Transportation Management
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Course Introduction
Transportation Management focuses on the planning, execution, and optimization of the movement of goods and people. This course examines core concepts such as transportation modes, logistics networks, carrier selection, freight negotiation, cost management, and regulatory compliance. Students will learn how to design efficient transportation systems, incorporate sustainability practices, and utilize technology for tracking and route optimization. Through real-world case studies and practical applications, the course prepares students to address contemporary challenges in transportation, make strategic decisions, and improve supply chain performance within global and domestic contexts.
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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Page 2
Chapter 1: Transportation: Critical Link in the Supply Chain
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36 Verified Questions
36 Flashcards
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Sample Questions
Q1) When did senior manager begin to recognize the profit potential associated with proper supply chain management?
A) 1910
B) 1980s
C) 1990s
D) 2004
Answer: C
Q2) Which of the following is not listed as one of the value of service characteristics for transportation?
A) Landed cost
B) Transit time
C) Insurance rate
D) Reliability
Answer: C
Q3) What invention has led to the growth of suburban areas?
Answer: The automobile and roadway infrastructure.
Q4) Who has the power in the supply chain?
Answer: The retail giants such as Walmart and Target.
Q5) The early focus of logistics was?
Answer: Physical distribution (outbound transportation)
Page 3
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Chapter 2: Transportation: The Critical Link in the Economy
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Sample Questions
Q1) Based upon Lardner's Law,if transportation cost is cut in half,how much does the relevant market area increase?
A) 200%
B) 50%
C) 400%
D) 600%
Answer: C
Q2) 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.
Q3) What is the duty of a common carrier?
Answer: The common carrier has the duty to render service without discrimination based upon set rates for a specific commodity.
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Chapter 3: Transportation Regulation and Public Policy
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Sample Questions
Q1) The Interstate Commerce Commission (ICC)is usually described as:
A) an arm of the Congress
B) an expert body providing a continuity to regulation that neither the courts or legislature could not do.
C) the reason that the railroad industry was in such poor condition prior to 1980
D) an agency with somewhat limited powers
Answer: B
Q2) 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.
Q3) Which sentence best describes the current regulation of transportation?
A) The federal government controls all aspects of transportation
B) The federal government has removed most economic control but continues to oversee aspects of transportation safety
C) The government lets most carriers do what they want
D) The air line industry is free of all regulation but the railroads are still closely regulated
Answer: B
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Chapter 4: Costing and Pricing in Transportation
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41 Verified Questions
41 Flashcards
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Sample Questions
Q1) Which is correct regarding value-of-service pricing?
A) the model is used to determine the lower limit of freight rates
B) the model considers the supply side of the transportation pricing function
C) the value of the product is considered to be irrelevant in the determination of the freight rate
D) the model considers the ability of the commodity to bear a charge
Q2) Please explain social responsibility pricing.
Q3) How is the Relevant Market Structure in transportation described?
A) by comparing fixed costs with variable costs
B) by determining all the areas which the carrier can serve effectively
C) by generally describing all possible origin and destination points for each commodity
D) by identifying the relevant market area for one commodity moving between two points
Q4) What is the current status of rates under deregulation?
Q5) Define and discuss Cost of Service Pricing.
Q6) Discuss establishing carrier pricing objectives and identify the areas objectives can be set.
Q7) What is meant by stowability and handling?
Q8) Describe the three categories of the major pricing decision made by carriers.
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Chapter 5: Motor Carriers
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Sample Questions
Q1) Which agency within the Department of Transportation governs specifications of trucks such as number of lights,tires and other operating parts?
A) Surface Transportation Board
B) National Highway Traffic Safety Board
C) Federal Highway Administration
D) Federal Motor Carrier Safety Administration
Q2) What is one of the service characteristics of the trucking industry?
A) Trucks are built to fit on existing highways
B) Trucks have a speed advantage for shipments less than 500 miles
C) Truck rates are cheaper than rail or air
D) Trucks are easier to load than rail cars
Q3) Discuss the current method of funding for highways and include your opinion as the fairness as it relates to the trucking industry.
Q4) In 2006 how much was spend in the United States on highway transportation?
Q5) There are several service advantages to motor carrier.Name any three.
Q6) Several significant issues currently face the motor carriers.Pick two,define and discuss.
Q7) Explain the difference between for- hire and a private carriers.
Q8) Do motor carriers experience economies of scale?
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Chapter 6: Railroads
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Sample Questions
Q1) What commodity accounted for 7,800,000 railcar loads in 2007?
A) Nonmetallic minerals
B) Food
C) Farm products
D) Coal
Q2) What is one of the strengths of the railroad industry?
A) that it is not as affected by the weather as are other modes
B) that the railroads have large carrying capacity
C) that it can move products in both directions
D) that geographical barriers are not as formidable as they are for other modes
Q3) Briefly explain the factors that led to the erosion of Rail dominance in 1920 and 1930.
Q4) After the passage of the Staggers Rail Act of 1980 the railroads have improved service to their customers.Describe these areas of improvement.
Q5) When did scheduled common carrier frieght and passenger service begin in the U.S.?
A) 1918
B) 1868
C) 1789
D) 1930
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Chapter 7: Airlines
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Sample Questions
Q1) Mountain Airlines has annual operating revenues of less than $75 million with hubs in Denver and Salt Lake City.This airline would be classified in which air carrier category?
A) major carrier
B) national carrier
C) local hub carrier
D) regional carrier
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) What is the situation as related to airline labor? Be sure to include required skill levels,wages and the impact of unions.
Q4) Air carrier revenues are concentrated in which group of carriers?
