SCM 413 FINAL EXAM STUDY GUIDE 2026
availability - Answers - ability of a mode to service any given pair of locations
dependability - Answers - the potential variance from expected delivery schedule
capability - Answers - the ability to handle any load size or configuration
frequency - Answers - the quantity of scheduled movements a mode can handle
rail - Answers - high fixed costs
low variable cost
bulk food, mining, heavy manufacturing
motor - Answers - low fixed costs
medium variable costs
consumer goods, medium/light manufacturing
water - Answers - medium fixed costs
low variable costs
bulk food, mining, chemicals
air - Answers - low fixed costs
high variable costs
high value goods, rush shipments
pipeline - Answers - high fixed costs
low variable costs
petroleum, chemical, mineral slurry
intermodal transportation - Answers - using more than one mode of transportation
economic drivers of rates: distance - Answers - cost curve starts above zero because
of fixed costs associated with pickup and delivery regardless of distance
directly contributes to variable cost expenses (labor, fuel, maintenance)
economic drivers of rates: weight - Answers - cost per pound decreases as weight
increases until the carrier vehicle is full
small loads should be consolidated into larger loads to maximize scale economies
economic drivers of rates: density - Answers - higher density products allow fixed
transport costs to be spread over more weight
, weight and volume are important since transportation cost for any movement is usually
quoted in $$$ per unit of weight
volume is important because vehicles are typically constrained more by cubic capacity
than by weight loaded
economic drivers of rates: stowability - Answers - how product dimensions fit into
transportation equipment
odd package shapes and sizes waste cubic capacity
economic drivers of rates: special equipment handling - Answers - special equipment
may be needed to load and unload trucks, railcars, or ships
the way products are grouped together in boxes or pallets will also impact handling cost
economic drivers of rates: liability - Answers - product characteristics that can result in
damage
carriers must pay for liability insurance or accept financial responsibility
economic drivers of rates: market - Answers - lane volume and balance influence
transportation cost
a transport lane refers to movements between origin and destination points
lane volumes - Answers - economies of scale
balance - Answers - movement both ways between a given market/lane
back haul - Answers - opportunity to avoid empty miles
dead head - Answers - empty miles to relocate equipment
materials handling and packaging - Answers - basic functions that collectively support
the handling of, identification, and protection of product
justified inventory storage - Answers - demand/supply lead time uncertainity
manufacturing economies: production smoothing
transportation economies: volume discounts
customer service support
warehousing service benefits - Answers - operational strategy to add value within the
supply chain process
economic benefits - Answers - operational strategy to save money by using a storage
point
stocking strategies - Answers - spot stock near customer (usually seasonal)
full-line stocking (inventory in anticipation of orders)
stocking to support production facility
availability - Answers - ability of a mode to service any given pair of locations
dependability - Answers - the potential variance from expected delivery schedule
capability - Answers - the ability to handle any load size or configuration
frequency - Answers - the quantity of scheduled movements a mode can handle
rail - Answers - high fixed costs
low variable cost
bulk food, mining, heavy manufacturing
motor - Answers - low fixed costs
medium variable costs
consumer goods, medium/light manufacturing
water - Answers - medium fixed costs
low variable costs
bulk food, mining, chemicals
air - Answers - low fixed costs
high variable costs
high value goods, rush shipments
pipeline - Answers - high fixed costs
low variable costs
petroleum, chemical, mineral slurry
intermodal transportation - Answers - using more than one mode of transportation
economic drivers of rates: distance - Answers - cost curve starts above zero because
of fixed costs associated with pickup and delivery regardless of distance
directly contributes to variable cost expenses (labor, fuel, maintenance)
economic drivers of rates: weight - Answers - cost per pound decreases as weight
increases until the carrier vehicle is full
small loads should be consolidated into larger loads to maximize scale economies
economic drivers of rates: density - Answers - higher density products allow fixed
transport costs to be spread over more weight
, weight and volume are important since transportation cost for any movement is usually
quoted in $$$ per unit of weight
volume is important because vehicles are typically constrained more by cubic capacity
than by weight loaded
economic drivers of rates: stowability - Answers - how product dimensions fit into
transportation equipment
odd package shapes and sizes waste cubic capacity
economic drivers of rates: special equipment handling - Answers - special equipment
may be needed to load and unload trucks, railcars, or ships
the way products are grouped together in boxes or pallets will also impact handling cost
economic drivers of rates: liability - Answers - product characteristics that can result in
damage
carriers must pay for liability insurance or accept financial responsibility
economic drivers of rates: market - Answers - lane volume and balance influence
transportation cost
a transport lane refers to movements between origin and destination points
lane volumes - Answers - economies of scale
balance - Answers - movement both ways between a given market/lane
back haul - Answers - opportunity to avoid empty miles
dead head - Answers - empty miles to relocate equipment
materials handling and packaging - Answers - basic functions that collectively support
the handling of, identification, and protection of product
justified inventory storage - Answers - demand/supply lead time uncertainity
manufacturing economies: production smoothing
transportation economies: volume discounts
customer service support
warehousing service benefits - Answers - operational strategy to add value within the
supply chain process
economic benefits - Answers - operational strategy to save money by using a storage
point
stocking strategies - Answers - spot stock near customer (usually seasonal)
full-line stocking (inventory in anticipation of orders)
stocking to support production facility
