9

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  • 1/47 Questions

    Which of the following are secure sites within the U.S. where goods and materials can be assembled and exported without being levied domestic duties or excise taxes?

    • Global warehouses
    • Foreign-trade zones
    • Private warehouses
    • Public zones
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About This Quiz

Quiz 9 explores key concepts in logistics and supply chain management, assessing knowledge on the Square Root Rule, the role of logistics, foreign-trade zones, reverse logistics, and the impact of 3PL services. It is designed for learners to understand logistics dynamics and their economic impacts.

9 - Quiz

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  • 2. 

    Small firms with no internal logistics expertise and large firms with many sizeable and varied logistics needs can benefit greatly by using:

    • TOFC Service

    • 3PL Service

    • TSA Service

    • LTL Service

    Correct Answer
    A. 3PL Service
    Explanation
    Small firms with no internal logistics expertise and large firms with many sizeable and varied logistics needs can benefit greatly by using 3PL (Third-Party Logistics) Service. 3PL Service providers offer a wide range of logistics solutions, including transportation, warehousing, inventory management, and distribution. They have the expertise, resources, and network to handle complex logistics operations efficiently and cost-effectively. By outsourcing their logistics to a 3PL provider, small firms can focus on their core competencies, while large firms can streamline their logistics operations and reduce costs. 3PL Service is a flexible and scalable solution that can adapt to the specific needs of different firms, making it an ideal choice for both small and large companies.

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  • 3. 

    Reverse logistics refers to the movement, storage, and processing of:

    • Finished Goods

    • Electronic Equipments

    • Returned Goods

    • Manufacturing Supplies

    Correct Answer
    A. Returned Goods
    Explanation
    Reverse logistics refers to the process of managing the movement, storage, and processing of goods that have been returned by customers. This can include items that are defective, damaged, expired, or simply unwanted. The goal of reverse logistics is to efficiently handle these returned goods, whether that involves repairing, refurbishing, recycling, or disposing of them. By effectively managing returned goods, businesses can minimize their losses and potentially recapture value from these products.

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  • 4. 

    Which of the following does not play a significant role in the logistics function?

    • Warehousing

    • Manufacturing Cells

    • Customer Service

    • Transportation

    Correct Answer
    A. Manufacturing Cells
    Explanation
    Manufacturing cells do not play a significant role in the logistics function. Logistics primarily focuses on the movement and storage of goods from the point of origin to the point of consumption. Warehousing is an essential component as it involves the storage, handling, and distribution of goods. Transportation is crucial for physically moving the goods between different locations. Customer service is also important as it involves managing customer inquiries, complaints, and order fulfillment. However, manufacturing cells refer to a production method where similar machines and equipment are grouped together to produce a specific product or component, which is not directly related to the logistics function.

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  • 5. 

    Which of the following are intermodal transportation alternatives?

    • Truck trailer-on-flatcar

    • Roll-on-roll-off

    • Piggyback service

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The given answer, "All of the above," is correct because all the options listed - truck trailer-on-flatcar, roll-on-roll-off, and piggyback service - are examples of intermodal transportation alternatives. Intermodal transportation refers to the use of multiple modes of transportation, such as trucks, trains, and ships, to transport goods or passengers. In this case, all three options involve the combination of different modes of transportation to move cargo or vehicles efficiently and effectively.

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  • 6. 

    ___________________ are for-profit organizations that contract out or lease a wide range of light manufacturing, warehousing, and distribution services to other companies

    • Public warehouses

    • Private warehouses

    • Breakbulk warehouses

    • Consolidation warehouses

    Correct Answer
    A. Public warehouses
    Explanation
    Public warehouses are for-profit organizations that contract out or lease a wide range of light manufacturing, warehousing, and distribution services to other companies. These warehouses are open to the public and provide storage and handling services for a variety of products. They are often used by companies that do not have their own storage facilities or need additional space for their inventory. Public warehouses offer flexible storage options and can help businesses reduce costs and improve efficiency in their supply chain operations.

