MGMT 474 Roberts LaTech exam 1 Flashcards by Hannah Brotherton

Supply chain management promotes the building of a world-class supply chain team through the selection of the _______ players and the establishment of the _________ relationships

right; right

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There are 5 external drivers of supply chain management. Name 3 of them.

Empowered Consumer
Changing Channel Structure and Relationships
Government Policy and Regulation
Globalization of the Economy and Markets
Technology

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People want increased access to information and are more demading of competitive pricing, high quality, and 24/7/52 service. This is an example of which External Driver of Change?

Empowered Consumer

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I listed 6 incentives for supply chain management. One included shorter lead times. Name 2 others.

Cost savings (efficiency)
Better customer service (effectiveness)
Better quality
Increased flexibility
Reduced uncertainty

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Global transportation management has been improved because of technological “Game Changers.” Name 1 of these from the slides.

The internet
Industrial robotics
Digitization of manufacturing (3D printing)

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The term supply chain management came about in the early 1990s (roughly). But supply chain management isn’t new. What was it called previously?

Physical distribution (1960s)
Business Logistics/Integrated Logistics (1980s)

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Trade is beneficial if the cost of production for the same product differs between countries. This is known as what?

absolute advantage

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Trade is beneficial even if one country has lower cost of production than the other country in multiple products. This is known as what?

comparative advantage

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It doesn’t make sense for a company to outsource what?

core activities

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This specialty service offered by some 3PLs covers the final dock-to-door or store-to-door delivery. It is also one of the most challenging aspects of military logistics.

last mile delivery

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This specialty service offered by some 3PLs is a short-haul movement of intermodal containers from origin to ocean ports and rail yards and from these facilities to their ultimate destination. I showed a picture of this in class where a crane was taking a container off of a rail car to load it onto a truck.

Drayage

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When the market for transportation services becomes very competitive, ____________ becomes scarce, not scary, to companies.

Transportation capacity

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3PL providers can be distinguished by their level of resource ownership. What are the 2 types of resource ownership discussed in the book/slides?

Asset based and non-asset based.

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All motor carriers receive a safety fitness rating. Who makes the inspection and determines the rating?

FMCSA
Federal Motor Carrier Safety Administration

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Out of TL and LTL carriers, which has more capital investment and why?

LTL because they need facilities such as break-bulk facilities.

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What is the primary division between motor carriers?

For hire and private.

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Air carrier revenues are concentrated in which group of carriers. There are 3 types.

Major, Nationals, and Regionals

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The air carrier industry has relatively low fixed costs compared to other industries such as the rail industry. Why is this?

Publicly provided airways and terminals.

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The hub-and-spoke design is used extensively in the airline industry. Increased load factors is one of the results of this. Is this a pro or a con and why?

Pro - you are getting more people in the seats, thus you are generating more revenue per flight.

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80% of regional airlines offer service as part of a major airline. This provides better access to more passengers and reduces fares and driving time for customers. Think of American Eagle and American Airlines. What is this called?

Code Sharing
Interline Agreements

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How many Class I railroads are in existence?

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Using this Incoterm means the importer takes full responsibility from the initial point of departure.

E-term

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The water carrier’s principal competitor for the movement of grain, coal, and ores is which mode of transportation?

railroads

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This was the first principal form of long-distance freight and people transport.

water transportation

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These facilitate the flow of goods between countries and are a harmonized set of selling terms that was established by the International Chamber of Commerce.

Incoterms

What does FOB, Free on Board, mean?

The risk of damage is transferred to the importer once the cargo crosses the ship's rail

What are the four categories of Incoterms?

C, D, E, and F

This major global transportation process enables timely freight arrival.

Communication processes & information sharing

Pricing based on what the traffic will bear is known as this.

Value of service pricing

Which market structure is characterized by low number of sellers, large size of sellers and buyers, heterogenous products, high market entry restrictions, and low demand elasticity?

monopoly

Which type(s) of markets can be found in the transportation industry? The types are monopoly, monopolistic, oligopoly, and pure competition.

All of them

For deregulation to be successful, the market must closely resemble what?

perfect competition

Charging different prices to different buyers who use the same commodity or service is known as:

Third degree price discrimination

What are the classifications of waterway transportation?

Internal water carriers, Great Lakes carriers, coastal carriers, intercoastal carriers

Which mode of transportation never has a backhaul?

