SCM 622 - Topic 7 Part 2

Multiple Choice

What percentage of the GDP of the United States was represented by transportation activity in 2002?

• 5 percent

• 10 percent

• 15 percent

• 20 percent

Multiple Choice

Why is transportation considered an important supply chain driver?

• Because products are produced and consumed in the same location

• Because it helps in the movement of products

• Because it reduces costs

• Because it increases production

Multiple Choice

What is the role of transportation in a supply chain?

• To store products

• To move products from one location to another

• To produce products

• To consume products

Multiple Choice

What type of transportation is used for oil and natural gas and owned by the company using them?

• pipeline

• rail

• air

• water

Multiple Choice

What are the different modes of transportation used in supply chains?

• Air

• Package carriers

• Truck

• Rail

Open Ended

How has improved road, air, and port infrastructure impacted the development of China?

Multiple Choice

What are the different design options for a transportation network?

• Direct Shipment Network

• Direct Shipping with Milk Runs

• All Shipments via Central DC

• Shipping via DC using Milk Runs

Multiple Choice

What is the main advantage of using a direct shipment network for transportation?

• Lower transportation costs

• Faster delivery times

• Direct shipments from suppliers

• Increased inventory levels

Multiple Choice

Which of the following is both the most expensive and fastest method of shipping?

• boat

• plane

• train

• truck

Multiple Choice

In direct shipping with milk runs, what must a supply chain manager decide on?

• The type of products to deliver

• The routing of each milk run

• The suppliers to use

• The delivery schedule

Multiple Choice

What is a milk run in the context of supply chain management?

• A route for delivering products from multiple suppliers to one buyer

• A method for direct shipping to multiple locations

• A delivery system for a single supplier to multiple retailers

• A type of truck used for deliveries

Multiple Choice

The Marketing & Sales Department is responsible for ensuring the warehousing of finished goods.

• True

• False

Open Ended

Explain how the presence of Distribution Centers (DCs) can help reduce supply chain costs.

Multiple Choice

How does Seven-Eleven Japan utilize milk runs to optimize its delivery process?

• By sending large shipments

• By using multiple suppliers

• By cross-docking deliveries

• By reducing delivery locations

Multiple Choice

What are the benefits of using milk runs in shipping from a distribution center (DC)?

• Reduce transportation costs

• Increase delivery times

• Consolidate small shipments

• Fill trucks completely

Multiple Choice

What is cross docking and how does it benefit transportation?

• A method to store goods

• A shipping method that transfers goods directly

• A way to unload products

• A technique for warehouse management

Multiple Choice

How are high demand and low demand products handled in a tailored network?

• High demand products are shipped directly, low demand products are consolidated

• Both are shipped directly

• Only low demand products are shipped

• High demand products are consolidated

Open Ended

What is the goal of using a tailored network in transportation?

Multiple Choice

What combination of methods does transportation use in a tailored network?

• Cross-docking and milk runs

• Only TL carriers

• Only LTL carriers

• None of the above

Multiple Choice

What is the purpose of using a tailored network in transportation?

• To reduce costs and improve responsiveness

• To eliminate all transportation options

• To focus only on high-demand products

• To avoid using package carriers

Multiple Choice

What are the key trade-offs that managers must consider when making transportation decisions?

• Transportation and inventory cost trade-off

• Transportation cost and customer responsiveness trade-off

• Transportation and facility cost trade-off

• Transportation and processing cost trade-off

Multiple Choice

What are the two fundamental supply chain decisions involving the trade-off between transportation and inventory costs?

• Choice of transportation mode

• Inventory aggregation

• Supplier selection

• Warehouse location

Multiple Choice

What are the three main types of risk to consider when transporting a shipment between two nodes on the network?

• The risk that the shipment is delayed

• The risk that the shipment does not reach its destination because intermediate nodes or links are disrupted by external forces

• The risk of hazardous material

• The risk of theft during transportation

Multiple Choice

The _____ looks at likely risks to the business, such as lower-than-expected sales and emergencies that might affect it.

• operational plan

• risk management plan

• sublease plan

• contingency plan

Multiple Choice

Which best describes risk management?

• managing the risk that is in the job

• giving security to the job and workers so they don't get robbed

• providing security as well as reducing the risks associated with the market

• reducing the amount of risks you take on the job

Open Ended

Wal-Mart designs its networks so that a DC supports several large retail stores. Explain how the company can use such a network to reduce transportation costs while replenishing inventories frequently.

Poll

How confident do you feel about this topic now?

• Very confident
• Somewhat confident
• Not confident