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  • 7. 

    Logistics affects the supply chain function by:

    • Creating the flow of goods between supply chain partners

    • Determining how deliveries can be made in a timely manner

    • Providing time and place utility

    • All of these choices are correct

    Correct Answer
    A. All of these choices are correct
    Explanation
    Logistics plays a crucial role in the supply chain function by facilitating the flow of goods between supply chain partners, ensuring the timely delivery of products, and providing time and place utility. By managing transportation, inventory, and warehousing, logistics ensures that products are available when and where they are needed, thus optimizing the efficiency and effectiveness of the supply chain. Therefore, all of the given choices are correct in terms of how logistics affects the supply chain function.

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  • 8. 

    The for-hire logistics expenditures in the U.S. has more than ___________ in the last thirty-one years?

    • Quadrulpled

    • Tripled

    • Doubled

    • None of these choices are correct

    Correct Answer
    A. Quadrulpled
    Explanation
    The correct answer is "Quadrupled." This means that the for-hire logistics expenditures in the U.S. have increased by four times in the last thirty-one years.

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  • 9. 

    The rule to estimate the effect of risk pooling is referred to as the __________.

    • Exponential Rule

    • Linear Rule

    • FOIL Rule

    • Square Root Rule

    Correct Answer
    A. Square Root Rule
    Explanation
    The square root rule is used to estimate the effect of risk pooling. It states that the standard deviation of the pooled distribution is equal to the square root of the sum of the variances of the individual distributions being pooled. This rule is commonly used in insurance and finance to calculate the overall risk of a portfolio or a group of assets. By pooling risks together, the overall risk is reduced, and the square root rule helps to quantify this reduction in risk.

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  • 10. 

    Which of the following modes of transportation should be used to haul large quantities of natural gas and oil from desolate areas to existing processing facilities hundreds of miles away?

    • Motor Carriers

    • Rail Carriers

    • Water Carriers

    • Pipeline Carriers

    Correct Answer
    A. Pipeline Carriers
    Explanation
    Pipeline carriers should be used to haul large quantities of natural gas and oil from desolate areas to existing processing facilities hundreds of miles away. This is because pipelines are the most efficient and cost-effective mode of transportation for such bulk commodities. They provide a continuous and reliable means of transportation, minimizing the need for multiple transfers and reducing the risk of spills or accidents. Additionally, pipelines have a higher capacity and can transport large volumes of oil and gas over long distances, making them the ideal choice for this type of transportation.

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  • 11. 

    Which of the following modes of cargo transport can be characterized as being the most inexpensive and very slow, yet good for transporting very heavy goods a long-distance?

    • Air Carriers

    • Rail Carriers

    • Water Carriers

    • Motor Carriers

    Correct Answer
    A. Water Carriers
    Explanation
    Water carriers can be characterized as the most inexpensive and very slow mode of cargo transport. They are good for transporting very heavy goods over long distances because water transportation has the advantage of being able to carry large quantities of cargo at once. Ships and barges can accommodate heavy goods such as machinery, raw materials, and bulk commodities. Although water transport may be slower compared to other modes like air or rail, it is cost-effective and suitable for transporting heavy goods over long distances.

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  • 12. 

    Reverse logistics can have a positive impact on the environment through activities such as?

    • Data warehousing

    • Reneging

    • Risk Pooling

    • Recycling

    Correct Answer
    A. Recycling
    Explanation
    Reverse logistics refers to the process of managing the flow of products from the point of consumption back to the point of origin. Recycling is a key activity in reverse logistics that involves collecting, sorting, and processing used products or materials to convert them into new products. By recycling, we can reduce the amount of waste sent to landfills, conserve natural resources, and minimize pollution caused by the production of new materials. Therefore, recycling as part of reverse logistics can have a positive impact on the environment by promoting sustainability and reducing the carbon footprint.

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  • 13. 

    Which of the following international intermediaries helps foreign buyers and sellers find each other and then handles all the shipping arrangements and documentation preparation?

