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14. In addition to cost, which of the following is a key factor to consider in t

ID: 418634 • Letter: 1

Question

14. In addition to cost, which of the following is a key factor to consider in transportation mode decisions? A. Performance against promised delivery times. B. Access to the mode, from both the supplier and customer perspectives C. Special handling requirements. D. All of the above. 15. The chief advantage of shipping by truck is A. lower cost. B. the ability to consolidate shipments. C. location flexibility. D. the ability to ship less-than-truckload amounts. 16. Which of the following transportation modes has the lowest cost per ton? A. Truck B. Rail. C. Pipeline. D. Multiple mode. 17. Comparing warehouses and distribution centers, which of the following is true? A Warehouses that ship directly to retail stores are called distribution centers B. Distribution centers place more emphasis on fast transfer of material than warehouses C. Distribution centers place more emphasis on maintaining minimum inventories than warehouses. D. All of the above are true.

Explanation / Answer

14 D – All of the Above – There are several factors to be consider for the transportation other than cost, prioritizing the needs, understanding the shipment to be deliver. Time is most important factor as if the time crosses, even if the cost is lower, the production would delay which may bring unavoidable loss to the organization. Similarity it should be accessible to both customer and firm to coordinate and special handling requirement as per the shipment type.

15. – C- location flexibility – Above all, location flexibility is the best option as it provides quick and scheduled delivery to local, cross border, door to door even in rural areas, one of the most economical transport mode considered by the businesses.

16. D. Multiple mode – Selecting the best mode depends on type of shipment and time limit. Therefore, multiple mode as per type of delivery would be the best and cost-effective mode.

17. D- All Above is true – warehouse is something that keeps the goods for inventory and transfer the goods to distribution center for further processing and therefore maintain the less inventory as the goods when are ready to process for sales are being transferred to distribution center for quick processing.

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