Transportation & Distribution Management

Final Examination Questions

1ST Semester 2018

SECTION A

(Multiple Choice Questions)

Candidates should read each question carefully and circle the correct answer. One
(1) mark is allotted for each question, DO ALL.

1) Which of the following statements is true?

a) Transportation is the creation of time and place utilities

b) Reduction in transportation cost will discourage market areas to purchase from
distant suppliers
c) Efficient transportation system discourage large scale production
d) Transportation systems do not impact the economic value of goods

2) Which of the following does NOT describe the passenger demand characteristics?

a) Destination
b) Ability to perform special service requirement
c) Complaints and experiences
d) Cost

3) Which of the following is NOT a service component of freight demand?

a) Accessibility
b) Role of the travel agent
c) Transit Time
d) Security

4) Which of the following does NOT accurately describe demand for freight transportation
in the aggregate?

a) Price elastic
b) Price inelasticity
c) Derived Demand
d) None of the above

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5) Transport supply is the?

a) Capacity of transportation infrastructure and freight

b) Capacity of transportation freight and modes
c) Capacity of transportation infrastructures and modes
d) None of the above

6) The transport supply for road transportation is often dependent on the following
variables?

a) Capacity of terminal and vehicles

b) Capacity of the route and vehicles
c) Capacity of terminal and route
d) All of the above

7) The fastest means of transport is?

a) Railway
b) Roadway
c) Waterway
d) Airway

8) Which of the following rights-of-way describe?

a) The equipment the carrier uses

b) That which a carrier’s equipment uses to provide movement
c) The type of vehicle used by the carrier
d) All of the above

9) The cost structure of the motor carrier industry consists of?

a) Low levels of fixed costs and relatively high variable costs

b) Low levels of fixed and relatively low variable costs
c) High levels of variable costs and relatively high fixed costs
d) None of the above

10) Which of the following is NOT a requirement for the LTL segment of the motor carriers
industry?

a) Network of terminal
b) Consolidation of freight
c) Maintenance of rights-of-way
d) All of the above

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11) The Peddle Run in the motor carriers industry’s PUD terminal consists of?

a) Stem runs and peddle time

b) Peddle runs and stem time
c) Stem time and peddle time
d) Peddle runs and stem runs

12) PUD terminals are called?

a) Package underlining terminals

b)End-of-line terminals
c) Point of sale terminal
d) Spatial distribution terminal

13) Which of the following is NOT correct of the rail industry?

a) Constrained by fixed right of ways

b) Primary transports large quantities of heavyweight, low value commodities
c) In the short run, consists of a large proportion of variable costs rather than fixed
costs.
d) Small number of very large railroads

14) Which of the following is NOT a service advantage of the pipelines industry?

a) Good loss and damage record

b)Completeness of service
c) low rates
d) Free warehousing storage

15) A 3PL firm performs activities like?

a) Transportation
b) Security
c) Product Development
d) Human resources

16) Multimodal transport system includes all but?

a) Piggyback
b) Land bridge
c) Seaport to seaport
d) At least two modes of transport

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17) Cold chain logistics is?

a) Movement of freight of all kind along the supply chain

b) Storage of freight in reefers containers only along the supply chain
c) Controlled temperature movement of freight along the supply chain
d) None of the above

18) Last mile logistics is described as?

a) The least expensive of the cost within the supply chain

b)The most expensive of the cost within the supply chain
c) Transhipment part of the supply chain
d) the terminal service of the supply chain

19) What type of network does a hub and spoke network replace?

a) Point-to-point multi-stop network

b)Point-to-point inter-terminal network
c) Multi-stop unimodal network
d) Multi-transhipment network

20) Transportation regulations can protect the environment by:

a) Carefully selecting the major players in each sector

b) Promoting transportation systems that minimize congestion and pollution.
c) Determining which mode of transport is most suitable for the shipper
d) Making intermodal services mandatory where it is determined to be more efficient

21) Which of the following maintains right-of-way?

a) Water carrier
b) Air carrier
c) Motor carrier
d) None of the above

22) Which of the following is not a component of 3PL

a) Distribution
b) Transportation
c) Information flows
d) Recycling

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23) Using landmass as a link in a transport chain involving a foreign origin and a
destination at the end of the landmass
a) Mini land bridge
b) Reverse land bridge
c) Land bridge
d) Micro land bridge

24) All are benefits of the JIT EXCEPT

a) Decrease set up time
b) Maximize storage space
c) Increased emphasis on supplier relationship
d) The flow of goods from warehouse to shelves improves

25) The amount of traffic that circulates on a link between two nodes and the amount of
traffic going through a node is known as the:
a) Link
b) Hub
c) Feeder
d) Flow

26) The specific purpose of transportability is to

a) Fulfill a tariffs for mobility
b) Fulfill a borders for mobility
c) Fulfill a supply of mobility
d) Fulfill a demand for mobility

SECTION B
(Short Answers)

1. The demand for freight transportation in the aggregate is inelastic. Explain two
reasons for this.

2. List five advantages of the pipelines.

3. Transportation is a vital economic activity of business; briefly discuss

4. Outline four challenges to logistics and elaborate on any two.

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5. List five types of risks associated with the supply chain

6. Name 5 types of freight cars used the railway industry and the commodity they
carry

7. Explain why the water carriers cost structure consists of low fixed costs and high
variable costs

8. Define the concept of third party logistics.

9. Air carriers are said to transport emergency goods, explain.

10. Distinguish between class and commodity rates

SECTION C
(Essay Questions)
40 Marks

1. Compare and contrast the motor carrier and the pipeline industries in relation to
the number of carriers, market structure in terms of the commodity hauled and the
cost structure

2. Discuss the advantages and disadvantages of railroads?

3. Transportation is an enabler of both social and economic activities and a facilitator

of international trade. Discuss, taking into consideration both the positive and
negative impacts.

4. List four transportation infrastructure and discuss how transportation

infrastructure can transform an economy

5. Discuss the factors that can affect the supply and demand of transportation

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