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Supply Chain Management, 5e (Chopra/Meindl) Chapter 14 Transportation in a Supply Chain 14.1 True/False Questions 1) Transportation plays a key role in every supply chain because products are usually produced and consumed in the same location. Answer: FALSE Diff: 1 Topic: 14.1 The Role of Transportation in a Supply Chain Learning Outcome: Compare common approaches to supply chain design 2) A distributor makes investment decisions regarding the transportation infrastructure and then makes oper
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   Supply Chain Management, 5e  (Chopra/Meindl)Chapter 14 Transportation in a Supply Chain 14.1 True/False Questions1) Transportation plays a key role in every supply chain because products are usually produced and consumed in the same location.Answer: FA! #i$$: 1Topic: 14.1 The %ole o$ Transportation in a !upply &hainearnin' (utcome: &ompare common approaches to supply chain desi'n) A distributor makes investment decisions re'ardin' the transportation in$rastructure and then makes operatin' decisions to try to ma*imi+e the return $rom these assets.Answer: FA! #i$$: ,Topic: 14.1 The %ole o$ Transportation in a !upply &hainAA&!-: Analytic !killsearnin' (utcome: &ompare common approaches to supply chain desi'n,) A carrier uses transportation to minimi+e the total cost transportation inventory in$ormation and $acility) while providin' an appropriate level o$ responsiveness to the customer.Answer: FA! #i$$: ,Topic: 14.1 The %ole o$ Transportation in a !upply &hainAA&!-: Analytic !killsearnin' (utcome: &ompare common approaches to supply chain desi'n4) The vehicle0related cost is incurred whether the vehicle is operatin' or not and is considered $i*ed $or short0term operational decisions by the carrier.Answer: T% #i$$: Topic: 14.1 The %ole o$ Transportation in a !upply &hainAA&!-: Analytic !killsearnin' (utcome: &ompare common approaches to supply chain desi'n2) A carrier3s decisions are a$$ected by the prices that the market will bear but not the responsiveness it seeks to provide its tar'et se'ment.Answer: FA! #i$$: Topic: 14. odes o$ Transportation and Their 5er$ormance &haracteristicsAA&!-: Analytic !killsearnin' (utcome: &ompare common approaches to supply chain desi'n 1401&opyri'ht 6 71, 5earson ducation 8nc. publishin' as 5rentice 9all  ) Transportation cost depends on the prices o$$ered by di$$erent carriers and the e*tent to which the shipper uses ine*pensive and slow or e*pensive and $ast means o$ transportation.Answer: T% #i$$: 1Topic: 14. odes o$ Transportation and Their 5er$ormance &haracteristicsAA&!-: Analytic !killsearnin' (utcome: &ompare common approaches to supply chain desi'n;) %ail is the dominant mode o$ $rei'ht transportation in the nited !tates and accounts $or over ;2 percent o$ the nation3s $rei'ht bill.Answer: FA! #i$$: Topic: 14.4 #esi'n (ptions $or a Transportation <etwork earnin' (utcome: &ompare common approaches to supply chain desi'n=) A milk run is a route in which a truck either delivers product $rom a sin'le supplier to multipleretailers or 'oes $rom multiple suppliers to a sin'le retailer.Answer: T% #i$$: 1Topic: 14.1 The %ole o$ Transportation in a !upply &hainearnin' (utcome: &ompare common approaches to supply chain desi'n>) ilk runs reduce outbound transportation costs by consolidatin' lar'e shipments.Answer: FA! #i$$: 1Topic: 14.4 #esi'n (ptions $or a Transportation <etwork AA&!-: Analytic !killsearnin' (utcome: &ompare common approaches to supply chain desi'n17) The mode o$ transportation that results in the lowest transportation cost will lower total costs $or a supply chain.Answer: FA! #i$$: Topic: 14.4 #esi'n (ptions $or a Transportation <etwork AA&!