    • Customs Broker

    • Foreign Freight Forwarder

    • Trading Company

    •  NVOCC

    Correct Answer
    A. Trading Company
    Explanation
    A trading company is an international intermediary that helps foreign buyers and sellers find each other and then handles all the shipping arrangements and documentation preparation. They act as a middleman, connecting buyers and sellers from different countries and facilitating the entire process of international trade. This includes negotiating contracts, arranging transportation, managing logistics, and handling all the necessary paperwork and documentation.

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  • 14. 

    When mistakes occur in the supply chain, which of the following things might happen?

    • More safety stock must be held

    • Cost may increase due to expedited deliveries

    • Customer service levels drop

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    When mistakes occur in the supply chain, several things might happen. First, more safety stock may need to be held to compensate for the errors and ensure that there is enough inventory available. Second, cost may increase due to expedited deliveries required to fix the mistakes and meet customer demands. Lastly, customer service levels may drop as a result of the errors, leading to delays and dissatisfaction. Therefore, all of the above options are possible outcomes when mistakes occur in the supply chain.

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  • 15. 

    When warehouses receive, break down, and repackage shipments, and then distribute components to a manufacturing location or finished products to customers by a distribution center this activity is referred to as:

    • Crossdocking

    • Transshipping

    • Piggy Backing

    • Customs Brokering

    Correct Answer
    A. Crossdocking
    Explanation
    Crossdocking refers to the process of receiving shipments in a warehouse, breaking them down, and repackaging them before distributing the components to a manufacturing location or finished products to customers through a distribution center. It involves minimal or no storage of goods and aims to streamline the supply chain by reducing handling and storage costs, improving efficiency, and speeding up the delivery process.

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  • 16. 

    Which of the following carriers is most favorable, but inflexible, when shipments are heavy and the distance for delivery is long?

    • Motor Carriers

    • Pipeline Carriers

    • Air Carriers

    • Rail Carriers

    Correct Answer
    A. Rail Carriers
    Explanation
    Rail carriers are the most favorable option when shipments are heavy and the distance for delivery is long. This is because rail transportation has a high capacity for carrying heavy loads over long distances. However, rail carriers are also known for being less flexible compared to other modes of transportation. They have fixed routes and schedules, making them less adaptable to changes in delivery requirements or timelines.

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  • 17. 

    In the text, Table 9.1 shows that for-hire logistics expenditures in the U.S., have _____________ in the past thirty-one years

    • Remained the same

    • Slowly declined

    • More than quadrulpled

    • Decreased for the first 10 years, then increased

    Correct Answer
    A. More than quadrulpled
    Explanation
    Table 9.1 in the text provides data on for-hire logistics expenditures in the U.S. over the past thirty-one years. The correct answer, "more than quadrupled," suggests that these expenditures have increased significantly during this time period. This means that the amount of money spent on for-hire logistics services has more than quadrupled compared to the initial amount.

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  • 18. 

    _______________ carry the majority of the world’s water-transported manufactured goods.

    • Supertankers

    • Containerships

    • Barges

    • None of the above

    Correct Answer
    A. Containerships
    Explanation
    Containerships are the correct answer because they are specifically designed to carry large quantities of manufactured goods across the world's waterways. These ships have a large number of standardized containers that can be easily loaded and unloaded, making them efficient for transporting goods. Supertankers, on the other hand, are designed for carrying liquid cargo such as oil, while barges are typically used for transporting bulk goods on inland waterways. Therefore, containerships are the most suitable option for carrying the majority of the world's water-transported manufactured goods.

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  • 19. 

    _______________ can have a positive impact on the environment through recycling, reusing materials and products, or refurbishing used products and reducing the environmental impact of certain modes of transportation used for returns.

    • Private Carriers

    • Reverse Logistics

    • Piggyback Services

    • Risk Pooling

    Correct Answer
    A. Reverse Logistics
    Explanation
    Reverse logistics refers to the process of managing the return of goods from the point of consumption to the point of origin. This involves activities such as recycling, reusing materials and products, refurbishing used products, and reducing the environmental impact of transportation used for returns. By implementing effective reverse logistics practices, businesses can minimize waste, conserve resources, and reduce their overall environmental impact.

