1. Outsourcing or using third party logistics services has:
a. remained flat due to increased challenges of international logistics.
b. become increasingly popular with small organizations, but not large ones.
c. declined in popularity due to declining service provider performance.
d. declined as transportation has been re-regulated.
e. increased as organizations focus on core competencies.
2. Transportation rates:
a. practically unlimited because of the superiority of hardware and software.
b. practically unlimited because radio frequency waves have unlimited range.
c. practically unlimited because of few land or sea restraints to laying cable.
d. very limited because network and distribution costs are high.
e. very limited because most countries severely restrict land and sea cables
3. Organizations operating under a just-in-time system, require:
a. international coverage.
b. heightened security.
c. lowest price.
d. on-time deliveries.
e. real-time package tracking
4. When assessing the quality of a telecommunications provider, a key indicator of superior quality to a competitor is the ability to:
a. compress more high resolution information on the same bandwidth.
b. have the leanest network of repeater stations.
c. have the most extensive intermodal operations.
d. own and operate the largest network of land and sea cable.
e. own radio frequencies with greater range.
5. Supply’s involvement in transportation decisions is:
a. insignificant and declining due to the growth of supply chain management.
b. growing due to the increase in the number of railroads and trucking companies throughout the world..
c. growing due to the deterioration of roads, bridges, and highways in North America.
d. declining due to the growth of outsourcing transportation decisions to third party logistics providers.
e. growing in terms of direct functional responsibility and cross-functional efforts to devise solutions with logistics services providers.
6. Fuel efficiency and energy consumption considerations:
a. have no impact on transportation strategy in most organizations.
b. are a factor in transportation strategy development in many organizations.
c. encourage shippers to focus on increasing LTL shipments.
d. lead to disintermediation in the supply chain.
e. result in lower use of third party logistics providers.
7. The selection of the FOB point is important to the purchaser, for it determines:
a. who pays the carrier.
b. when legal title to goods being shipped passes to the buyer.
c. who is responsible for preparing and pursuing loss or damage claims.
d. who routes the freight.
e. all of the above
8. One of the advantages of integrated carriers (truck-air) like UPS and Federal Express is that they:
a. utilize commercial airlines for air service.
b. outsource much of their air network..
c. own their own aircraft.
d. rely more on air than ground transportation.
e. outsource much of their ground network.
9. When selecting freight carriers, buyers are most concerned with:
a. best over value
b. intermodal capabilities
c. supply chain and delivery speed
d. geographic coverage
e. shipment security
10. Over the past two decades, logistics costs as a percent of the U.S. gross domestic product (GDP) have:
a. been extremely volatile due to international events.
b. increased due to transportation deregulation and technology investments.
c. declined due to deregulation, technology investment, and e-commerce.
d. doubled due to growth in international sourcing.
e. remained constant due to a stagnant global economy.