Business Logistics
Textbook Exam Questions
Course Introduction
Business Logistics explores the principles, strategies, and practices essential to the effective management of the flow of goods, services, and information within and across organizations. The course examines the key components of logistics, including inventory management, transportation, warehousing, procurement, and distribution, all with a focus on optimizing supply chain performance and customer satisfaction. Through real-world case studies and practical applications, students learn how technology, globalization, and sustainability influence logistics operations and decision-making. The course equips learners with analytical tools and problem-solving skills critical for navigating today's complex and dynamic business environments.
Recommended Textbook
Transportation A Supply Chain Perspective 7th Edition by John J. Coyle
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14 Chapters
548 Verified Questions
548 Flashcards
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Chapter 1: Transportation: Critical Link in the Supply Chain
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36 Flashcards
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Sample Questions
Q1) Explain the difficulties associated with heterogeneous nature of the transportation demand unit.
Answer: Transportation is considered to have a heterogeneous unit of measurement. Meaning the same unit of demand could have different costs and different structure. For instance 500 passenger miles in an automobile could be 1 person going 500 miles,or 500 people going 1 mile. Additionally it could be 1 person going 500 miles at 30 miles an hour or 60 miles an hour. For transportation weight there is a similar issue. 10,000 ton miles could be 1 ton going 10,000 miles or 10,000 tons going 1 mile. These measuring units do not reflect the over all structure and cost involved with transportation.
Q2) Which mode of transportation has had the greatest impact on the location of major cities?
A) Motor
B) Water
C) Rail
D) Pipeline
Answer: B
Q3) What invention has led to the growth of suburban areas?
Answer: The automobile and roadway infrastructure.
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Chapter 2: Transportation: The Critical Link in the Economy
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Sample Questions
Q1) Explain place utility.
Answer: Place utility refers to the value of an article based upon its location. For example a bottle of water is worth about a dollar if you are standing next to a machine that sells water for a dollar. But how much is a bottle of water worth if you are out of water and in the middle of a hot desert? The same bottle has different value depending on the place. The more efficient a transportation system the lower the landed cost associated with a product and either the lower price it can be sold for or the greater the profit.
Q2) On a per capita basis what commodity has the highest demand based on weight?
A) meat
B) beverages
C) fruit
D) vegetables
Answer: D
Q3) What factors,other than economic factors,has shaped the American transportation system?
Answer: Political and military factors have also shaped the system.
Q4) Transportation provides what critical link in the economy?
Answer: Transportation provides for the link between producers and consumers.
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Page 4
Chapter 3: Transportation Regulation and Public Policy
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Sample Questions
Q1) What the primary mission of the Federal Motor Carrier Safety Administration?
Answer: The Federal Motor Carrier Safety Administration is a non-economic regulatory body whose main purpose is truck safety.
Q2) Some railroads have benefited from:
A) imposition of federal safety regulations relieving the carrier of this task
B) subsidies to operate abandoned rail liens the states and others continue to operate
C) the government operated research facility at Pueblo, Colorado
D) the new hours of service for truck drivers which reduced their productivity
Answer: B
Q3) What is the formal method used by Congress to influence national transportation?
A) congressional committees
B) appointment of the heads of the STB and FMC
C) formulating laws
D) standing committees
Answer: C
Q4) What is "per se" violation under Anti-trust law?
Answer: A per se violation is a type of violation is illegal,regardless if any economic harm is done to competitors or other parties.
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Page 5
Chapter 4: Costing and Pricing in Transportation
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Sample Questions
Q1) A profit-maximizing oriented carrier will not set a price in the long-run that would: A) reduce variable costs.
B) increase fixed costs.
C) increase customer satisfaction with services rendered.
D) prohibit the movement of freight or passengers.
Q2) What is the current status of rates under deregulation?
Q3) What are some of the problems which the use of Common Costs raises for Cost of Service Pricing,particularly the Average Cost approach?
A) Rates based upon average or fully allocated cost makes it necessary to apportion common costs by some arbitrary means.
B) Motor carriers are structured such as to make allocation extremely difficult.
