Question 1

The most significant advantage of a motor carrier is its relatively lower variable cost.

Accepted Answer

A) True 
 B)False

Question 2

Full-service carriers, in addition to picking up and delivering goods, may consolidate shipments, provide simplified billing, ship just-in-time from local storage points, handle complex overseas shipments, coordinate shipments with other carriers or modes, or configure final products for direct shipment to end customers.

Accepted Answer

A) True 
 B)False

Question 3

Moving to a centralized process for procuring professional services does not allow the buying company to leverage its corporate buying power.

Accepted Answer

A) True 
 B)False

Question 4

The total cost structure of _____ is similar to _____ as the equipment, rights-of-way, and physical structure have a high fixed cost and a low variable operating cost.

Accepted Answer

A)  motor carriers….air carriers 
B)  motor carriers….pipelines 
C)  water carriers….rail carriers 
D)  pipelines….rail carriers 
E)  Cannot determine from the above information. 
A)  motor carriers….air carriers 
B)  motor carriers….pipelines 
C)  water carriers….rail carriers 
D)  pipelines….rail carriers 
E)  Cannot determine from the above information.

Question 5

As organizations continue to focus more and more on their internal core competencies and outsource non-core activities, they have come to recognize that many of their necessary transportation and logistics services can, and should be, outsourced to expert companies specializing in transportation and logistics services.

Accepted Answer

A) True 
 B)False

Question 6

_____ refers to a mode's or carrier's ability to provide service over a geographic area.

Accepted Answer

A)  Speed 
B)  Capability 
C)  Total cost 
D)  Accessibility 
E)  Reliability 
A)  Speed 
B)  Capability 
C)  Total cost 
D)  Accessibility 
E)  Reliability

Question 7

Oftentimes, a single mode of transportation may prove inadequate for a specific shipment.

Accepted Answer

A) True 
 B)False

Question 8

A major advantage of a rail carrier is the wide range of items it is capable of carrying. ​

Accepted Answer

A) True 
 B)False

Question 9

Motor carriers are characterized by _____ variable costs, while rail carriers have comparatively _____ fixed costs.

Accepted Answer

A)  higher….high 
B)  lower….high 
C)  higher….low 
D)  lower….low 
E)  There is no difference in variable and fixed costing between motor and rail carriers. 
A)  higher….high 
B)  lower….high 
C)  higher….low 
D)  lower….low 
E)  There is no difference in variable and fixed costing between motor and rail carriers.

Question 10

[A/An] _____ is created by buyers from various businesses to pool their buying power together in order to reduce prices.

Accepted Answer

A)  kanban 
B)  purchasing consortium 
C)  collaborative buyer-supplier relationship 
D)  reverse auction 
E)  zero-based budgeting 
A)  kanban 
B)  purchasing consortium 
C)  collaborative buyer-supplier relationship 
D)  reverse auction 
E)  zero-based budgeting

Question 11

A/An _____ is a manufacturer or distributor that controls and manages its own transportation equipment, whether owned or leased.

Accepted Answer

A)  common carrier 
B)  private carrier 
C)  contract carrier 
D)  intermodal carrier 
E)  exempt carrier 
A)  common carrier 
B)  private carrier 
C)  contract carrier 
D)  intermodal carrier 
E)  exempt carrier

Question 12

Which of the following is not one of the advantages of motor carrier over other modes of transportation?​

Accepted Answer

A)  High flexibility. 
B)  Good reliability. 
C)  Good for JIT delivery. 
D)  Good speed. 
E)  Low cost. 
A)  High flexibility. 
B)  Good reliability. 
C)  Good for JIT delivery. 
D)  Good speed. 
E)  Low cost.

Question 13

Top management should consider internal buy-in from affected employees and other stakeholders before defining the final scope of the project.

Accepted Answer

A) True 
 B)False

Question 14

Reverse logistics flow requires companies to find innovative methods of recovering and recycling products to minimize potential negative impacts on the natural environment.

Accepted Answer

A) True 
 B)False

Question 15

A clear trend is that many carriers now market themselves simply as providers of physical transportation services.

Accepted Answer

A) True 
 B)False

Question 16

The use of a pipeline is usually part of the decision tradeoff between transportation modes.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not one of the advantages of water carrier over other modes of transportation?

Accepted Answer

A)  Good for bulk commodities (inland). 
B)  High flexibility. 
C)  Good for heavy, large items (international). 
D)  Can handle most types of freight. 
E)  Low cost. 
A)  Good for bulk commodities (inland). 
B)  High flexibility. 
C)  Good for heavy, large items (international). 
D)  Can handle most types of freight. 
E)  Low cost.

Question 18

If indirect spend is to be leveraged, supply management must have a clear understanding of exactly what indirect goods and services are being purchased by individual SBUs.

