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Temporal aggregation


A) is the process of combining orders across time.
B) increases a firm's responsiveness.
C) decreases transportation costs because of economies of scale.
D) all of the above

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Ignoring uncertainty in demand encourages a greater use of


A) expensive but flexible transportation modes.
B) inexpensive and inflexible transportation modes.
C) inexpensive and flexible transportation modes.
D) expensive and inflexible transportation modes.

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Which transportation network design option establishes an extra layer between suppliers and retailers to store inventory and to serve as a transfer location?


A) Direct shipping network
B) Direct shipping with milk runs
C) All shipments via central DC
D) Shipping via DC using milk runs

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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 average cost per motorist?


A) 2.5
B) 5
C) 5t
D) 2.5t

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Cheaper modes of transport typically have


A) shorter lead times and smaller minimum shipment quantities.
B) shorter lead times and larger minimum shipment quantities.
C) longer lead times and smaller minimum shipment quantities.
D) longer lead times and larger minimum shipment quantities.

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________ are the preferred mode of transport for online businesses such as Amazon.com and Dell, as well as for companies such as W.W. Grainger and McMaster-Carr that send small packages to customers.


A) Air
B) Package carriers
C) Rail
D) Water

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


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

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Which transportation network design option uses a combination of other options to reduce the cost and improve responsiveness of the supply chain?


A) Direct shipping network
B) Direct shipping with milk runs
C) Shipping via DC using milk runs
D) Tailored network

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Serving a high density of customers at a long distance is best done using


A) an LTL carrier.
B) a cross dock distribution center with milk runs.
C) a package carrier.
D) a private fleet with milk runs.

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The most important operational decision related to transportation in a supply chain is the routing and scheduling of deliveries.

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Which transportation network design option has the elimination of intermediate warehouses and its simplicity of operation and coordination as its major advantage?


A) Direct shipping network
B) Direct shipping with milk runs
C) All shipments via central DC
D) Shipping via DC using milk runs

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When infrastructure is publicly owned, it is important to price usage to reflect


A) the cost of rebuild the infrastructure once it is fully depreciated.
B) the incremental profit from the use of the infrastructure.
C) the marginal impact on the cost to society.
D) the market clearing price.

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The ________ is the party that moves or transports the product.


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

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The use of software to determine transportation routes has been the most common IT application in transportation.

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The most common use of information technology in transportation is to


A) determine transportation routes using software.
B) calculate shipping rates.
C) connect buyers and sellers.
D) place person to person calls using cellular technology.

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