Question 1

Discuss the importance of designing flexibility into the transportation network.

Accepted Answer

Flexibility needs to be designed into th

Question 2

________ carriers offer a very fast and fairly expensive mode of transportation for cargo.

Accepted Answer

A) Air 
B) Truck 
C) Rail 
D) Water 
A) Air 
B) Truck 
C) Rail 
D) Water

Question 3

Quasi-market prices for transportation infrastructure result in higher prices at peak locations and times and lower prices otherwise.

Accepted Answer

A) True 
 B)False

Question 4

During a heated meeting at SoxyBack Headquarters,Al suggests that the reorder interval be changed from 5 weeks to 2.5 weeks,Bob suggests the ten locations be consolidated to five locations,Charles demands that the customer service level be set at 0.925 instead of 0.975,and David declares their holding cost should be 25% rather than 30%.If these four statements are made regarding the current system as described in Scenario 14.2,which option has the lowest annual inventory cost?

Accepted Answer

A) Al 
B) Bob 
C) Charles 
D) David 
A) Al 
B) Bob 
C) Charles 
D) David

Question 5

Scenario 14.1 - Vidalia Onions
When Vidalia onions are ready,the entire 13 county (plus parts of seven other counties)area in Georgia where they are grown is devoted to the harvest,packaging and shipping of this delicacy.The Onion Shack currently purchases 120,000 bags of onions each year at a price of $100 per bag (a bag is ten pounds).Onion Shack has historically purchased in lots of 3000 bags.Transit time and capacity vary as indicated in the table.The safety inventory that Onion Shack requires is 30% of lead time demand and the holding cost for a bag is 15% of cost.
 $$\begin{array} { | l | c | c | c | c | } 
\hline \text { Carrier } & \begin{array} { c } 
\text { Quantity } \
\text { Shipped (cwt) }
\end{array} & \begin{array} { c } 
\text { Quantity shipped } \
\text { (bags) }
\end{array} & \begin{array} { c } 
\text { Shipping cost } \
\text { (\$/cwt) }
\end{array} & \begin{array} { c } 
\text { Transit time } \
\text { (days) }
\end{array} \
\hline \text { Mashburn Rail } & 200 + & 2000 + & \$ 2.10 & 5 \
\hline \text { Sylvia Express } & 100 + & 1000 + & \$ 2.35 & 3 \
\hline \text { Anita Enterprises } & 250 + & 2500 + & \$ 1.35 & 3 \
\hline \text { Smith Trucking } & 250 + & 2500 + & \$ 1.00 & 3 \
\hline
\end{array}$$
-Use Scenario 14.1 to determine the least expensive transportation option if the Onion Shack continues to purchase 120,000 bags of Vidalia onions each year.

Accepted Answer

A) Mashburn Rail 
B) Sylvia Express 
C) Anita Enterprises 
D) Smith Trucking 
A) Mashburn Rail 
B) Sylvia Express 
C) Anita Enterprises 
D) Smith Trucking

Question 6

The cost of various facilities in the shipper's supply chain network is

Accepted Answer

A) transportation cost. 
B) inventory cost. 
C) facility cost. 
D) processing cost. 
A) transportation cost. 
B) inventory cost. 
C) facility cost. 
D) processing cost.

Question 7

The combination of a high density of customers and long logistical distance is best served by contracting with a package carrier.

Accepted Answer

A) True 
 B)False

Question 8

Managers should ensure that a firm's transportation strategy

Accepted Answer

A) involves cost minimization. 
B) involves profit maximization. 
C) supports its competitive strategy. 
D) is separate from competitive strategy. 
A) involves cost minimization. 
B) involves profit maximization. 
C) supports its competitive strategy. 
D) is separate from competitive strategy.

