AVMG 4200 Test 1 | Questions and Answers

AVMG 4200 Test 1 | Questions and Answers Goods will move from areas of surplus to areas of shortage as if by a mysterious "Invisible Hand" as long as three fundamental conditions are met; among these are _____ . the "Value Proposition" is met (change in total value greater than change in total cost) Utility or Value in an economic system described as the "unique perception of value (desire) in the hearts and minds of the individual consumer" is called _____ value. Possession In order for there to be "Free Markets" several preconditions must be met; among the "top three" for a modern economic system are _____ . a predictable and stable means of value exchange The "Cost of Movement" (transportation price and features) varies widely among the different modes of transportation available to a shipper. Which transportation mode is typically the MOST ACCESSIBLE? Truck The explosion in international trade at the end of World War II that continues to this day is a direct result of three main factors; among them are governments have enacted "laissez faire" economic policies for importation of foreign products The explosion in international trade at the end of World War II that continues to this day is a direct result of three main factors; among them are information has become easy, cheap, and ubiquitous The three fundamental forms of utility under capitalist economic theory are: Possession, Form, and Time/Space Utility or Value in an economic system created by the "movement of goods from areas of surplus to areas of shortage" is called _____ value. Time & Place Two primary economic elements driving the rapid increase in global trade over the last 50 years are increased availability of information and reduced transportation costs Goods will move from areas of surplus to areas of shortage as if by a mysterious "Invisible Hand" as long as three fundamental conditions are met; among these are _____ . government does not prohibit or impede movement through regulation or taxes Goods will move from areas of surplus to areas of shortage as if by a mysterious "Invisible Hand" as long as three fundamental conditions are met; among these are _____ . free market conditions are provided The "Cost of Movement" (transportation price and features) varies widely among the different modes of transportation available to a shipper. Which transportation modes are typically the FASTEST? Air and Truck In order for there to be "Free Markets" several preconditions must be met; among the "top three" for a modern economic system are _____ . The "Value Proposition" that must be satisfied for the "invisible hand" to move goods from areas of surplus to areas of shortage holds that the _____ must be _______ the ______ . change in total value, greater than or equal to, change in total cost Why is it so difficult to find a "truly domestic product" in almost any country or region today? reduction in the costs of transporting products over greater distances and easing of trade restrictions "Form Value" is created by the _____ function in an organization. Manufacturing "Possession Value" is created by the _____ function in an organization. Marketing The explosion in international trade at the end of World War II that continues to this day is a direct result of three main factors; among them are transportation over great distances has become easy. cheap, and ubiquitous The "Cost of Movement" (transportation price and features) varies widely among the different modes of transportation available to a shipper. Which transportation modes are typically the MOST RELIABLE? Pipeline and Truck Utility or Value in an economic system created by the "physical transformation of materials from raw to finished product" is called _____ value. Form The "Cost of Movement" (transportation price and features) varies widely among the different modes of transportation available to a shipper. Which transportation modes are typically the LEAST EXPENSIVE? Pipeline and Water In order for there to be "Free Markets" several preconditions must be met; among the "top three" for a modern economic system are _____ . buyer and seller information about surpluses and shortages One of the major challenges of supply chain management is maintaining the visibility of inventory. The "Value Proposition of Transportation" is founded on the principle of moving a product to a different context can increase its value A modern Supply/Value "Chain" is actually a network of _____ connected by _____ . fixed nodes, transportation arcs A critical outcome of the supply chain is to deliver the right product to the right place. Under the modern Supply/Value Chain concept, the _____ pays for all the costs of the entire process. retail consumer The value created by a modern Supply/Value Chain is harvested only at the retail (final customer) step of the process Outsourcing involves obtaining materials, parts, and products from other companies. The Supply Chain Concept developed from the previous Physical Distribution concept. Which of the below is not one of the external forces driving the rate of change and shaping our economic and political landscape? Environmental concerns Transportation service providers (freight or passengers) earn money by creating time and place utility Most retailers are essentially supply chain companies since they buy products produced by others. In a modern Supply/Value Chain, value is created only by marketing, manufacturing, and transportation Logistics, in its simplest form, combines inbound logistics with the outbound logistics of physical distribution. "Time to Market" refers to the lead time between product production and retail sale In a modern Supply/Value Chain, cost is generated by every single activity Transportation adds value in an economic system by generating time and Place utility Supply chain speed is becoming increasingly important because inventory in transit ties up capital The fixed nodes of a Supply/Value Chain provide the _____ value creation and _____ positioning functions. form, inventory The _____ cost concept is a core principle of the modern Supply/Value Chain model. total "Time and Place Utility" refers to the concept or principle of goods in shortage are worth more than goods in surplus Out of the 613 total Rail freight carriers in North America, there are _____ and _____. 7 Class I Linehaul and 606 Shortline By definition, all air freight (with very few exceptions) is considered _____. intermodal The "first filter" the transportation services buyer must apply to a shipment is known as _____. freight eligibility The product offered to the transportation buyer is referred to as the "_____." value proposition ____ is used primarily for the long-distance carriage of low-value goods. Rail Air Freight Forwarders make their money off of the difference between buying capacity at a discount and selling service at a premium