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1-Cheaper modes of transportation are preferred for products with a high-value t

ID: 381368 • Letter: 1

Question

1-Cheaper modes of transportation are preferred for products with a high-value to weight ratio, for which reducing transportation cost is important

A) True B) False

2-When making transportation decisions, a carrier goal is to minimize the total cost(transportation, inventory, information and facility) while providing an appropriate level of responsiveness to the customer.

        A) True B) False

3-Sourcing a product overseas may have lower product cost but will generally incur a higher inbound transportation cost.

  A) True B) False

4- A milk run is a route in which a truck either delivers product from a single supplier to multiple retailers or goes from multiple suppliers to a single retailer.

  A) True B) False

Explanation / Answer

Answer 1 True

Faster modes of transportation are preferred for products with a high value-to weight ratio, reducing inventories is important, whereas cheaper modes are preferred for products with a small value-to-weight ratio, for which reducing transportation cost is important.

Answer 2 False

Answer 3 True

Sourcing a product overseas may have lower product cost but will generally incur a higher inbound transportation cost.

Answer 4 True

A milk run is a route in which a truck either delivers product from a single supplier to multiple retailers or goes from multiple suppliers to a single retailer.