C) Rail carriers have difficulty defining their common costs as they have wide spread geographic operations
D) All transport firms have significant difficulty with cost concepts due the very nature of their operations
Q4) What is meant by stowability and handling?
Q5) Define and discuss Value of Service Pricing.
Q6) Local rates are:
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Chapter 5: Motor Carriers
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Sample Questions
Q1) Define whether a motor carrier's costs are more fixed or variable.Explain your answer.
Q2) The requirements for a truck driver's license are defined by:
A) Federal Motor Carrier Safety Administration
B) National Highway Traffic Safety Board
C) Federal Highway Administration
D) The driver's home state
Q3) There are three types of terminals which are used by a trucking firm.Define and discuss each type and indicate if they are unique to any one type of trucking firm.
Q4) What do the users of truck service benefit from?
A) lower inventory levels due to smaller shipments that other modes
B) trailers come in a variety of configurations which fit to most types of freight
C) the fact that drivers will load and unload shipments
D) are the largest of the four modes
Q5) Do motor carriers experience economies of scale?
Q6) What mode or segment of a mode generates the most severe competition for the for hire carriers?
Q7) Why are there so many motor carriers,particularly in the Truck Load sector?
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Chapter 6: Railroads
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Sample Questions
Q1) Briefly explain the factors that led to the erosion of Rail dominance in 1920 and 1930.
Q2) Standard track guage is defined as?
Q3) Railroads are:
A) more energy efficient than most other modes
B) more likely to haul energy producing materials than other modes
C) not as energy efficient as most other modes
D) buying more energy efficient locomotives
Q4) The basic unit of measurement for railroad freight handling is known as the:
A) unit load.
B) carload
C) freight load.
D) capacity load.
Q5) What was the purpose of the legislation which created Amtrak?
A) It relived railroads from the responsibility of providing passenger service
B) It allowed the government to provide service without concern for profit
C) It allowed the states to take over commuter service
D) It allowed the railroads to get rid of track that was only used by passenger trains
Q6) What are the three major classifications of labor on railroads?
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Chapter 7: Airlines
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Sample Questions
Q1) If aviation fuel is at $2.60 a gallon,what is the price of fuel consumed per hour on a B747?
A) $2,000
B) $6,822
C) $7,163
D) $8,869
Q2) What is the percentage of revenue generated by the top 10 air carriers?
A) 75 percent
B) 82 percent
C) 91 percent
D) 96 percent
Q3) The airlines utilize technology to offer faster and more efficient service for their customers.One application of technology,developed by the airlines,is a paperless system called the Fast Flow Program.What is the Fast Flow Program designed to do?
A) speed aircraft takeoff and departures from congested airports
B) speed the processing of international passengers into the United States
C) speed the processing of air freight cargo through customs processing
D) speed the handling of passenger baggage
Q4) Give an example of emergency value.
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Chapter 8: Water Carriers and Pipelines
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Sample Questions
Q1) Since pipelines transport liquids,how do they keep the various liquids from mixing together?
What happens in they do mix?
Q2) The pipeline mode of transportation has a small number of very large carriers.What are the reasons for this small number of carriers?
Q3) Which best describes the domestic water carrier industry?
A) a limited number of small firms
B) large businesses with some offshore ownership
C) the carriers that report to the Surface Transportation Board's water section
D) the regulated carriers account for approximately one-fourth of the industry's total carriers
Q4) Why are water terminals provided by the public and operated by local government agencies?
Q5) How much has operating revenue for natural gas pipelines increased between 2000 and 2005?
Q6) Define,describe and discuss the nature of intramodal and intermodal competition for pipelines.
Q7) Discuss the cost structure of the water carrier mode and be sure to include fixed versus variable costs.
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Chapter 9: Transportation Risk Management
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Sample Questions
Q1) The container security initiative (CSI)was created to:
Q2) Define disruption and risk in general terms and in terms of transportation
Q3) Supply chain disruption can result in:
A) Stock price increase
B) Lower operating performance
C) Inventory decrease
D) Higher return on assets
Q4) Which of the following is not a common point of exposure for a potential security breach?
A) Lax security processes
B) Unprotected transfer facilities
C) Data encryption
D) Shipment control failures
Q5) What is the objective of risk assessment?