Pipeline

Pickup and Delivery terminals provide the pickup/delivery services for freight and peddle runs. What are the 2 elements of a peddle run?

STEM time and peddle time

Name 2 of the 5 contributing factors for global flows of trade.

Population size and age distribution, urbanization, land and resources, technology and information, and globalization.

I am low cost, slow, have a limited network, and typically carries liquid commodities?

pipeline

I have a high capacity, low cost, slow line-haul transit, and move goods between international seaports.

Water transportation

I am used to move urgent shipments as quickly as possible over long distances.

Air transportation

I am highly accessible, comparatively fast, high cost, and have a limited capacity.

Motor carrier transportation

I have a high capacity, low cost, built-in intermodal support, and have been characterized as having poor service throughout history.

Rail Transportation

Over the road carriers are usually paid on the basis of the ___________.

miles driven

What type of 3PL traces their origin to freight movement via truck, rail, or other mode?

Transportation based

What type of 3PL originated from the public or contract warehousing business?

Distribution based

What group of service providers is organized to move e-commerce delivery of goods to consumers’ homes?

Household goods movement

What group of 3PLs does not own equipment, they instead arrange transportation services?

Forwarder based

What types of 3PLs provide services such as freight payment, freight bill auditing, and freight claims management?

Financial based

Some companies decide to avoid carriers and 3PLs and retain a __________ for their shipping needs.

private fleet

3PLs are typically categorized based upon their foundational service offering such as:

Transportation, Distribution, and Forwarder

Which strategic requirement involves 3PLs supporting home delivery, manufacturer direct delivery, and alternate site delivery?

Omni-channel agility

Which mode of transportation has costs that come closest to pipeline costs?

water

Water carrier's intramodal competition is characterized by

very limited due the nature of industry

Which is the first major classification of water carriers?

for hire and private carriers

Which best describes the domestic water carrier industry?

a limited number of small firms

The water carrier's principal competitor for the movement of grain, coal, and ores is which mode of transportation?

railroads

Water transportation is attractive to shippers for the movement of which commodities?

basic raw materials

Water carriage is recognized as being a catalyst for economic activity in a community. This recognition is used as a justification for which of the following?

public investment in and operation of ports

What medium is used to move coal in slurry lines?

water

Which is a significant factor allowing the pipelines to increase their capacity and move an increased amount of tonnage?

larger pipe diameters

Which is a major advantage offered by the pipelines?

low rates

The pipelines provide their own rights of way, construct the pipelines and pumping stations, pay property taxes, and provide for the preventative maintenance of their transportation networks. This contributes to the high proportion of which of the following in the pipeline's cost structure?

fixed costs

Which of the following best describes the oil pipelines in the United States?

primarily operated as common carriers on a for-hire basis

Which event marked the beginning of the modern airline industry?

The use of airplanes for mail transport

Mountain Airlines has annual operating revenues of less than $75 million with hubs in Denver and Salt Lake City. This airline would be classified in which air carrier category?

regional carrier

The traffic manager for WLG, Inc is evaluating transportation modes for shipment of the company's products. WLG's components division produces electronic assemblies according to buyer's specifications. The typical product is high-value--in the range of $30,000 to $50,000, small--less than 8 inches square, very fragile, insurance costs are $1750 per day for each item, and the shipment distance is 2,500 miles. Which mode of transportation would be most appropriate?

Air

The Transportwriter.com corporation owns four corporate aircraft of various sizes which they use to transport executives to various company locations, and as well as documents and small freight between the company headquarters and its production facilities. What type of carrier is Transportwriter?

private

Air carries face _____ competition from surface modes for either freight or passengers.

a little amount

Air carries face _____ competition from other air carriers for either freight or passengers.

very intense

What does the operating ratio measure?

operating expense divided by operating income

What is the primary method of service competition between air carriers?

frequency and timing

Which of the following commodities would be most likely to be shipped on an air carrier?

high-value and time-sensitive goods

Which cost element of the U.S. scheduled airlines accounts for the largest portion of operating costs?

fuel

What major factor is the main determinant in air cargo pricing?

weight

Which government agency specifies acceptable flight operations and the hours of service for pilot?

FAA

Deregulation of the airlines, in 1978, led to expectations that the number of carriers would increase. What has been the actual result of deregulation regarding the number of carriers in the market?