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  • 20. 

    Which of the following was the first major transportation regulation in the U.S.?

    • Interstate Initiation Act

    • Motor Carrier Act

    • Interstate Commerce Act

    • Granger Laws

    Correct Answer
    A. Granger Laws
    Explanation
    The Granger Laws were a series of state laws passed in the late 1800s in response to public outcry over high railroad rates and discriminatory practices. These laws aimed to regulate railroad and grain elevator rates and ensure fair treatment for farmers. While they were not a federal regulation, the Granger Laws were significant as they represented the first major attempt to regulate transportation in the United States and set the stage for future federal regulation such as the Interstate Commerce Act.

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  • 21. 

    Which of the following is NOT a direct benefit from the adoption of NAFTA?

    • Foreign direct investment in Mexico are increasing

    • Reduction in illegal immigrants crossing the border from Mexico since NAFTA began

    • Regional trade has increased sharply over NAFTA's first two decades

    • Trade between U.S., Canada, and Mexico has increased

    Correct Answer
    A. Reduction in illegal immigrants crossing the border from Mexico since NAFTA began
    Explanation
    The reduction in illegal immigrants crossing the border from Mexico since NAFTA began is not a direct benefit from the adoption of NAFTA. NAFTA primarily focuses on promoting trade and economic integration between the United States, Canada, and Mexico. While increased trade and investment can have indirect effects on immigration patterns, the direct benefits of NAFTA are related to trade facilitation, market access, and economic growth.

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  • 22. 

    Which of the following was enacted to reduce and eliminate transportation regulations?

    • Granger Law

    • Trucking Industry Regulatory Reform Act

    • Reed Bullwinkle Act

    • Freight Forwarders Act

    Correct Answer
    A. Trucking Industry Regulatory Reform Act
    Explanation
    The Trucking Industry Regulatory Reform Act was enacted to reduce and eliminate transportation regulations. This act aimed to deregulate the trucking industry by removing restrictions on pricing, entry, and route selection for trucking companies. It aimed to promote competition and efficiency in the industry by allowing trucking companies more freedom in their operations. This act played a significant role in transforming the trucking industry and promoting economic growth.

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  • 23. 

    For integrated supply chains, logistics is considered

    • Not at all important

    • Somewhat important

    • Important

    • Critically important

    Correct Answer
    A. Critically important
    Explanation
    In integrated supply chains, logistics plays a crucial role in ensuring the smooth flow of goods and information from suppliers to customers. It involves managing transportation, warehousing, inventory, and distribution activities. Without efficient logistics, the entire supply chain can be disrupted, leading to delays, increased costs, and customer dissatisfaction. Therefore, logistics is considered critically important in integrated supply chains to optimize operations, reduce lead times, and enhance overall customer satisfaction.

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  • 24. 

    What does the term “Zombie Inventory” refer to?

    • Items that show up on the books, but are not on the shelf

    • Unsold products that get packaged and shipped with sold goods

    • Product returns that sit unsold in storerooms

    • Extra items in inventory to help reduce stockouts

    Correct Answer
    A. Product returns that sit unsold in storerooms
    Explanation
    Zombie Inventory refers to product returns that sit unsold in storerooms. This means that these returned products are not being resold or put back into the inventory for future sales. Instead, they are kept in storage, taking up space and tying up capital that could be used for other purposes. This can lead to financial losses for the company and inefficient use of resources.

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  • 25. 

    Returns management is also known as _______.

    • Reverse logistics

    • Backward logistics

    • Inverted logistics

    • Waste reduction

    Correct Answer
    A. Reverse logistics
    Explanation
    Returns management refers to the process of handling and managing product returns from customers. This involves activities such as receiving returned products, inspecting them, determining the reason for return, and deciding on the appropriate action to be taken, such as repair, replacement, or refund. Reverse logistics is the term used to describe this process, as it involves the flow of products and materials in the opposite direction of the typical supply chain. It focuses on efficiently managing the return of products to minimize costs and maximize value.