Q6) Risk management is defined as:
Q7) Which of the following is a type of product loss?
A) Pilferage
B) Damage
C) Climate control failure
D) Labor disruption
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Chapter 10: Global Transportation Planning
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Sample Questions
Q1) Describe the activities managers must accomplish as a part of import/export management.
Q2) A key NAFTA stumbling block has been the inability to resolve U.S.concerns with:
A) Improved free trade between the U.S., Mexico and Canada
B) Balance of trade between Canada and Mexico
C) Reduction of duties
D) Mexican truck safety
Q3) Which of the following is not classified as a Logistics Channel Activity?
A) Risk-Reward Channel
B) Transaction Channel
C) Communication Channel
D) Distribution Channel
Q4) With respect to global transportation,the events of 9/11 and subsequent pirate attacks ____.
A) have had little impact.
B) have caused severe hardship for rail and motor carriers
C) shown that there is a delicate balance between trade and security
D) have caused shippers to shy away for international trade
Q5) Why is cargo insurance is a challenge?
Q6) Describe the some of the key global transportation challenges.
Page 12
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Chapter 11: Global Transportation Execution
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Sample Questions
Q1) What is a ForeignTrade Zone?
Q2) What percentage of intercontinental containerized trade volume is moved by ocean?
A) 80%
B) 60%
C) 98%
D) 72%
Q3) Which of the following is not an ancillary service provider?
A) International Freight Forwarders
B) Non Vessel-owning Common Carriers
C) Export packer
D) Transportation provision
Q4) This type of bridge focus on water and rail with a port as the origin or destination point:
A) Land-bridge
B) Mini-bridge
C) Mico-bridge
D) Port-bridge
Q5) Define direct service.
Q6) What have been the changes under the Ocean Shipping Reform Act of 1999?
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Chapter 12: Third Party Logistics
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Sample Questions
Q1) Describe the categories of 3PL providers.
Q2) A financial base 3PL does what?
Q3) As of 2007 the 3PL industry produced revenues of:
A) $400 Million
B) $487 Billion
C) $18.6 Billion
D) $1.2 Trillion
Q4) Which of the following is considered the top customer challenge in dealing with a 3PL?
A) Lack of continuous improvement
B) Service level commitment not realized
C) Cost reduction not realized
D) Lack of global capability
Q5) Which of the following companies do not use 3PLs?
A) Procter and Gamble
B) Walmart
C) Cap-Gemini
D) Both Walmart and Procter and Gamble use 3PLs
Q6) According to the text book the definition of a 3PL is:
Q7) Describe the future issues and challenges facing the 3PL industry.
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Chapter 13: Private Transportation and Fleet Management
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Sample Questions
Q1) The advantages of a sleeper cab include all but:
A) Allows for two driver teams
B) Reduces the cost of lodging
C) Increases fuel efficiency
D) Allows one driver to accumulate off duty time in the sleeper
Q2) Shipments greater than how many thousand pounds require a five-axle trailer?
A) 45,000
B) 35,000
C) 55,000
D) 25,000
Q3) What is the fixed cost per miles for long distance refrigerated products?
A) $1.90
B) $0.037
C) $0.27
D) $0.47
Q4) Which form of private transportation is most prevalent?
A) Air
B) Rail
C) Ocean
D) Truck
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Chapter 14: Issues and Challenges of Global Supply Chains
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Sample Questions
Q1) Most locks and waterways are well past their designed life span,what was that original life span estimate?
A) 25 years
B) 100 years
C) 75 years
D) 50 years
Q2) What is meant by green supply chain?
Q3) How much did rates for moving crude through pipeline increase during the 2003 to 2006 period?
A) 8%
B) 22%
C) 32%
D) 45%
Q4) Discuss advances in truck navigation.
Q5) What has the rail industry has seen increased demand for?
Q6) Discuss the cost of congestion in the transportation system?
Q7) Discuss the impact of fuel prices on rail carriers.
Q8) Describe the impact of congestion on the rail system.
Q9) Over the next 20 years what kind of increase is there expected to be in freight truck traffic? Page 16
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