1. Compared with rail carriers, motor carriers carry __________ ton-miles and earn _________ revenues

a. more, lessb. more, morec. less, mored. less, less

1. Compared with rail carriers, motor carriers carry __________ ton-miles and earn _________ revenues

a. more, lessb. more, morec. less, mored. less, less

2. All of the following are assumptions of the EOQ except:

a. constant and known rate of demandb. consistent lead timec. no stock-outs allowedd. capital availability is limitede. no inventory in transit

2. All of the following are assumptions of the EOQ except:

a. constant and known rate of demandb. consistent lead timec. no stock-outs allowedd. capital availability is limitede. no inventory in transit

3. All the following are inventory risk costs except:

a. obsolescenceb. taxesc. damaged. shrinkagee. relocation costs

3. All the following are inventory risk costs except:

a. obsolescenceb. taxesc. damaged. shrinkagee. relocation costs

4. The demand for transportation services is identified as which of the following?

a. Electronicb. Elusivec. Derivedd. Compensated

4. The demand for transportation services is identified as which of the following?

a. Electronicb. Elusivec. Derivedd. Compensated

5. Which type of motor carrier typically has shipments headed for more than one destination?

a. PUDb. Class IIIc. TLd. LTL

5. Which type of motor carrier typically has shipments headed for more than one destination?

a. PUDb. Class IIIc. TLd. LTL

6. What did the 3R Act establish?

a. Amtrakb. Conrailc. Government control over Amtrakd. Federal regulation of the pipelines

6. What did the 3R Act establish?

a. Amtrakb. Conrailc. Government control over Amtrakd. Federal regulation of the pipelines

7. Which category dominates the for‑hire segment of the water carrier industry?

a. commonb. contractc. exemptd. regulated

7. Which category dominates the for‑hire segment of the water carrier industry?

a. commonb. contractc. exemptd. regulated

8. How does a LASH ship differ from a ship that offers container service?

a. the LASH ship travel inland waterwaysb. container service involves only inland

waterwaysc. the LASH ship carries loaded bargesd. container service is for make‑bulk

shipments

8. How does a LASH ship differ from a ship that offers container service?

a. the LASH ship travel inland waterwaysb. container service involves only inland

waterwaysc. the LASH ship carries loaded bargesd. container service is for make‑bulk

shipments

9. Which of the following is not a legally defined form of transportation?

a. common carriersb. contract carriersc. exempt carriersd. private carrierse. preferred carriers

9. Which of the following is not a legally defined form of transportation?

a. common carriersb. contract carriersc. exempt carriersd. private carrierse. preferred carriers

10.Generally, at higher volumes of throughput, a firm should utilize:

a. a public warehouseb. a federal warehousec. a local warehoused. a private warehouse

10.Generally, at higher volumes of throughput, a firm should utilize:

a. a public warehouseb. a federal warehousec. a local warehoused. a private warehouse

11. All of the following are true of Charter (or Tramp) shipping industry, except:

a. consist mostly of shiploads of one commodity

b. very cost orientedc. usually meant for a single shipperd. operate on fixed routes

11. All of the following are true of Charter (or Tramp) shipping industry, except:

a. consist mostly of shiploads of one commodity

b. very cost orientedc. usually meant for a single shipperd. operate on fixed routes

12. Federal regulation of the railroads started in:

a. 1906b. 1873c. 1887d. 1898

12. Federal regulation of the railroads started in:

a. 1906b. 1873c. 1887d. 1898

13.Which type of warehouse stores items for producers that wish to postpone payment of taxes on imported items stored?

a. field warehouseb. private warehousec. federal warehoused. bonded warehouse

13.Which type of warehouse stores items for producers that wish to postpone payment of taxes on imported items stored?

a. field warehouseb. private warehousec. federal warehoused. bonded warehouse

14.Which charter vessel arrangement transfer full control of the ship to the charterer?

a. voyageb. timec. demised. liner

14.Which charter vessel arrangement transfer full control of the ship to the charterer?

a. voyageb. timec. demised. liner

15. The domestic waterway industry in the United States was regulated by an Act of Congress in:

a. 1912b. 1920c. 1940d. 1942e. never regulated at all

15. The domestic waterway industry in the United States was regulated by an Act of Congress in:

a. 1912b. 1920c. 1940d. 1942e. never regulated at all

16.If demand and lead time are constant, only ___________ is necessary:

a. Associated stockb. Cycle stockc. Safety stockd. Speculative Stocke. Seasonal stock

16.If demand and lead time are constant, only ___________ is necessary:

a. Associated stockb. Cycle stockc. Safety stockd. Speculative Stocke. Seasonal stock

