SCMN 3710 FINAL EXAM QUESTIONS
AND ANSWERS
While most transportation industries have been economically deregulated to a
significant degree, the _________ sector(s) are still subject to strict rate/tariff oversight
and control. - Answer-rail and water
The emphasis in the federal regulation of transportation took a major shift toward -
Answer-economic deregulation in the late 1970s
Which of the following modes of transportation is considered the most "capable"? -
Answer-Rail
Which management area in an organization does not normally have transportation
responsibility? - Answer-manufacturing
In the Item Procurement Importance Matrix, what is described as high risk, high value? -
Answer-criticals
What can we use to illustrate a fixed order quantity model, under conditions of certainty,
to describe the relationship between inventory units and time? - Answer-Sawtooth
model
The purpose of "Storage Equipment" is to - Answer-hold materials economically over
time
One important interaction that must be considered is the tradeoff between distribution
and ________ - Answer-transportation.
Batching economies or cycle stocks usually arise from three sources. Which of these is
not a source? - Answer-demand
The "Tapering Rate Principle" holds that as distance increases, total cost for shipping
increases but - Answer-cost per unit distance travelled decreases
The Ocean Shipping Reform Act (OSRA) of 1984 - Answer-permitted greater flexibility
on tariffs and contracts for ocean carriers and conferences
, The Railroad Revitalization and Regulatory Reform Act of 1976 - Answer-initiated the
"deregulation era" by allowing rail carriers more freedom in setting rates and prices
In the Assess Supply Market step, the firm - Answer-identifies all possible suppliers that
might be able to satisfy the user's needs.
In the Execute Sourcing Strategy step, the most important thing is to - Answer-choose a
supplier or suppliers, depending on the objectives of the sourcing decision.
Transportation efficiency promotes __________ in the supply chain. - Answer-
competition
What vendor selection criteria are described by production capability, labor relations,
and operating controls? - Answer-capability
The "Environmental" principle of material handling (Material Handling Institute, "Ten
Principles of Material Handling," 2011) states that managers should attempt to -
Answer-minimize environmental impact and energy use
The "Work" principle of material handling (Material Handling Institute, "Ten Principles of
Material Handling," 2011) states that managers should attempt to - Answer-minimize the
amount of handling without sacrificing productivity or service
A downside of direct shipping is - Answer-can create higher transportation charges.
Seasonal stocks are not influenced by - Answer-EOQ
The fixed order interval EOQ model is best used for SKUs with - Answer-stable demand
Federal regulatory focus has shifted over the years; initially concerned more with
controlling _______ but in the last three decades concentrating more on
_________________ - Answer-economic issues; safety, security and environmental
issues
Freight density ("dimweight") is used in ratemaking because - Answer-capacity
constraints on vehicles include both weight and volume
Shipment weight used for ratemaking is typically expressed in - Answer-Hundredweight
(cwt)
Economic deregulation sparked competition among carriers in several areas. Which of
these is not an area of competition? - Answer-accessibility
In the Item Procurement Importance Matrix, what item is described as low risk, low
value? - Answer-generics
AND ANSWERS
While most transportation industries have been economically deregulated to a
significant degree, the _________ sector(s) are still subject to strict rate/tariff oversight
and control. - Answer-rail and water
The emphasis in the federal regulation of transportation took a major shift toward -
Answer-economic deregulation in the late 1970s
Which of the following modes of transportation is considered the most "capable"? -
Answer-Rail
Which management area in an organization does not normally have transportation
responsibility? - Answer-manufacturing
In the Item Procurement Importance Matrix, what is described as high risk, high value? -
Answer-criticals
What can we use to illustrate a fixed order quantity model, under conditions of certainty,
to describe the relationship between inventory units and time? - Answer-Sawtooth
model
The purpose of "Storage Equipment" is to - Answer-hold materials economically over
time
One important interaction that must be considered is the tradeoff between distribution
and ________ - Answer-transportation.
Batching economies or cycle stocks usually arise from three sources. Which of these is
not a source? - Answer-demand
The "Tapering Rate Principle" holds that as distance increases, total cost for shipping
increases but - Answer-cost per unit distance travelled decreases
The Ocean Shipping Reform Act (OSRA) of 1984 - Answer-permitted greater flexibility
on tariffs and contracts for ocean carriers and conferences
, The Railroad Revitalization and Regulatory Reform Act of 1976 - Answer-initiated the
"deregulation era" by allowing rail carriers more freedom in setting rates and prices
In the Assess Supply Market step, the firm - Answer-identifies all possible suppliers that
might be able to satisfy the user's needs.
In the Execute Sourcing Strategy step, the most important thing is to - Answer-choose a
supplier or suppliers, depending on the objectives of the sourcing decision.
Transportation efficiency promotes __________ in the supply chain. - Answer-
competition
What vendor selection criteria are described by production capability, labor relations,
and operating controls? - Answer-capability
The "Environmental" principle of material handling (Material Handling Institute, "Ten
Principles of Material Handling," 2011) states that managers should attempt to -
Answer-minimize environmental impact and energy use
The "Work" principle of material handling (Material Handling Institute, "Ten Principles of
Material Handling," 2011) states that managers should attempt to - Answer-minimize the
amount of handling without sacrificing productivity or service
A downside of direct shipping is - Answer-can create higher transportation charges.
Seasonal stocks are not influenced by - Answer-EOQ
The fixed order interval EOQ model is best used for SKUs with - Answer-stable demand
Federal regulatory focus has shifted over the years; initially concerned more with
controlling _______ but in the last three decades concentrating more on
_________________ - Answer-economic issues; safety, security and environmental
issues
Freight density ("dimweight") is used in ratemaking because - Answer-capacity
constraints on vehicles include both weight and volume
Shipment weight used for ratemaking is typically expressed in - Answer-Hundredweight
(cwt)
Economic deregulation sparked competition among carriers in several areas. Which of
these is not an area of competition? - Answer-accessibility
In the Item Procurement Importance Matrix, what item is described as low risk, low
value? - Answer-generics
