SCHM 2301 LATEST 2026 EXAMINATION SETS
QUESTIONS AND ANSWERS MARKED A+
✔✔Pipeline - ✔✔accounts for 68% of all crude and petroleum oil movements in the US.
Highest fixed cost and lowest variable cost. Not flexible, limited to liquids and gases.
- unique bc operates 24/7, no emissions, no return containers
✔✔Air - ✔✔ex.) air carriers. newest and least utilized transport mode for freight. Fastest
of all modes, fixed cost is 2nd lowest but variable costs are extremely high. Most
products are air-shipped have high value, high priority, or extreme perishability
✔✔Containerships - ✔✔oldest form of intermodal transport. combination of sea and rail
transport.
✔✔Non operating intermediaries do not own their own equipment - ✔✔ex.) freight
forwarders, shipper associations and agents, brokers
✔✔freight forwarders - ✔✔Consolidate small shipments from many customers into bulk
shipment for transport by a common carrier
✔✔shipper associations and agents - ✔✔groups of shippers who employ an agent to
consolidate purchases and shipments for them
✔✔brokers - ✔✔intermediaries that coordinate transportation arrangements for shipper,
consignees and carriers, operating on a commission basis
✔✔Bill of Lading - ✔✔shows title to the goods, name, and address of the consignor and
consignee. summarizes the goods in transit and their class rates. legal contract
between two parties
✔✔INCOTERMS - ✔✔international commerce terms.
- tells you who pays for what cost/activity in terms of the buyer or seller. standardized.
goal is to facilitate international trade and avoid confusion between buyer and seller.
✔✔Bases for Rates (How to Price) - ✔✔- cost of service
- value of service
- distance
- weight of shipment
✔✔cost of service pricing - ✔✔supply-side pricing. supply is greater than demand, so
prices decrease. cost determines the rate.
✔✔value of service pricing - ✔✔demand-side pricing. when demand is greater than
supply, prices increase to as much as the market will bear.
, ✔✔distance pricing - ✔✔the longer the haul, the higher the rate. however, eventually
suffers from tapering rates which is when rates rise with increasing distances, but at a
decreasing rate (levels off)
✔✔weight of shipment pricing - ✔✔rates vary inversely with weight. heavier shipments
are cheaper.
✔✔Consolidation - ✔✔to reduce transportation costs of LTL shipments, build
consolidation center, but warehousing costs go up.
✔✔Break-bulk - ✔✔a location along a transport route where goods must be transferred
from one carrier to another.
✔✔Cross-docking - ✔✔instead of making multiple LTL shipment, every shipper sends
things to the same cross dock (where things get sorted) and then ship to each location
on a single TL.
✔✔Basic Warehouse Operations - ✔✔-Receiving
-Put Away
-Storage
-Order Picking
-Shipping Preparation
-Shipping
✔✔1. Receiving - ✔✔-schedule carrier
-unload vehicle
-inspect for damage
-compare to P/O
✔✔2. Put-away - ✔✔-identify product
-storage location
-move product
-update records
✔✔3. storage - ✔✔-equipment
-stock location (popularity, unit size, cube)
✔✔4. Order Picking - ✔✔-information
-walk & pick
-batch picking
-AS/R
✔✔5. Shipping Prep - ✔✔-packing
-labeling
QUESTIONS AND ANSWERS MARKED A+
✔✔Pipeline - ✔✔accounts for 68% of all crude and petroleum oil movements in the US.
Highest fixed cost and lowest variable cost. Not flexible, limited to liquids and gases.
- unique bc operates 24/7, no emissions, no return containers
✔✔Air - ✔✔ex.) air carriers. newest and least utilized transport mode for freight. Fastest
of all modes, fixed cost is 2nd lowest but variable costs are extremely high. Most
products are air-shipped have high value, high priority, or extreme perishability
✔✔Containerships - ✔✔oldest form of intermodal transport. combination of sea and rail
transport.
✔✔Non operating intermediaries do not own their own equipment - ✔✔ex.) freight
forwarders, shipper associations and agents, brokers
✔✔freight forwarders - ✔✔Consolidate small shipments from many customers into bulk
shipment for transport by a common carrier
✔✔shipper associations and agents - ✔✔groups of shippers who employ an agent to
consolidate purchases and shipments for them
✔✔brokers - ✔✔intermediaries that coordinate transportation arrangements for shipper,
consignees and carriers, operating on a commission basis
✔✔Bill of Lading - ✔✔shows title to the goods, name, and address of the consignor and
consignee. summarizes the goods in transit and their class rates. legal contract
between two parties
✔✔INCOTERMS - ✔✔international commerce terms.
- tells you who pays for what cost/activity in terms of the buyer or seller. standardized.
goal is to facilitate international trade and avoid confusion between buyer and seller.
✔✔Bases for Rates (How to Price) - ✔✔- cost of service
- value of service
- distance
- weight of shipment
✔✔cost of service pricing - ✔✔supply-side pricing. supply is greater than demand, so
prices decrease. cost determines the rate.
✔✔value of service pricing - ✔✔demand-side pricing. when demand is greater than
supply, prices increase to as much as the market will bear.
, ✔✔distance pricing - ✔✔the longer the haul, the higher the rate. however, eventually
suffers from tapering rates which is when rates rise with increasing distances, but at a
decreasing rate (levels off)
✔✔weight of shipment pricing - ✔✔rates vary inversely with weight. heavier shipments
are cheaper.
✔✔Consolidation - ✔✔to reduce transportation costs of LTL shipments, build
consolidation center, but warehousing costs go up.
✔✔Break-bulk - ✔✔a location along a transport route where goods must be transferred
from one carrier to another.
✔✔Cross-docking - ✔✔instead of making multiple LTL shipment, every shipper sends
things to the same cross dock (where things get sorted) and then ship to each location
on a single TL.
✔✔Basic Warehouse Operations - ✔✔-Receiving
-Put Away
-Storage
-Order Picking
-Shipping Preparation
-Shipping
✔✔1. Receiving - ✔✔-schedule carrier
-unload vehicle
-inspect for damage
-compare to P/O
✔✔2. Put-away - ✔✔-identify product
-storage location
-move product
-update records
✔✔3. storage - ✔✔-equipment
-stock location (popularity, unit size, cube)
✔✔4. Order Picking - ✔✔-information
-walk & pick
-batch picking
-AS/R
✔✔5. Shipping Prep - ✔✔-packing
-labeling