Question 9

Scenario 14.2
SoxyBack,a manufacturer of fancy men's socks worn by fashionable gentlemen everywhere,is located in Oshkosh,Wisconsin.The socks are sold directly to fashion-conscious men all over North America.SoxyBack currently divides the United States into ten territories,each with its own sales force.All product inventories are maintained locally in each territory and replenished from Oshkosh every five weeks using UPS.The average replenishment lead time using UPS is one week.UPS charges at a rate of $0.75 + 0.33x where x is the quantity shipped in pounds.The products sold fall into two categories-Dandy and Popinjay.Dandy products weigh 0.2 pounds and cost $350 each.Popinjay products weigh 0.10 pounds and cost $35 each.
Weekly demand for Dandy products in each territory is normally distributed,with a mean of mH = 3 and a standard deviation of sH = 6.Weekly demand for Popinjay products in each territory is normally distributed,with a mean of mL = 25 and a standard deviation of sL = 6.
SoxyBack maintains sufficient safety inventories in each territory to provide a CSL of 0.975 for each product.Annual holding cost at SoxyBack is 30 percent.In addition to the current approach,the management team at SoxyBack is considering two other options:
Option A: Keep the current structure but replenish inventory once a week rather than once every five weeks.
Option B: Eliminate inventories in the territories,aggregate all inventories in a finished goods warehouse at Oshkosh,and replenish the warehouse once a week.
If inventories are aggregated at Oshkosh,orders will be shipped using FedEx,which charges $7.25 + 0.77x per shipment,where x is the quantity shipped in pounds.The factory requires a one-week lead time to replenish finished-goods inventories at the Oshkosh warehouse.An average customer order is for 1 unit of Dandy and 10 units of Popinjay.
-Use Scenario 14.2 to determine the total annual cost of Option A for SoxyBack's distribution system.

Accepted Answer

A) $90,459 
B) $75,994 
C) $47,335 
D) $42,598 
A) $90,459 
B) $75,994 
C) $47,335 
D) $42,598

Question 10

Scenario 14.2
SoxyBack,a manufacturer of fancy men's socks worn by fashionable gentlemen everywhere,is located in Oshkosh,Wisconsin.The socks are sold directly to fashion-conscious men all over North America.SoxyBack currently divides the United States into ten territories,each with its own sales force.All product inventories are maintained locally in each territory and replenished from Oshkosh every five weeks using UPS.The average replenishment lead time using UPS is one week.UPS charges at a rate of $0.75 + 0.33x where x is the quantity shipped in pounds.The products sold fall into two categories-Dandy and Popinjay.Dandy products weigh 0.2 pounds and cost $350 each.Popinjay products weigh 0.10 pounds and cost $35 each.
Weekly demand for Dandy products in each territory is normally distributed,with a mean of mH = 3 and a standard deviation of sH = 6.Weekly demand for Popinjay products in each territory is normally distributed,with a mean of mL = 25 and a standard deviation of sL = 6.
SoxyBack maintains sufficient safety inventories in each territory to provide a CSL of 0.975 for each product.Annual holding cost at SoxyBack is 30 percent.In addition to the current approach,the management team at SoxyBack is considering two other options:
Option A: Keep the current structure but replenish inventory once a week rather than once every five weeks.
Option B: Eliminate inventories in the territories,aggregate all inventories in a finished goods warehouse at Oshkosh,and replenish the warehouse once a week.
If inventories are aggregated at Oshkosh,orders will be shipped using FedEx,which charges $7.25 + 0.77x per shipment,where x is the quantity shipped in pounds.The factory requires a one-week lead time to replenish finished-goods inventories at the Oshkosh warehouse.An average customer order is for 1 unit of Dandy and 10 units of Popinjay.
-Use Scenario 14.2 to determine the total annual cost of SoxyBack's current system if a series of promotions increases the standard deviation of demand for both the Dandy and Popinjay lines to 10.Assume that the mean weekly demand for both product lines remains the same.

Accepted Answer

A) $116,672 
B) $140,869 
C) $128,771 
D) $152,967 
A) $116,672 
B) $140,869 
C) $128,771 
D) $152,967

Question 11

During a heated meeting at SoxyBack Headquarters,Al suggests that the reorder interval be changed from 5 weeks to 2.5 weeks,Bob suggests the ten locations be consolidated to five locations,Charles demands that the customer service level be set at 0.925 instead of 0.975,and David declares their holding cost should be 25% rather than 30%.Their boss,Indecisive Ivan decides to make all of these changes to the current system as described in Scenario 14.2.How much money will be saved in annual inventory costs from the current system?

Accepted Answer

A) $45,082 
B) $52,404 
C) $61,970 
D) $64,043 
A) $45,082 
B) $52,404 
C) $61,970 
D) $64,043

Question 12

A milk run is a route in which a truck either delivers product from a single supplier to multiple retailers or goes from multiple suppliers to a single retailer.

Accepted Answer

A) True 
 B)False

Question 13

In almost all countries,roads,seaports,airports,rail and canals have this in common.

Accepted Answer

A) They were built and/or managed by the government. 
B) They are located near the water. 
C) They are the source of most of the tax revenue for municipalities. 
D) They are staffed by foreign nationals. 
A) They were built and/or managed by the government. 
B) They are located near the water. 
C) They are the source of most of the tax revenue for municipalities. 
D) They are staffed by foreign nationals.

