Transportation and logistics exam 1
questions n answers
Why does business operate in a more complex and competitive environment than in the 1960s?
- correct answer ✔✔ 1. enlightened customer
2. globalization
3. technology
4.supply chain integration
5. government regulations and policies
businesses strive to be... - correct answer ✔✔ effective and efficient
What is necessary for a business to be effective and efficient? - correct answer ✔✔ an efficient
transportation system
transportation allows for... - correct answer ✔✔ 1.access to people
2.access to products
3.Access to places
Transportation shapes... - correct answer ✔✔ economy, society, environment, and political
structure of a nation
Demand for Transportation (DERIVED DEMAND) - correct answer ✔✔ Demand to move a
product depends upon the demand to consume it
Transportation Demand - correct answer ✔✔ A request to move between two points
,Units of transportation measurement - correct answer ✔✔ quantity times distance (weight-
distance)
Used in transportation statistics and planning
measuring demand for freight - correct answer ✔✔ ton miles
measuring demand for passengers - correct answer ✔✔ passenger-mile
Demand Elasticity - correct answer ✔✔ sensitivity of customer demand to price change
(%change in quantity)/(%change in price)
Price Inelastic - correct answer ✔✔ not sensitive to price change
price elastic - correct answer ✔✔ sensitive to price change
service elasticity depends on - correct answer ✔✔ transit times and reliability
Landed cost formula - correct answer ✔✔ = product cost + transport cost
Landed Cost Determines... - correct answer ✔✔ extent of market area
value of transport service
Landed Cost: Extent of Market Area - correct answer ✔✔ higher landed cost, shorter distance
covered
,Service Components of Freight Demand - correct answer ✔✔ TRAC
1. transit time
2. reliability
3. accessibility
4. capability
5. security
Reliability - correct answer ✔✔ consistency of transit time
accessibility - correct answer ✔✔ ability to move direct service
Capability - correct answer ✔✔ special service requirements
security - correct answer ✔✔ safety of goods
Location of Economic Activity: Water, Rail, Motor Carriers - correct answer ✔✔ water:
developed major cities, other cities developed along rivers
rail: cities and industrial facilities grew
Motor Carriers: Develop Suburbs
Three Phases of Supply Chain Concept - correct answer ✔✔ three phases
1. 1960s physical distribution concept
2. 1980s business logistics or integrated logistics
, 3. 1990s supply chain management concept
Physical Distribution Concept - correct answer ✔✔ -handling, movement, and storage of goods
-Objective: find lowest distribution cost
Business Logistics Concept - correct answer ✔✔ -Analysis of inbound (sourcing side) to the
outbound physical distribution side
Business Logistics Concept Development facilitated by... - correct answer ✔✔ 1. economic
deregulation of transport in US
2. Rising degree of international or global sourcing
3. Opportunities for cost savings through integrated management and coordination
4. Reduce empty back-haul
Supply Chain Concept - correct answer ✔✔ - Connected networks between original vendor and
the ultimate final consumer.
-Effective and efficient flow of products, materials, services, information and money from the
supplier through intermediaries to the customer
3 Supply Chain Flows - correct answer ✔✔ 1. product
2. information
3. financial/cash
Supply Chain Flow: Product - correct answer ✔✔ forward and reverse logistics
Supply Chain Flow: Information - correct answer ✔✔ demand or sales data, point of sales data
to minimize the bull whip effect
questions n answers
Why does business operate in a more complex and competitive environment than in the 1960s?
- correct answer ✔✔ 1. enlightened customer
2. globalization
3. technology
4.supply chain integration
5. government regulations and policies
businesses strive to be... - correct answer ✔✔ effective and efficient
What is necessary for a business to be effective and efficient? - correct answer ✔✔ an efficient
transportation system
transportation allows for... - correct answer ✔✔ 1.access to people
2.access to products
3.Access to places
Transportation shapes... - correct answer ✔✔ economy, society, environment, and political
structure of a nation
Demand for Transportation (DERIVED DEMAND) - correct answer ✔✔ Demand to move a
product depends upon the demand to consume it
Transportation Demand - correct answer ✔✔ A request to move between two points
,Units of transportation measurement - correct answer ✔✔ quantity times distance (weight-
distance)
Used in transportation statistics and planning
measuring demand for freight - correct answer ✔✔ ton miles
measuring demand for passengers - correct answer ✔✔ passenger-mile
Demand Elasticity - correct answer ✔✔ sensitivity of customer demand to price change
(%change in quantity)/(%change in price)
Price Inelastic - correct answer ✔✔ not sensitive to price change
price elastic - correct answer ✔✔ sensitive to price change
service elasticity depends on - correct answer ✔✔ transit times and reliability
Landed cost formula - correct answer ✔✔ = product cost + transport cost
Landed Cost Determines... - correct answer ✔✔ extent of market area
value of transport service
Landed Cost: Extent of Market Area - correct answer ✔✔ higher landed cost, shorter distance
covered
,Service Components of Freight Demand - correct answer ✔✔ TRAC
1. transit time
2. reliability
3. accessibility
4. capability
5. security
Reliability - correct answer ✔✔ consistency of transit time
accessibility - correct answer ✔✔ ability to move direct service
Capability - correct answer ✔✔ special service requirements
security - correct answer ✔✔ safety of goods
Location of Economic Activity: Water, Rail, Motor Carriers - correct answer ✔✔ water:
developed major cities, other cities developed along rivers
rail: cities and industrial facilities grew
Motor Carriers: Develop Suburbs
Three Phases of Supply Chain Concept - correct answer ✔✔ three phases
1. 1960s physical distribution concept
2. 1980s business logistics or integrated logistics
, 3. 1990s supply chain management concept
Physical Distribution Concept - correct answer ✔✔ -handling, movement, and storage of goods
-Objective: find lowest distribution cost
Business Logistics Concept - correct answer ✔✔ -Analysis of inbound (sourcing side) to the
outbound physical distribution side
Business Logistics Concept Development facilitated by... - correct answer ✔✔ 1. economic
deregulation of transport in US
2. Rising degree of international or global sourcing
3. Opportunities for cost savings through integrated management and coordination
4. Reduce empty back-haul
Supply Chain Concept - correct answer ✔✔ - Connected networks between original vendor and
the ultimate final consumer.
-Effective and efficient flow of products, materials, services, information and money from the
supplier through intermediaries to the customer
3 Supply Chain Flows - correct answer ✔✔ 1. product
2. information
3. financial/cash
Supply Chain Flow: Product - correct answer ✔✔ forward and reverse logistics
Supply Chain Flow: Information - correct answer ✔✔ demand or sales data, point of sales data
to minimize the bull whip effect