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  • 26. 

    The acts of receiving shipments, breaking down shipments, repackaging shipments, and distributing components to a manufacturing location or finished products to customers by a distribution center is referred to as:

    • Piggy backing

    • Risk pooling

    • Crossdocking

    • Customs Brokering

    Correct Answer
    A. Crossdocking
    Explanation
    Crossdocking refers to the process of receiving shipments and immediately transferring them to outbound transportation without the need for long-term storage or inventory holding. It involves breaking down shipments, repackaging them if necessary, and distributing the components or finished products directly to their destination. This method reduces handling and storage costs, improves efficiency, and allows for faster delivery to customers or manufacturing locations.

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  • 27. 

    The first major transportation regulation in the U.S. was which of the following:

    • Interstate commerce act

    • Granger laws

    • Motor carrier act

    • Interstate initiation act

    Correct Answer
    A. Granger laws
    Explanation
    The Granger laws were the first major transportation regulations in the U.S. These laws were enacted in the late 19th century in response to public concerns about the practices of railroads. The laws aimed to regulate railroad rates and prevent discrimination against farmers and small businesses. They established state-level regulatory commissions to oversee railroad operations and ensure fair practices. The Granger laws marked an important step in the development of transportation regulation in the U.S. and set a precedent for future legislation, such as the Interstate Commerce Act.

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  • 28. 

    Which of the following would be considered an act of deregulation?

    • Reed Bullwinkle act - legalized rate bureaus or conferences

    • Granger law - Established maximum rates, prohibited discrimination, and forbade mergers for railroads

    • Trucking Industry Regulatory Reform Act - Motor carriers freed from filing rates with the Interstate Commerce Commission

    • Freight Forwarders Act - Allowed Interstate Commerce Commission control over freight forwarders; controlled entry, rates, and services

    Correct Answer
    A. Trucking Industry Regulatory Reform Act - Motor carriers freed from filing rates with the Interstate Commerce Commission
    Explanation
    The Trucking Industry Regulatory Reform Act is considered an act of deregulation because it freed motor carriers from the requirement of filing rates with the Interstate Commerce Commission. Deregulation refers to the reduction or removal of government regulations and restrictions on industries or businesses. In this case, by eliminating the need to file rates, the act reduced government control and allowed the trucking industry to operate with more freedom and flexibility in setting their rates.

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  • 29. 

    Which of the following legislative acts is NOT in support of transportation deregulation?

    • Railroad Revitalization and Regulatory Reform Act

    • Staggers Rail Act

    • FAA Authorization Act

    • Reed-Bulwinkle Act

    Correct Answer
    A. Staggers Rail Act
    Explanation
    The Staggers Rail Act is not in support of transportation deregulation. This act, passed in 1980, actually supported the deregulation of the railroad industry in the United States. It aimed to increase competition and efficiency in the rail sector by allowing railroads more freedom in setting their own rates and negotiating contracts. This act was a significant step towards deregulation in the transportation industry, unlike the other acts listed which may have had different objectives or impacts.

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  • 30. 

    Due to the success of NAFTA, the U.S________________.

    • Has decided to extend the agreement until 2025

    • Has free trade agreements in 20 countries

    • Both A & B

    • None of the above

    Correct Answer
    A. Has free trade agreements in 20 countries
    Explanation
    The correct answer is "Both A & B". This is because due to the success of NAFTA, the U.S has not only decided to extend the agreement until 2025 but also has free trade agreements in 20 countries.

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  • 31. 

    Which of the following is NOT consistent with a decentralized warehousing system?

