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Assignment-4 (Due 2nd Dec 2017)

Assignment on Transportation:

Study the text in this folder and answer the following questions.

1. Seven economic drivers that influence transportation cost were described in

transportation text. Select a specific product and discuss how each factor will influence
determination of a freight rate.

2. Compare and contrast the transport principles of economy of scale and economy of
distance. How do they combine to create efficient transportation?

3. Identify basic modes of transportation, their costs, and their suitability for different types
of products.

4. Describe the factors driving transportation costs including distance, volume, density,
stow-ability, handling, liability, and market factors.

5. Summarize the key elements of transportation management including equipment

scheduling, load planning, routing, and carrier administration.

6. What is inter-modal transportation? How does it benefit supply chain transportation?

Part-B Select the most appropriate response to the following questions

1 Mode of transportation are typically evaluated on the basis of all of the following
criteria Except:
A. Accessibility
B. Perish-ability
C. Frequency
D. Capability
E. Dependability

2 The Danish-flagged Carsten Maersk can carry enough merchandise packed in

containers that when they are laid end to end, the containers would stretch 27 miles.
When it reaches its destination, the containers will be removed from the ship and
loaded onto truck or railcars. This is an example of:
A. Piggyback
B. Freight forwarding
C. Inter-modal transportation
D. An export agent
E. An efficient consumer delivery system

3 __________ involves combining and coordinating two or more modes of transportation

to take advantage of benefits offered by different types of carriers.
A. Inter-modal transportation
B. Physical distribution
C. Containerized movement
D. Efficient and effective transportation
E. Freight forwarding

4 __________ are the most common mode of shipping fresh flowers long distances.
A. Pipeline
B. Waterways
C. Motor vehicle
D. Airways
E. Railroads
5 Which is correct regarding tapering rates?
A. The principle is based on the carriers ability to spread certain fixed cost over a
greater number of miles
B. Transportation rates increase with distance directly in proportion to the
C. In a one-source, one-market situation, the impact of the tapering rate will be to
pull the location toward a point midway between the source and the market
D. All of the above

6 Which is correct regarding tapered rates?

A. Rates will taper with high value goods but not with low value goods
B. Rates will taper with low value goods but not with high value goods
C. Rates taper because the fixed costs associated with a shipment are spread out
as the distance of the shipment increases
D. Shorter shipment distances cost less per mile than longer shipment distances

7 Which is usually the most important determinant for selecting a particular carrier from
within one mode?
A. Transit time reliability
B. Equipment availability
C. Line haul services
D. Claims processing

8 The economy of distance principle states that the larger the distance, the less the
transportation costs per unit of distance
A. True
B. False

9 Railroads offer low cost for long hauls of large volumes, but they have accessibility
limitation and long transit time.
A. True
B. False