Accepted Answer

A) True 
 B)False

Question 19

A shipper should necessarily negotiate a contract with every carrier it uses, even if it is considered a small or infrequent shipper.

Accepted Answer

A) True 
 B)False

Question 20

For some purchased items, such as bulk raw materials, speed of transportation is the most important factor.

Accepted Answer

A) True 
 B)False

The most significant advantage of a motor carrier is its relatively lower variable cost.

Moving to a centralized process for procuring professional services does not allow the buying company to leverage its corporate buying power.

The total cost structure of _ is similar to _ as the equipment, rights-of-way, and physical structure have a high fixed cost and a low variable operating cost.

_____ refers to a mode's or carrier's ability to provide service over a geographic area.

Oftentimes, a single mode of transportation may prove inadequate for a specific shipment.

A major advantage of a rail carrier is the wide range of items it is capable of carrying.

Motor carriers are characterized by _ variable costs, while rail carriers have comparatively _ fixed costs.

[A/An] _____ is created by buyers from various businesses to pool their buying power together in order to reduce prices.

A/An _____ is a manufacturer or distributor that controls and manages its own transportation equipment, whether owned or leased.

Which of the following is not one of the advantages of motor carrier over other modes of transportation?

Top management should consider internal buy-in from affected employees and other stakeholders before defining the final scope of the project.

Reverse logistics flow requires companies to find innovative methods of recovering and recycling products to minimize potential negative impacts on the natural environment.

A clear trend is that many carriers now market themselves simply as providers of physical transportation services.

The use of a pipeline is usually part of the decision tradeoff between transportation modes.

Which of the following is not one of the advantages of water carrier over other modes of transportation?

If indirect spend is to be leveraged, supply management must have a clear understanding of exactly what indirect goods and services are being purchased by individual SBUs.

A shipper should necessarily negotiate a contract with every carrier it uses, even if it is considered a small or infrequent shipper.

For some purchased items, such as bulk raw materials, speed of transportation is the most important factor.

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policy and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Category Strategy Development

Supplier Evaluation and Selection

Supplier Quality Management

Supplier Management and Development: Creating a World-Class Supply Base

Worldwide Sourcing

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Purchasing Law and Ethics

Lean Supply Chain Management

Supply Chain Information Systems and Electronic Sourcing

Performance Measurement and Evaluation

Purchasing and Supply Strategy Trends

Filters

Exam 17: Purchasing Services

The most significant advantage of a motor carrier is its relatively lower variable cost.

Moving to a centralized process for procuring professional services does not allow the buying company to leverage its corporate buying power.

The total cost structure of _____ is similar to _____ as the equipment, rights-of-way, and physical structure have a high fixed cost and a low variable operating cost.

_____ refers to a mode's or carrier's ability to provide service over a geographic area.

Oftentimes, a single mode of transportation may prove inadequate for a specific shipment.

A major advantage of a rail carrier is the wide range of items it is capable of carrying. ​

Motor carriers are characterized by _____ variable costs, while rail carriers have comparatively _____ fixed costs.

[A/An] _____ is created by buyers from various businesses to pool their buying power together in order to reduce prices.

A/An _____ is a manufacturer or distributor that controls and manages its own transportation equipment, whether owned or leased.

Which of the following is not one of the advantages of motor carrier over other modes of transportation?​

Top management should consider internal buy-in from affected employees and other stakeholders before defining the final scope of the project.

Reverse logistics flow requires companies to find innovative methods of recovering and recycling products to minimize potential negative impacts on the natural environment.

A clear trend is that many carriers now market themselves simply as providers of physical transportation services.

The use of a pipeline is usually part of the decision tradeoff between transportation modes.

Which of the following is not one of the advantages of water carrier over other modes of transportation?

If indirect spend is to be leveraged, supply management must have a clear understanding of exactly what indirect goods and services are being purchased by individual SBUs.

A shipper should necessarily negotiate a contract with every carrier it uses, even if it is considered a small or infrequent shipper.

For some purchased items, such as bulk raw materials, speed of transportation is the most important factor.

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policy and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Category Strategy Development

Supplier Evaluation and Selection

Supplier Quality Management

Supplier Management and Development: Creating a World-Class Supply Base

Worldwide Sourcing

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Purchasing Law and Ethics

Lean Supply Chain Management

Supply Chain Information Systems and Electronic Sourcing

Performance Measurement and Evaluation

Purchasing and Supply Strategy Trends

Filters

The total cost structure of _ is similar to _ as the equipment, rights-of-way, and physical structure have a high fixed cost and a low variable operating cost.

A major advantage of a rail carrier is the wide range of items it is capable of carrying.

Motor carriers are characterized by _ variable costs, while rail carriers have comparatively _ fixed costs.

Which of the following is not one of the advantages of motor carrier over other modes of transportation?