    • Higher safety stocks required

    • Shorter lead times

    • Lower transportation fees

    • None of the above

    Correct Answer
    A. None of the above
    Explanation
    A decentralized warehousing system involves distributing inventory across multiple locations, which can result in several benefits such as shorter lead times and lower transportation fees. Additionally, by having inventory spread out, the need for higher safety stocks is reduced as there is less risk of stockouts. Therefore, all the options listed are consistent with a decentralized warehousing system, and none of them are inconsistent.

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  • 32. 

    In the U.S., which of the five basic modes of transportation is responsible for the largest volume (in tonnage) of domestic freight hauled?

    • Rail Carriers

    • Pipeline Carriers

    • Air Carriers

    • Motor Carriers

    Correct Answer
    A. Motor Carriers
    Explanation
    Motor carriers are responsible for the largest volume of domestic freight hauled in the U.S. This is because motor carriers, such as trucks and vans, are able to transport goods to various locations efficiently and effectively. They have a wide reach and can access both urban and rural areas, making them a popular choice for transporting goods across the country. Additionally, motor carriers offer flexibility in terms of delivery speed and can handle a wide range of cargo types, further contributing to their high volume of freight haulage.

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  • 33. 

    ________________ are the most flexible mode of transportation and account for 70 percent of all the freight tonnage moved in the U.S.

    • Water carriers

    • Rail carriers

    • Air carriers

    • Motor carriers

    Correct Answer
    A. Motor carriers
    Explanation
    Motor carriers are the most flexible mode of transportation and account for 70 percent of all the freight tonnage moved in the U.S. This is because motor carriers, such as trucks and vans, have the ability to transport goods to various locations, including remote areas that may not be accessible by other modes of transportation. They also offer door-to-door delivery, making them convenient for businesses and consumers. Additionally, motor carriers provide a cost-effective option for transporting goods over short to medium distances, making them a popular choice for freight transportation.

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  • 34. 

    Lean warehousing may involve all of the following capabilities EXCEPT:

    • A tendency to be green

    • Greater emphasis on crossdocking

    • Reduced lot sizes and shipping quantities

    • Decreased Automation

    Correct Answer
    A. Decreased Automation
    Explanation
    Lean warehousing focuses on increasing efficiency and reducing waste in the warehouse operations. It involves practices such as reducing inventory, optimizing layout, and improving processes. Decreased automation goes against the principles of lean warehousing as automation can help in improving efficiency and reducing errors. Therefore, decreased automation is not a capability associated with lean warehousing.

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  • 35. 

    It is argued that transportation deregulation is good because:

    • Both "It ensures adequate transportation service throughout the country" and "It allows prices to adjust as supply, demand, and negotiations dictate"

    • It allows prices to adjust as supply, demand, and negotiations dictat

    • It ensures adequate transportation service throughout the country

    • None of these choices are correct

    Correct Answer
    A. It allows prices to adjust as supply, demand, and negotiations dictat
    Explanation
    Transportation deregulation allows prices to adjust as supply, demand, and negotiations dictate. This means that in a deregulated market, transportation companies can set their prices based on the current market conditions, rather than being restricted by government regulations. This flexibility allows prices to be more responsive to changes in supply and demand, ensuring a more efficient allocation of resources. Additionally, deregulation promotes competition among transportation providers, which can lead to improved service quality and innovation in the industry.

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  • 36. 

    A ___________________ consolidates large numbers of small shipments to fill entire truck trailers or rail cars to achieve truckload or carload transportation rates

    • Consolidation forwarder

    • Freight forwarder

    • Transportation broker

    • Load broker

    Correct Answer
    A. Freight forwarder
    Explanation
    A freight forwarder is a company that consolidates large numbers of small shipments to fill entire truck trailers or rail cars in order to achieve truckload or carload transportation rates. They handle the logistics of transporting goods from one place to another, coordinating shipments, and ensuring that they reach their destination in a timely and cost-effective manner. Freight forwarders play a crucial role in optimizing transportation costs and streamlining the shipping process for businesses.

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  • 37. 

