - Answers All of the above are covered by the owner/provider; only thing the
customer has to cover are costs like airport fees
Which of the following is the best example of a Land Bridge? - Answers Land bridges are the
use of a strip of land & alternative mode of transportation. These are used as opposed to using
a canal or circumventing a continent.
In the Transportation Mode Selection Chart covered in class, fixed cost has an inverse
relationship with what category? - Answers Variable Unit Cost
With higher production costs in Asia than in previous years, many companies are coming back
to their countries of origins for production purposes. This is called? - Answers Re-shoring
For a product that is very time sensitive, what would be the best mode of transportation? -
Answers Air
What is NOT a characteristic of a logistics hub? - Answers Logistic hub-- logistic clusters that
are:
1. located in favorable geographic locations
2. facilitates transportation
3. warehouse
4. perform custom operations
-it enables interaction among actors that are needed to play a part in the international flow of
products from point of origin to point of consumption
Mexico is becoming more and more of a manufacturing source for the United States. What is
the primary reason for this? - Answers Labor costs in Asia are rising steadily. By relocating
facilities to Mexico, companies can save on transportation costs.
Economies of scale happen when you make more to save on individual unit cost. What mode of
transportation is best for shipping massive amounts of product for a cheap price? - Answers
Water or Rail?