17. Three primary forms of ship chartering are used. Which charter form has the ship owner renting the vessel for a long period of time and the chartering party (or the shipper) furnishing the crew and physically operating the vessel?

a. one‑way voyage charterb. two‑way voyage charterc. time charterd. bareboat or demise charter

17. Three primary forms of ship chartering are used. Which charter form has the ship owner renting the vessel for a long period of time and the chartering party (or the shipper) furnishing the crew and physically operating the vessel?

a. one‑way voyage charterb. two‑way voyage charterc. time charterd. bareboat charter

18.When the terms of shipment are "CIF” (Cost, Insurance, Freight), the SELLER is responsible for all costs of the shipment except:

a. Export clearance and documentationb. Inland freight, in seller’s own countryc. Loading on vessel in seller’s countryd. Ocean freighte. Unloading vessel in buyer’s country

18.When the terms of shipment are "CIF” (Cost, Insurance, Freight), the SELLER is responsible for all costs of the shipment except:

a. Export clearance and documentationb. Inland freight, in seller’s own countryc. Loading on vessel in seller’s countryd. Ocean freighte. Unloading vessel in buyer’s country

19.How do carrying costs and order costs vary in the simple EOQ model?

a. according to the time of the year and seasonality of demand

b. directlyc. inverselyd. not at all

19.How do carrying costs and order costs vary in the simple EOQ model?

a. according to the time of the year and seasonality of demand

b. directlyc. inverselyd. not at all

20.Which category of ocean shipping offers common carrier service, sailing on set schedules over specified sea routes?

a. liner serviceb. charter vesselsc. private vesselsd. demise charter vessels

20.Which category of ocean shipping offers common carrier service, sailing on set schedules over specified sea routes?

a. liner serviceb. charter vesselsc. private vesselsd. demise charter vessels

21.Given that inventory valued at full cost equals $10 million, variable cost of the inventory is 78% of the full cost, and the inventory carrying cost is 30%, then the cost of carrying the inventory investment for one year is:

a. $7.8 millionb. $3.0 millionc. $2.3 milliond. $10 millione. none of the above are correct

21.Given that inventory valued at full cost equals $10 million, variable cost of the inventory is 78% of the full cost, and the inventory carrying cost is 30%, then the cost of carrying the inventory investment for one year is:

a. $7.8 millionb. $3.0 millionc. $2.3 milliond. $10 millione. none of the above are correct

22.Using the fixed order quantity model under conditions of certainty, which is the reorder point if lead time is a constant 5 days, and yearly demand is 10,000 units (assume 250 working days in the year)?

a. 100b. 200c. 400d. 5,000

22.Using the fixed order quantity model under conditions of certainty, which is the reorder point if lead time is a constant 5 days, and yearly demand is 10,000 units (assume 250 working days in the year)?

a. 100b. 200c. 400d. 5,000

23.When the terms of shipment are "FAS” (Free Alongside Ship), the BUYER is responsible for all costs of the shipment except:

a. Export clearance and documentationb. Inland freight, in seller’s own countryc. Loading on vessel in seller’s countryd. Ocean freighte. Unloading vessel in buyer’s country

23.When the terms of shipment are "FAS” (Free Alongside Ship), the BUYER is responsible for all costs of the shipment except:

a. Export clearance and documentationb. Inland freight, in seller’s own countryc. Loading on vessel in seller’s countryd. Ocean freighte. Unloading vessel in buyer’s country

24.Capacity of ships, in general, is most likely to be defined in terms of

a. Deadweight tons (DWT) b. Net registered volume (NRV) c. Bale cubic (BC) d. Ship long tons (SLT) e. Measurement ship tons (MST)

24.Capacity of ships, in general, is most likely to be defined in terms of

a. Deadweight tons (DWT) b. Net registered volume (NRV) c. Bale cubic (BC) d. Ship long tons (SLT) e. Measurement ship tons (MST)

25.What are the required inputs for an MRP?

a. production planning file, inventory status file, master production schedule

b. production planning file, master production schedule, bill of materials

c. master production schedule, bill of materials, customer order file

d. master production schedule, bill of materials, inventory status file

25.What are the required inputs for an MRP?

a. production planning file, inventory status file, master production schedule

b. production planning file, master production schedule, bill of materials

c. master production schedule, bill of materials, customer order file

d. master production schedule, bill of materials, inventory status file

26.The cost structure of liner operations is

a. largely fixed.b. largely variable.c. evenly balanced between fixed and

variable.d. largely common and variable.

26.The cost structure of liner operations is

a. largely fixed.b. largely variable.c. evenly balanced between fixed and

variable.d. largely common and variable.