    Foreign-trade zones are:

    • Secure sites within the U.S. where goods and materials can be assembled and exported without being levied domestic duties or excise taxes

    • Secure sites in foreign countries where goods wait for clearance by importing country

    • Markets in the U.S. where foreign countries set up and sell products

    • Bodies of water where cargo ships are allowed to dock to deliver imported goods

    Correct Answer
    A. Secure sites within the U.S. where goods and materials can be assembled and exported without being levied domestic duties or excise taxes
    Explanation
    Foreign-trade zones are secure sites within the U.S. where goods and materials can be assembled and exported without being levied domestic duties or excise taxes. This means that businesses can bring in foreign goods, store them in these zones, and then assemble or manufacture them before exporting them back out of the country. By doing this, businesses can take advantage of cost savings and efficiencies in the production process, as they are not subject to the usual customs duties and taxes. These zones promote international trade and attract foreign investment, benefiting both the local economy and the businesses involved.

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  • 38. 

    Which of the following international intermediaries move global shipments through customs for companies and handle the documentation required to accompany the shipments?

    • Foreign Freight Forwarder

    • Customs Broker

    • NVOCC

    • Customs Trade Partnership

    Correct Answer
    A. Customs Broker
    Explanation
    A customs broker is an international intermediary that helps companies move global shipments through customs and handles the necessary documentation for the shipments. They have expertise in customs regulations and procedures, ensuring that the shipments comply with all legal requirements. Customs brokers facilitate the clearance process, including filing the necessary paperwork, paying duties and taxes, and coordinating with customs authorities. They play a crucial role in ensuring smooth and efficient movement of goods across international borders.

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  • 39. 

    Which of the following is a direct benefit from the adoption of NAFTA?

    • A reduction in illegal immigrants crossing the border from Mexico

    • An increase in manufacturing job opportunities in the U.S.

    • An increase in trade between U.S., Canada, and Mexico

    • An increase in trade between U.S. and China

    Correct Answer
    A. An increase in trade between U.S., Canada, and Mexico
    Explanation
    The adoption of NAFTA led to an increase in trade between the U.S., Canada, and Mexico. NAFTA eliminated most tariffs and trade barriers between the three countries, promoting the flow of goods and services across borders. This increased trade benefited all three countries by creating new market opportunities, stimulating economic growth, and enhancing competitiveness.

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  • 40. 

    What type of firm would be most interested in using a third-party logistics service?

    • Small firm with no logistics expertise

    • Large integrated global manufacturing company

    • A for-hire transportation company

    • A freight forwarder

    Correct Answer
    A. Small firm with no logistics expertise
    Explanation
    A small firm with no logistics expertise would be most interested in using a third-party logistics service because they lack the knowledge and resources to efficiently handle their own logistics operations. By outsourcing their logistics to a third-party service provider, they can benefit from the expertise and infrastructure of the provider, allowing them to focus on their core business activities. This would enable them to save time, reduce costs, and improve their overall logistics efficiency.

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  • 41. 

    The following are all examples of lean warehousing capabilities EXCEPT

    • Decreased assembly operations

    • Greater emphasis on crossdocking

    • Reduced lot sizes and shipping quantities

    • Increased automation

    Correct Answer
    A. Decreased assembly operations
    Explanation
    Lean warehousing focuses on reducing waste and improving efficiency in the warehouse operations. Decreased assembly operations would not align with lean principles as it involves additional steps and processes that can lead to waste and inefficiency. The other options, such as greater emphasis on crossdocking, reduced lot sizes and shipping quantities, and increased automation, are all examples of lean warehousing capabilities as they aim to streamline operations, reduce inventory, and improve overall efficiency.

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  • 42. 

    Which of the following can aggregate cargo and arrange for the domestic or international shipment of members' cargo at favorable volume rates?

    • Transportation Broker

    • Freight Forwarder

    • Shippers' Associations

    • Integrated Logistics Service Provider

    Correct Answer
    A. Shippers' Associations
    Explanation
    Shippers' Associations can aggregate cargo and arrange for the domestic or international shipment of members' cargo at favorable volume rates. Shippers' Associations are organizations formed by a group of shippers to collectively negotiate and secure transportation services at discounted rates. They leverage the combined volume of their members' cargo to negotiate better rates with carriers and other service providers. By pooling their resources and negotiating power, Shippers' Associations can provide cost-effective shipping solutions for their members.

