Transportation Modes Quiz

________ are the preferred mode of transport for online businesses such as Amazon.com and Dell, as well as for companies such as W.W. Grainger and McMaster-Carr that send small packages to customers.

• Rail

• Package carriers

• Water

• Air

A shrewd supply chain manager would aggregate only safety inventory and use an inexpensive mode of transportation for replenishing cycle inventory if she is dealing with a

• high-value product and low demand.

• low-value product and high demand.

• high-value product and high demand.

• low-value product and low demand.

________ carriers offer a very fast and fairly expensive mode of transportation for cargo.

• Water

• Rail

• Truck

• Air

Cheaper modes of transport typically have

• longer lead times and larger minimum shipment quantities.

• shorter lead times and larger minimum shipment quantities.

• shorter lead times and smaller minimum shipment quantities.

• longer lead times and smaller minimum shipment quantities.

Ignoring uncertainty in demand encourages a greater use of

• inexpensive and inflexible transportation modes.

• expensive but flexible transportation modes.

• inexpensive and flexible transportation modes.

• expensive and inflexible transportation modes.

In almost all countries, roads, seaports, airports, rail and canals have this in common.

• They are the source of most of the tax revenue for municipalities.

• They are located near the water.

• They are staffed by foreign nationals.

• They were built and/or managed by the government.

Inexpensive and inflexible transportation modes tend to

• perform very poorly when plans change.

• perform well when everything goes as planned.

• perform poorly.

• all of the above

Investment decisions regarding the transportation infrastructure (rails, locomotives, trucks, airplanes, etc.) are the primary concern of

• the manufacturer.

• the carrier.

• the shipper.

• the supplier.

It is best to disaggregate all inventories and use an inexpensive mode of transportation for replenishment when you have a

• low-value product and low demand.

• low-value product and high demand.

• high-value product and high demand.

• high-value product and low demand.

Managers should ensure that a firm's transportation strategy

• involves cost minimization.

• supports its competitive strategy.

• involves profit maximization.

• is separate from competitive strategy.