-: Analytic !killsearnin' (utcome: &ompare common approaches to supply chain desi'n11) 8'norin' inventory costs when makin' transportation decisions can result in choices that worsen the per$ormance o$ a supply chain.Answer: T% #i$$: Topic: 14.4 #esi'n (ptions $or a Transportation <etwork earnin' (utcome: &ompare common approaches to supply chain desi'n 140&opyri'ht 6 71, 5earson ducation 8nc. publishin' as 5rentice 9all  1) Firms can si'ni$icantly reduce the sa$ety inventory they re?uire by physically a''re'atin' inventories in one location which will also decrease transportation cost.Answer: FA! #i$$: Topic: 14.2 Trade0($$s in Transportation #esi'nearnin' (utcome: &ompare common approaches to supply chain desi'n1,) Temporal a''re'ation decreases a $irm3s responsiveness because o$ shippin' delay but also decreases transportation costs because o$ economies o$ scale that result $rom lar'er shipments.Answer: T% #i$$: 1Topic: 14.2 Trade0($$s in Transportation #esi'nAA&!-: Analytic !killsearnin' (utcome: &ompare common approaches to supply chain desi'n14) A $irm can meet customer needs by usin' tailored transportation to provide the appropriate transportation choice based on customer and product characteristics but at a hi'her cost.Answer: FA! #i$$: Topic: 14.2 Trade0($$s in Transportation #esi'nAA&!-: Analytic !killsearnin' (utcome: &ompare common approaches to supply chain desi'n12) Tailored transportation   is the use o$ di$$erent transportation networks and modes based on customer and product characteristics.Answer: T% #i$$: 1Topic: 14. Tailored Transportationearnin' (utcome: &ompare common approaches to supply chain desi'n1) The most important operational decision related to transportation in a supply chain is the routin' and schedulin' o$ deliveries.Answer: T% #i$$: Topic: 14. Tailored Transportationearnin' (utcome: &ompare common approaches to supply chain desi'n1;) Transportation is a si'ni$icant component o$ the costs incurred by most supply chains.Answer: T% #i$$: 1Topic: 14.1 The %ole o$ Transportation in a !upply &hainearnin' (utcome: &ompare common approaches to supply chain desi'n 140,&opyri'ht 6 71, 5earson ducation 8nc. publishin' as 5rentice 9all  14. ultiple &hoice Questions1) The movement o$ product $rom one location to another as it makes its way $rom the be'innin'o$ a supply chain to the customer3s hands is re$erred to asA) transportation.-) retailin'.&) distribution.#) manu$acturin'.Answer: A#i$$: Topic: 14.1 The %ole o$ Transportation in a !upply &hainearnin' (utcome: &ompare common approaches to supply chain desi'n) Transportation plays a key role in every supply chain becauseA) products are normally produced and consumed in the same location.-) products are rarely produced and consumed in the same location.&) the cost o$ transportation is inconse?uential.#) transportation is not a $actor in determinin' pro$itability.Answer: -#i$$: 1Topic: 14.1 The %ole o$ Transportation in a !upply &hainAA&!-: %e$lective Thinkin' !killsearnin' (utcome: &ompare common approaches to supply chain desi'n,) The key players in any transportation that takes place within a supply chain areA) the shipper and the receiver.-) the shipper and the supplier.&) the shipper and the manu$acturer.#) the shipper and the carrier.Answer: ##i$$: Topic: 14.1 The %ole o$ Transportation in a !upply &hainearnin' (utcome: &ompare common approaches to supply chain desi'n4) 8nvestment decisions re'ardin' the transportation in$rastructure rails locomotives trucks airplanes etc.) are the primary concern o$ A) the shipper.-) the supplier.&) the manu$acturer.#) the carrier.Answer: ##i$$: ,Topic: 14.1 The %ole o$ Transportation in a !upply &hainearnin' (utcome: &ompare common approaches to supply chain desi'n 1404&opyri'ht 6 71, 5earson ducation 8nc. publishin' as 5rentice 9all
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