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  • 43. 

    Intermodal marketing companies (IMCs) are companies that act as intermediaries between intermodal

    • Trucking companies

    • Railroad companies

    • Waste management companies

    • Warehouse management companies

    Correct Answer
    A. Railroad companies
    Explanation
    Intermodal marketing companies (IMCs) are companies that act as intermediaries between different modes of transportation, facilitating the movement of goods from one mode to another. In this case, the correct answer is "Railroad companies" because IMCs work with railroad companies to coordinate the transportation of goods by rail. They may handle tasks such as booking rail shipments, arranging for pick-up and delivery, and managing documentation and logistics. IMCs play a crucial role in ensuring the efficient and seamless movement of goods between different transportation modes, including railroads.

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  • 44. 

    It is argued that transportation deregulation is good because:

    • It encourages competition

    • It ensures adequate transportation service throughout the country

    • It protects consumers in terms of monopoly pricing

    • All of the above

    Correct Answer
    A. It encourages competition
    Explanation
    Transportation deregulation is argued to be good because it encourages competition. When regulations are lifted, it allows for more companies to enter the market and compete with each other. This competition can lead to lower prices, improved services, and increased innovation. By encouraging competition, transportation deregulation can benefit both businesses and consumers.

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  • 45. 

    A current warehouse system has five warehouses with 4,000 units at each warehouse. The company desires to change to three warehouses to become more centralized and keep the same customer service levels. Determine the average warehouse inventory levels, using the square root rule. (Choose the closest answer.)

    • 6,667

    • 11,619

    • 15,492

    • 25.820

    Correct Answer
    A. 15,492
    Explanation
    The square root rule is used to estimate the average inventory level in each warehouse when the number of warehouses is changed. According to the rule, the average inventory level in each warehouse is equal to the square root of the total inventory divided by the number of warehouses. In this case, the total inventory is 5 warehouses multiplied by 4,000 units, which equals 20,000 units. Dividing this by the desired number of warehouses, 3, gives an average inventory level of approximately 6,667 units per warehouse. Therefore, the closest answer is 6,667.

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  • 46. 

    A product positioned strategy:

    • Places warehouses close to customers

    • Places warehouses midway between the sources of supply and the customers

    • Places warehouses close to the sources of supply

    • None of the above

    Correct Answer
    A. Places warehouses close to the sources of supply
    Explanation
    A product positioned strategy places warehouses close to the sources of supply. This allows for efficient and cost-effective distribution of the product, as it reduces transportation costs and time. By having warehouses located near the sources of supply, the company can easily access and replenish their inventory, ensuring a steady and reliable supply chain. This strategy also enables the company to quickly respond to changes in demand and minimize stockouts. Overall, placing warehouses close to the sources of supply helps optimize the distribution process and improve customer satisfaction.

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  • 47. 

    Which of the following marked the end of the initial push by Congress to deregulate the entire U.S. transportation industry?

    • The granger laws

    • The transportation act of 1920

    • The shipping act of 1984

    • The interstate commerce act of 2013

    Correct Answer
    A. The shipping act of 1984
    Explanation
    The shipping act of 1984 marked the end of the initial push by Congress to deregulate the entire U.S. transportation industry. This act was passed to regulate the ocean shipping industry and promote fair competition. It aimed to prevent unfair and anti-competitive practices in the industry, such as price fixing and discriminatory treatment. By implementing regulations, the act signaled a shift away from the previous push for complete deregulation, indicating that some level of government oversight was necessary to ensure fair and competitive practices in the transportation industry.

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Quiz Review Timeline (Updated): Mar 21, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

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  • Mar 21, 2023
    Quiz Edited by
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  • Dec 09, 2018
    Quiz Created by
    Antwonallday18
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