In building a daily route schedule, which of the following factors provides the greatest challenge for a transportation manager?
A. Random demand
B. Fixed traffic patterns
C. Data cleanup
D. Customer base
Which of the following costs represents an example of a fixed cost in the motor carrier industry?
A. Vehicle registration
B. Fuel
C. Maintenance
D. Terminals
A company desires to improve its cash flow situation by postponing its customs duties payment until the last possible point in the supply chain.
The company should consider using which type of warehouse?
A. Bonded
B. Contract
C. Third-party
D. Government
An international organization has a pricing strategy that allows it to sell its product at different prices depending on the country where the product is sold.
Which of the following unintended consequences is a result of this strategy?
A. Counterfeit products in the supply chain
B. Gray market products in the supply chain
C. Hostile takeover by a conglomerate
D. Decrease in profits due to variable revenues
Which of the following facility location techniques is equivalent to a break-even point?
A. Weighted-factor rating method
B. transportation problem model
C. Cost volume analysis
D. Center-of-gravity method
A manager would like to insure marine cargo for a 12-month period. Which of the following policies would be best to provide coverage for all of the shipment during this period?
A. Open
B. Special cargo
C. All-risks
D. Warehouse to warehouse
Which of the following types benchmarking would a company utilize in order to determine why a significant gap exists in its order fill rates?
A. Performance benchmarking
B. Process benchmarking
C. Product benchmarking
D. Strategic benchmarking
An oil and gas company needs to ship petrol 1,000 miles from the port on entry to an inland refinery. Which of the following modes of transportation provides the best long-term, cost-efficient solution?
A. Rail
B. Trucking
C. Pipeline
D. Barge
In an effort to increase their customer service levels and reduce order cycle time, a company is considering adding two additional warehouses to their overall operations.
As a result, which of the following statements best reflects the cost impact of the additional warehouses?
A. Lower inventory costs and higher facility costs
B. Higher inventory costs and lower facility costs
C. Higher inventory costs and higher inbound transportation costs
D. Lower inventory costs and lower inbound transportation costs
When defining the business requirements of a new distribution center, one of the first requirements to be considered is the:
A. type of construction material needed.
B. customer service levels to be met.
C. calculation of the planned staffing levels.
D. development of the material handling equipment lists.
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