27.The “Undercharge” issue was caused by the excessive fare discounts offered by the:

a. Airlinesb. International shipping linesc. ICCd. Motor carriers

27.The “Undercharge” issue was caused by the excessive fare discounts offered by the:

a. Airlinesb. International shipping linesc. ICCd. Motor carriers

28.All of the following are true of the Liner shipping industry, except:

a. operate on regular schedulesb. operate on regular routesc. usually meant for a single shipperd. rates are publishede. very service oriented

28.All of the following are true of the Liner shipping industry, except:

a. operate on regular schedulesb. operate on regular routesc. usually meant for a single shipperd. rates are publishede. very service oriented

29.The objectives of stockless purchasing include all of the following except:

a. lower inventory levelsb. Reduce administrative cost and

paperworkc. increase the number of suppliersd. Provide for timely delivery of material

directly to the User. e. standardize purchase items where

possible

29.The objectives of stockless purchasing include all of the following except:

a. lower inventory levelsb. Reduce administrative cost and

paperworkc. increase the number of suppliersd. Provide for timely delivery of material

directly to the User. e. standardize purchase items where

possible

30.Assume that the cost of the most efficient logistics system for a 98 percent service goal is $2 million higher than the existing system's cost. If for each dollar of additional sales, the company incurs 75 cents in out‑of‑pocket costs, what incremental sales volume will the company need to recover the increase in logistics costs?

a. $2 million b. 2 million units c. $8 million d. $4 million e. Can not be determined with the information

given

30.Assume that the cost of the most efficient logistics system for a 98 percent service goal is $2 million higher than the existing system's cost. If for each dollar of additional sales, the company incurs 75 cents in out‑of‑pocket costs, what incremental sales volume will the company need to recover the increase in logistics costs?

a. $2 million b. 2 million units c. $8 million d. $4 million e. Can not be determined with the information

given

31.Container ship capacity is most likely to be defined in terms of

a. Deadweight tons (DWT) b. Net registered tons (NRT) c. Bale cubic (BC) d. TEU’s

31.Container ship capacity is most likely to be defined in terms of

a. Deadweight tons (DWT) b. Net registered tons (NRT) c. Bale cubic (BC) d. TEU’s

32.Sinclair Machinery imported 300 engines from a manufacturer in France. The import duty paid was $1000. Finding no market for the engines, Sinclair re-exported the engines to Brazil and applied for a drawback. How much of the paid duty will Sinclair receive back?

a. $100b. $500c. $990d. none, duty paid cannot be refunded

32.Sinclair Machinery imported 300 engines from a manufacturer in France. The import duty paid was $1000. Finding no market for the engines, Sinclair re-exported the engines to Brazil and applied for a drawback. How much of the paid duty will Sinclair receive back?

a. $100b. $500c. $990d. none, duty paid cannot be refunded

33. According to Lardner's Law (also referred to as the law of squares in transportation and trade), if the transportation cost is cut in half the relevant market area is increased

a. 2 timesb. 4 timesc. .5 timesd. Stays the same

33. According to Lardner's Law (also referred to as the law of squares in transportation and trade), if the transportation cost is cut in half the relevant market area is increased

a. 2 timesb. 4 timesc. .5 timesd. Stays the same

34. Certain American ship owners may derive benefits of taxes, manning (i.e. officers and crew), and relaxed safety requirements by registering their ship in Panama instead of the U.S. By doing so, the ship flies the Panamanian flag. In this case, the Panamanian flag is called

a. a tax‑flag.b. a flag of convenience.c. an escape flag.d. a flag of evasion.

34. Certain American ship owners may derive benefits of taxes, manning (i.e. officers and crew), and relaxed safety requirements by registering their ship in Panama instead of the U.S. By doing so, the ship flies the Panamanian flag. In this case, the Panamanian flag is called

a. a tax‑flag.b. a flag of convenience.c. an escape flag.d. a flag of evasion.

