SCM 413 FINAL EXAM QUESTIONS WITH VERIFIED ANSWERS GRADED A+
T/F: If your company does not want responsibility for freight damage on the products they ship
they should negotiate FOB Destination rates - Answers True
T/F: As a general rule the greater the density the lower the freight rate. - Answers True
T/F: If you want to find freight rates charged by a transportation company to deliver different
size shipments between two cities you should check the bill of lading. - Answers False
which is typically the most expensive transportation mode: - Answers Air
If you need to find the cost to ship 10,000 pounds from Lansing to Orlando you should look at
the: - Answers Tariff
If you want the consignee to be responsible for goods while they are in-transit you should ship
products: - Answers FOB Origin
Declining transport rates as the quantity shipped increases represents: - Answers Economy of
Scale
Which typeof transportation has the best and worst capability scores? - Answers air is best;
truck is worst
Generally the least costly method of moving product that is not gaseous, liquid, or slurry is: -
Answers Water
If a transportation vehicle has completed a delivery and is returned empty, the situation is called
a: - Answers Deadhead
What is a non-operating transportation intermediary: - Answers Freight forwarder
The transportation mode having the best overall operating characteristics is what? - Answers
truck
When a carrier's transportation vehicle is used for temporary product storage a firm typically
has to pay: - Answers Demurrage
The mode of transportation hauling the most tonnage is: - Answers Truck
T/F: The significant difference between a class rate and a commodity rate is the type of freight
being shipped. - Answers False
The transportation economic principle that deals with economy of distance is: - Answers
Tapering
Jones Company decided it would only deliver to each geographic market it serves once each
week. This strategy is called: - Answers market area consolidation
, T/F: Freight classification is a method to simplify the locations being serviced by a carrier -
Answers False
T/F: The rating reflects the cost of shipment from one location to another - Answers False
The document that lists and details the contents and conditions of a shipment is called: -
Answers Bill of Landing
To facilitate classification of a large variety of different items being shipped on a single invoice
a Traffic Manager may want to consider: - Answers FAK Rates
Which of a product's characteristics directly influences transport cost: - Answers The products
density
The Jones Company learned that several other shippers located in its hometown had customers
located in the same markets it serves. With this information Jones could find it advantage to
investigate the potential of: - Answers Pooled Delivery Consolidation
T/F: A minimum charge represents the lowest cost per hundred weight a carrier offers. -
Answers False
What is not an advantage of a multi-domestic strategy? - Answers Scalable
What is not an objective of the Harmonized Tariff Schedule (HTSUS)? - Answers Sets the fines
for inadmissible products
What is a global strategy that allows firms to focus on key growth markets while minimizing
complexity across a large number of markets? - Answers Multi-domestic
What hidden cost can be avoided by switching the country of production for leather shoes? -
Answers Import tariffs
What are examples of designing a supply chain to enhance energy sustainability? - Answers
Locating a plant in a country with low cost energy, Sourcing produce locally, Integrating delivery
activities with other suppliers serving the same customers
If a product that is to be sold in the U.S. is made in China and shipped by ocean, what cost
category is going to be higher than if the product was made domestically? - Answers QA
inspection and freight
Which region has the least complex logistics challenges? - Answers North America
What global strategy is the best for meeting the requirements of globally based customers? -
Answers Transactional
All other things being equal, domestic sourcing would be suggested for ______. - Answers
products with many variations -- complexity
T/F: If your company does not want responsibility for freight damage on the products they ship
they should negotiate FOB Destination rates - Answers True
T/F: As a general rule the greater the density the lower the freight rate. - Answers True
T/F: If you want to find freight rates charged by a transportation company to deliver different
size shipments between two cities you should check the bill of lading. - Answers False
which is typically the most expensive transportation mode: - Answers Air
If you need to find the cost to ship 10,000 pounds from Lansing to Orlando you should look at
the: - Answers Tariff
If you want the consignee to be responsible for goods while they are in-transit you should ship
products: - Answers FOB Origin
Declining transport rates as the quantity shipped increases represents: - Answers Economy of
Scale
Which typeof transportation has the best and worst capability scores? - Answers air is best;
truck is worst
Generally the least costly method of moving product that is not gaseous, liquid, or slurry is: -
Answers Water
If a transportation vehicle has completed a delivery and is returned empty, the situation is called
a: - Answers Deadhead
What is a non-operating transportation intermediary: - Answers Freight forwarder
The transportation mode having the best overall operating characteristics is what? - Answers
truck
When a carrier's transportation vehicle is used for temporary product storage a firm typically
has to pay: - Answers Demurrage
The mode of transportation hauling the most tonnage is: - Answers Truck
T/F: The significant difference between a class rate and a commodity rate is the type of freight
being shipped. - Answers False
The transportation economic principle that deals with economy of distance is: - Answers
Tapering
Jones Company decided it would only deliver to each geographic market it serves once each
week. This strategy is called: - Answers market area consolidation
, T/F: Freight classification is a method to simplify the locations being serviced by a carrier -
Answers False
T/F: The rating reflects the cost of shipment from one location to another - Answers False
The document that lists and details the contents and conditions of a shipment is called: -
Answers Bill of Landing
To facilitate classification of a large variety of different items being shipped on a single invoice
a Traffic Manager may want to consider: - Answers FAK Rates
Which of a product's characteristics directly influences transport cost: - Answers The products
density
The Jones Company learned that several other shippers located in its hometown had customers
located in the same markets it serves. With this information Jones could find it advantage to
investigate the potential of: - Answers Pooled Delivery Consolidation
T/F: A minimum charge represents the lowest cost per hundred weight a carrier offers. -
Answers False
What is not an advantage of a multi-domestic strategy? - Answers Scalable
What is not an objective of the Harmonized Tariff Schedule (HTSUS)? - Answers Sets the fines
for inadmissible products
What is a global strategy that allows firms to focus on key growth markets while minimizing
complexity across a large number of markets? - Answers Multi-domestic
What hidden cost can be avoided by switching the country of production for leather shoes? -
Answers Import tariffs
What are examples of designing a supply chain to enhance energy sustainability? - Answers
Locating a plant in a country with low cost energy, Sourcing produce locally, Integrating delivery
activities with other suppliers serving the same customers
If a product that is to be sold in the U.S. is made in China and shipped by ocean, what cost
category is going to be higher than if the product was made domestically? - Answers QA
inspection and freight
Which region has the least complex logistics challenges? - Answers North America
What global strategy is the best for meeting the requirements of globally based customers? -
Answers Transactional
All other things being equal, domestic sourcing would be suggested for ______. - Answers
products with many variations -- complexity