Question 14

Scenario 14.1 - Vidalia Onions
When Vidalia onions are ready,the entire 13 county (plus parts of seven other counties)area in Georgia where they are grown is devoted to the harvest,packaging and shipping of this delicacy.The Onion Shack currently purchases 120,000 bags of onions each year at a price of $100 per bag (a bag is ten pounds).Onion Shack has historically purchased in lots of 3000 bags.Transit time and capacity vary as indicated in the table.The safety inventory that Onion Shack requires is 30% of lead time demand and the holding cost for a bag is 15% of cost.
 $$\begin{array} { | l | c | c | c | c | } 
\hline \text { Carrier } & \begin{array} { c } 
\text { Quantity } \
\text { Shipped (cwt) }
\end{array} & \begin{array} { c } 
\text { Quantity shipped } \
\text { (bags) }
\end{array} & \begin{array} { c } 
\text { Shipping cost } \
\text { (\$/cwt) }
\end{array} & \begin{array} { c } 
\text { Transit time } \
\text { (days) }
\end{array} \
\hline \text { Mashburn Rail } & 200 + & 2000 + & \$ 2.10 & 5 \
\hline \text { Sylvia Express } & 100 + & 1000 + & \$ 2.35 & 3 \
\hline \text { Anita Enterprises } & 250 + & 2500 + & \$ 1.35 & 3 \
\hline \text { Smith Trucking } & 250 + & 2500 + & \$ 1.00 & 3 \
\hline
\end{array}$$
-Use Scenario 14.1 to determine the in-transit inventory cost of the Anita Enterprises option if the Onion Shack purchases 240,000 bags of Vidalia onions each year.

Accepted Answer

A) $1936.60 
B) $2004.60 
C) $1972.60 
D) $1864.60 
A) $1936.60 
B) $2004.60 
C) $1972.60 
D) $1864.60

Question 15

The ________ is the party that requires the movement of the product between two points in the supply chain.

Accepted Answer

A) carrier 
B) producer 
C) shipper 
D) consumer 
A) carrier 
B) producer 
C) shipper 
D) consumer

Discuss the importance of designing flexibility into the transportation network.

________ carriers offer a very fast and fairly expensive mode of transportation for cargo.

Quasi-market prices for transportation infrastructure result in higher prices at peak locations and times and lower prices otherwise.

The cost of various facilities in the shipper's supply chain network is

The combination of a high density of customers and long logistical distance is best served by contracting with a package carrier.

Managers should ensure that a firm's transportation strategy

A milk run is a route in which a truck either delivers product from a single supplier to multiple retailers or goes from multiple suppliers to a single retailer.

In almost all countries,roads,seaports,airports,rail and canals have this in common.

The ________ is the party that requires the movement of the product between two points in the supply chain.

Understanding the Supply Chain

Achieving Strategic Fit in a Supply Chain

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to E-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Demand Forecasting in a Supply Chain

Aggregate Planning in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand

Coordination in a Supply Chain

Managing Economies of Scale in a Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Linking Product Availability to Profits

Sourcing Decisions in a Supply Chain

Pricing and Revenue Management in a Supply Chain

Sustainability and the Supply Chain

Filters

Exam 14: Transportation in a Supply Chain

Discuss the importance of designing flexibility into the transportation network.

________ carriers offer a very fast and fairly expensive mode of transportation for cargo.

Quasi-market prices for transportation infrastructure result in higher prices at peak locations and times and lower prices otherwise.

The cost of various facilities in the shipper's supply chain network is

The combination of a high density of customers and long logistical distance is best served by contracting with a package carrier.

Managers should ensure that a firm's transportation strategy

A milk run is a route in which a truck either delivers product from a single supplier to multiple retailers or goes from multiple suppliers to a single retailer.

In almost all countries,roads,seaports,airports,rail and canals have this in common.

The ________ is the party that requires the movement of the product between two points in the supply chain.

Understanding the Supply Chain

Achieving Strategic Fit in a Supply Chain

Supply Chain Drivers and Metrics

Designing Distribution Networks and Applications to E-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Demand Forecasting in a Supply Chain

Aggregate Planning in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand

Coordination in a Supply Chain

Managing Economies of Scale in a Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Linking Product Availability to Profits

Sourcing Decisions in a Supply Chain

Pricing and Revenue Management in a Supply Chain

Sustainability and the Supply Chain

Filters