35.Obsolescence, pilferage, and product damage would be examples of which component of inventory carrying costs?

a. capital costsb. inventory risk costsc. inventory service costsd. opportunity costse. storage space costs

35.Obsolescence, pilferage, and product damage would be examples of which component of inventory carrying costs?

a. capital costsb. inventory risk costsc. inventory service costsd. opportunity costse. storage space costs

36.Which global strategic channel intermediate acts as consolidator and dispenser of containers that originate at or are inbound to inland points?

a. RO‑ROb. NVOCCc. EOACCd. STB

36.Which global strategic channel intermediate acts as consolidator and dispenser of containers that originate at or are inbound to inland points?

a. RO‑ROb. NVOCCc. EOACCd. STB

37.(a) If a Shipper’s total product costs are $1000, and sells for $1500 at the market, and

(b) If a Carriers fixed costs are $100, and variable costs are $200, then the

Lower limit for Carrier’s zone of negotiation under excess capacity is:

a. $1500b. $1000c. $500d. $300e. $200

37.(a) If a Shipper’s total product costs are $1000, and sells for $1500 at the market, and

(b) If a Carriers fixed costs are $100, and variable costs are $200, then the

Lower limit for Carrier’s zone of negotiation under excess capacity is:

a. $1500b. $1000c. $500d. $300e. $200

38.Demand for an item increases 10 percent, and the value of each unit increases 10 percent. What is the effect on EOQ (assuming everything else remains the same)?

a. EOQ increases 10 percentb. EOQ increases 20 percentc. EOQ decreases 10 percentd. EOQ stays the same

38.Demand for an item increases 10 percent, and the value of each unit increases 10 percent. What is the effect on EOQ (assuming everything else remains the same)?

a. EOQ increases 10 percentb. EOQ increases 20 percentc. EOQ decreases 10 percentd. EOQ stays the same

39.Customer service involves maximizing ___________ and _________ utilities to the firm’s suppliers, intermediate customers, and final customers.

a. time, possessionb. possession, formc. form, placed. time, placee. place, possession

39.Customer service involves maximizing ___________ and _________ utilities to the firm’s suppliers, intermediate customers, and final customers.

a. time, possessionb. possession, formc. form, placed. time, placee. place, possession

40.The award managed by the US Department of Commerce which recognizes companies that have attained a high level of excellence arid total quality is the:

a. Deming Awardb. ISO 9000 Certificationc. Juran Medald. Malcolm Baldrige National Quality

Awarde. Presidential Citation of Merit

40.The award managed by the US Department of Commerce which recognizes companies that have attained a high level of excellence arid total quality is the:

a. Deming Awardb. ISO 9000 Certificationc. Juran Medald. Malcolm Baldrige National Quality

Awarde. Presidential Citation of Merit

41. DOT regulations require truck drivers to drive a maximum of 10 hours after 8 consecutive hours off duty. To maintain schedules, minimize transit time, and conform to regulations, carriers should appropriately do which of the following?

a. require drivers to provide log books at check points

b. operate relay terminalsc. install slow clocks in vehiclesd. use satellite communications to talk to

drivers

41. DOT regulations require truck drivers to drive a maximum of 10 hours after 8 consecutive hours off duty. To maintain schedules, minimize transit time, and conform to regulations, carriers should appropriately do which of the following?

a.require drivers to provide log books at check points

b.operate relay terminalsc.install slow clocks in vehiclesd.use satellite communications to talk to

drivers

42. The type of maritime bridge where a shipment has both a land leg and a sea leg, but has an inland destination or origin point is:

a. a macro bridgeb. a mini bridgec. a micro bridged. a portal bridge

42. The type of maritime bridge where a shipment has both a land leg and a sea leg, but has an inland destination or origin point is:

a. a macro bridgeb. a mini bridgec. a micro bridged. a portal bridge

43. A containerized shipment of French beauty products arrives at the port of Miami. The containers are off loaded onto rail cars for shipment to Orlando, Florida. This describes which type of maritime bridge?

a. microbridgeb. minibridgec. macrobridged. mainbridge

43. A containerized shipment of French beauty products arrives at the port of Miami. The containers are off loaded onto rail cars for shipment to Orlando, Florida. This describes which type of maritime bridge?

a. microbridgeb. minibridgec. macrobridged. mainbridge

44. An International intermodal service in which foreign cargo crosses a Country en route to another country (e.g., Europe to US via ocean, across US by rail, and US to Japan via ocean) is referred to as:

a. landbridgeb. microbridgec. minibridged. micro landbridgee. none of the above answers are correct

44. An International intermodal service in which foreign cargo crosses a Country en route to another country (e.g., Europe to US via ocean, across US by rail, and US to Japan via ocean) is referred to as:

a. landbridgeb. microbridgec. minibridged. micro landbridgee. none of the above answers are correct

45. Which type of maritime bridge involves one ocean leg and one land leg with the shipment moving between a U.S. port and a foreign port but passing through a different U.S. port?

a. a macro bridgeb. a mini bridgec. a micro bridged. a portal bridge

45. Which type of maritime bridge involves one ocean leg and one land leg with the shipment moving between a U.S. port and a foreign port but passing through a different U.S. port?

a. a macro bridgeb. a mini bridgec. a micro bridged. a portal bridge