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Exam 15: Purchasing Transportation Services

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Question 1

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There are numerous factors that are included in rate determination for a particular commodity. These factors include the following: Shipping weight per cubit foot.Liability for damage.Perishability.Liability for damage to other commodities being transported.Liability for spontaneous combustion or explosion.Susceptibility to theft.Value per pound in comparison with other articles.ase or difficulty in loading and unloading.xcessive weight.xcessive length.are or attention necessary in loading and transporting.Trade conditions.Value of service.ompetition with other commodities transported.Quantity offered as a single consignment.

A) True
B) False

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Question 2

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Government regulation has given carriers more pricing freedom; negotiating skills have become very important for both carriers and shippers.

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B) False

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Question 3

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There are several challenges that buyers face in order to transfer logistics activities to ___________. The decision must include all of the parties that will be affected by the _____________.

There is also strong rate competition between owner-operators engaged in exempt commodity movements and railroads. Most of the owner-operators compete on a ______ basis.

__________ are used to transport low-valued, nonperishable products such as oil, diesel fuel, jet fuel, kerosene, and natural gas.

General commodity carriers usually specialize in either truckload (TL) or less-than-truckload (LTL) operations. Truckload shipments are defined by the ICC as loads in excess of 10,000 pounds. Currently, there are more than 40,000 small truckload carriers. These companies have been typically _____________.

_________ means that the title to the merchandise passes at the time and place of pick up.

___________ involves facilitating the movements of raw materials and component parts from suppliers through the firm's manufacturing process to the ultimate customers.

The choice of transportation mode is the most important element in ________________.

In contrast, in long-haul volume movements of bulk commodities, ___________ are typically unable to quote ____________ rates.

Water carriers are an excellent transportation shipping mode for low-valued bulk commodities in large quantities. Speed is not a critical criterion for those raw materials.

____________ is often the most costly and time-consuming component of purchasing management.

The truck mode is used to transport a variety of perishable consumer goods, such as fresh meats, frozen meats, dairy products, baked goods, and beverages. The primary advantages of this mode are _______________.

eregulation has allowed the railroad carriers to integrate into ________________.

ach of the (transportation) modes has specific operating and cost characteristics and the buying professional must weigh them in selecting the most appropriate transportation mode. The most basic selection decision is the trade-off between _______________.

ompanies with a significant presence in the (air mode) market are Federal Express and all of the following with one exception. Which is the exception?

The majority of commodities shipped via _________ are semi-processed materials, fuel, oil, coal, chemicals, minerals, and petroleum products.

The __________ of transportation services is determined in two ways, depending on whether federal regulation applies.

Shipping documentation such as the ___________ must be prepared. This serves as the basic contract between the carrier and shipper and specifies the commodities and quantities shipped, routing, rates, and carrier liability.

In many cases, most Fortune 500 firms use a variety of transportation modes depending on their aggregate transportation needs. The "model split" is usually determined by cost pressures, the packaging, the final shipment destination, and competitive trucking firms.