The numbers of carriers did increase initially but has remained steady of late.

Most airline revenues arise from:

passenger travel.

Shippers using air cargo transport may have to pay an over-dimensional charge. The charge is assessed by the carrier to gain a more appropriate revenue in which situation?

when the cargo shipped does not weigh much but takes up a lot of space.

What do the users of truck service benefit from?

a. lower inventory levels and lower inventory needed for a full load due to smaller capacities compared to other modes

All carriers receive a safety fitness rating. Who makes the inspection and determines the rating?

Federal Motor Carrier Safety Administration

What is a Private Carrier?

a trucking operation that only hauls freight for the firm which owns it

What of the following is not one of the current issues facing the trucking industry in the future?

Highway construction with its resultant delays

A reason for driver turnover is:

Driver shortage

What is the status of competition within the motor carrier industry?

The industry is highly competitive with competition between all carriers as well as with firms such as United Parcel Service and FedEx

There is a relatively small amount of capital required to enter:

the truckload industry

What is one of the primary reasons for the growth of trucking after World War II?

The Interstate Highway System was constructed which allowed trucks to give faster service over longer distances.

What does most of the trucking industry consist of?

carriers operating 6 or fewer trucks

What is the largest single expense item for trucking firms? I

labor

Where does funding for highways come from?

highway user taxes

Railroad carloadings have declined since 1900. What is the primary reason for the decline?

larger cars and increasing car productivity

Intramodel competition is:

various modes seeking to gain market share from other modes

What led to the erosion of rail dominance in U.S. transportation?

Government funded construction of roads

Which is a major reason for the decline in the number of rail companies?

mergers and unification occurring in the railroad industry

The railroads dominate the market for:

hauling 30,000 pounds or more over 300 miles.

What is the difference between TOFC and COFC service?

one method moves the trailer on its wheels and the other moves only the "box" or the container.

The major cost element borne by the railroad industry is the:

Rights of way

What do the majority of rail movements involve?

low value, heavy commodities

Railroads are:

more energy efficient than most other modes

One of the benefits of a railroad merger is:

less frequent interchanges between companies means faster service

A pricing objective that aims to increase cash flow through the use of low prices is referred to as:

Survival-based pricing

Three necessary conditions must be met before a seller can practice third-degree price discrimination. The conditions are: buyers must be separated into groups or submarkets according to their elasticities of demand, the seller must possess some degree of monopoly power, and

the seller must prevent transfer of sales between the groups or submarkets.

Which is correct regarding value-of-service pricing?

the model considers the ability of the commodity to bear a charge

The relevant market structure under deregulation is described by a theory which substitutes potential competition for the active participation of many sellers. What is this theory called?

contestable markets

Under transportation regulation, the amount found in a Tariff as payment to a carrier for performing a given transport service is called a:

rate

A profit-maximizing oriented carrier will not set a price in the long-run that would:

prohibit the movement of freight or passengers.

The basic types of rates are class, exception and:

Commodity

Value of service pricing is based on the concept which states:

rates should be related to value of the commodity - the higher the value of the commodity the higher the rate should be

Which of the following is not a condition for pure competition

Involves a heterogeneous product or service

Carrier pricing decisions fall into three categories. The categories are setting prices for a new service, modifying prices over time, and

responding to price changes.

What key element is critical to the ability to sell products made in large scale production facilities?

efficient transportation

Which of the following countries are in the BRIC?

b. Brazil, Russia, India, and China

The Mississippi River is regarded as an important avenue for commerce in the U.S. because:

It is a major transportation artery

On the micro level, global interdependence has:

Increased competition

What positive outcomes have occurred in the global economy with increase interdependence:

lower prices, wider availability of goods, and new employment opportunities

Reverse logistics systems are developed for:

Returning unacceptable products

transportation shipment of 75 tons for 125 miles would be:

9375 ton-miles

Which mode of transportation is most important in terms of passenger-miles?

Air Carriers

Forward information in the supply chain is utilized to provide:

advanced shipment notices, order status, and inventory availability

Transportation systems are critical to industrialized societies because?

They allow producers to expand their market areas

Value of service considers the __________?

impact of transportation costs and services on the demand for the product

One effective method to reduce the bullwhip effect in a supply chain is to replace inventory with:

information

MGMT 474 Roberts LaTech exam 1 Flashcards

(121 cards)