Exam 14: Transportation in a Supply Chain

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The complexity and scale of transportation makes it an excellent area within the supply chain for the use of

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Real time location tracking of vehicles relies on

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Rail is the dominant mode of freight transportation in the United States and accounts for over 75 percent of the nation's freight bill.

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Milk runs reduce outbound transportation costs by consolidating large shipments.

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Firms can significantly reduce the safety inventory they require by physically aggregating inventories in one location, which will also decrease transportation cost.

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The competent supply chain manager decided to aggregate all inventories and as required, use fast mode of transportation for filling customer orders of his

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Which mode of transportation is the least expensive?

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Temporal aggregation decreases a firm's responsiveness because of shipping delay but also decreases transportation costs because of economies of scale that result from larger shipments.

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The total amount paid to various carriers for transporting products to customers is

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Tailored transportation is the use of different transportation networks and modes based on customer and product characteristics.

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It is best to disaggregate all inventories and use an inexpensive mode of transportation for replenishment when you have a

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Discuss the two key players involved in any transportation in the supply chain.

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Which of these statements about use fees for a highway is best?

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The cost of holding inventory incurred by the shipper's supply chain network is

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The mode of transportation that results in the lowest transportation cost will lower total costs for a supply chain.

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Discuss the importance of designing flexibility into the transportation network.

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Suppose that a highway is governed by a use fee charged to motorists that is based on congestion, operation and maintenance. The total traffic t is used to determine the cost of 5t². What is the marginal cost?

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Suppose that a highway is governed by a use fee charged to motorists that is based on congestion, operation and maintenance. The total traffic t is used to determine the cost of 5t² + 7t. What is the marginal cost?

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A carrier's decisions are affected by the prices that the market will bear, but not the responsiveness it seeks to provide its target segment.

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________ typically move commodities over large distances at lower costs per unit shipped.

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