CHAPTER 1: INTRODUCTION TO TRANSPORTATION PART 2

Which factor in freight transportation directly affects the amount of stock a company must keep on hand?

• Reliability

• Capability

• Transit Time

• Security

A delivery company promises to deliver 95% of packages on time. This is an example of improving which factor?

• Accessibility

• Reliability

• Security

• Capability

If a transportation provider cannot reach a rural village because of poor road access, which factor is most affected?

• Accessibility

• Capability

• Security

• Transit Time

Transporting hazardous chemicals requires special handling procedures. Which factor does this describe?

• Security

• Reliability

• Capability

• Accessibility

A shipping company installs GPS trackers on all its trucks to prevent theft. This improves which factor?

• Capability

• Security

• Transit Time

• Reliability

Which statement about transit time is TRUE?

• Shorter transit time increases the risk of stockouts.

• Longer transit time reduces inventory holding costs.

• Longer transit time increases both inventory holding costs and risk of stockouts.

• Transit time has no effect on inventory costs.

Longer transit times can increase both inventory holding costs and the risk of stockouts.

• TRUE

• FALSE

Reliability refers to the ability of a carrier to handle special service requirements.

• TRUE

• FALSE

Accessibility is about the ability of the transportation provider to move goods between specific origin and destination points.

• TRUE

• FALSE

Security in freight transportation focuses only on protecting goods from damage, not theft.

• TRUE

• FALSE