A) all-cargo, exempt, commuters and private
B) commuters, charters, all-cargo
C) major, nationals, regionals
D) private, regulated, exempt
Q5) Describe the nature of service competition in the airlines.
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Chapter 8: Water Carriers and Pipelines
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Sample Questions
Q1) How many ports are there in the U.S.?
Q2) The water carrier's principal competitor for the movement of grain,coal,and ores is which mode of transportation?
A) pipelines
B) Canadian and foreign owned water carriers
C) railroads
D) motor carriers
Q3) Compare pipeline pricing to pricing by other modes,and describe how the pipelines price their services.
Q4) Public aid is given the water carriers in the form of waterway construction,development and maintenance.How do the water carriers repay the government for the aid received?
A) by agreeing to haul government traffic free of charge
B) by paying a 25 percent surcharge on their income taxes
C) by paying user charges in the form of lock fees and fuel taxes
D) no repayment is made, all the aid offered is free of charge since both commercial carriers and private citizens use the waterways for business and pleasure
Q5) Discuss water transportation labor.
Q6) Explain the ownership patterns of the pipelines.
Page 10
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Chapter 9: Transportation Risk Management
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Sample Questions
Q1) Which of the following is a type of product loss?
A) Pilferage
B) Damage
C) Climate control failure
D) Labor disruption
Q2) The Maritime Transportation Security Act of 2002 is intended to:
A) Protect U.S. ports and waterways from terrorist attack
B) Reduce the threat that a maritime container will be used to deliver a weapon
C) Streamline cargo manifests
D) Establish ocean based power generation
Q3) The submission of advanced electronic data on all shipments is a requirement of?
A) Container Security Initiative
B) Trade Act of 2002
C) Maritime Transportation Security Act of 2002
D) Customs-Trade Partnership Act
Q4) Describe three supply chain interruptions facing the transportation industry in the 2007 to 2009 timeframe.
Q5) Describe the six common risk categories related to freight transportation.
Q6) Describe Customs-Trade Partnership Against Terrorism (C-TPAT).
Q7) What is the objective of risk assessment?
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Chapter 10: Global Transportation Planning
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Sample Questions
Q1) 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
Q2) In response to the U.S.failure to extend the Trucking Pilot Program the Mexican Government did what?
Q3) Which of the following is not one of the export preparation activities?
A) Terms of trade
B) Cargo Insurance
C) Mode Selection
D) Terms of payment
Q4) Please compare different transportation modes with respect to strength,limitation,primary role,primary product characteristic,and example products.
Q5) Describe the some of the key global transportation challenges.
Q6) What is the purpose of the North American Free Trade Agreement? How has it impacted trade between the U.S.,Canada and Mexico?
Q7) What is a Maquiladora plant? What is its primary purpose?
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Chapter 11: Global Transportation Execution
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Sample Questions
Q1) A charter ship is:
A) provided by ships that are hired for a specific voyage or amount of time.
B) an older ship which is in poor condition
C) a foreign flag vessel seeking to become a U.S. flag vessel
D) a ship where the crew is hired from various countries where wage rates are very low
Q2) Which of the following is not a packaging concern for shipping by ocean?
A) Moisture
B) Pilferage
C) Fire
D) Excess weight
Q3) What is the purpose of "Shipping Conference"?
A) It allows ship owners to meet and discuss problems and lobby government.
B) The Conferences sets rates for the member carriers
C) It sets sailing schedules and assigns port berths
D) The Conference does none of the above.
Q4) Explain the different types of ship charter service.
Q5) What are ocean shipping rates based upon?
Q6) How are port authorities organized? What is the function of port authorities?
Q7) Define direct service.
Page 13
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Chapter 12: Third Party Logistics
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Sample Questions
Q1) What is one of the strengths of an Asset Based 3PL?
A) Ability to provide direct and immediate solutions
B) Flexibility with respect to fixed assets
C) Not limited to internal infrastructure
D) Likely to create innovative solutions
Q2) Please list and explain four of the ten intermediary and special services (as listed in the textbook)which are offered by 3PLs to their customers.
Q3) This step in establishing and sustaining a 3PL relationship involves determining your area of core competency and how a 3PL may form a strategic fit with you.
A) Strategic assessment
B) Decision to form relationship
C) Evaluation of alternatives
D) Structuring of an operating model
Q4) What type of 3PL originated from the public or contract warehousing business?
A) Forwarder based
B) Financial based
C) Transportation based
D) Distribution based
Q5) An asset based 3PL can be defined as:
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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) On average how much lower is a private fleet operating in a for fee basis,in terms of cost per mile,in comparison to a for hire fleet?
A) 20%
B) 15%
C) 10%
D) Private fleets can not operate for hire.
Q3) Insurance costs are made up of:
Q4) Describe what is meant by private air transportation.
Q5) Describe private rail transportation.
Q6) Miscellaneous trucking costs include all of the following except:
A) tolls
B) overload fines
C) driver road expense
D) insurance
Q7) What does the term private transportation mean?
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Chapter 14: Issues and Challenges of Global Supply Chains
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Sample Questions
Q1) How much did rates for moving crude through pipeline increase during the 2003 to 2006 period?
A) 8%
B) 22%
C) 32%
D) 45%
Q2) Discuss the impact on fuel price instability on Motor Carriers.
Q3) What has the rail industry has seen increased demand for?
Q4) Describe the impact of congestion on the rail system.
Q5) What causes profits to increase for rail carriers as fuel prices increased?
A) Constrained capacity and efficiency
B) Use of bulk purchases
C) reduction of container on flatcar
D) reduction of trailer on flatcar
Q6) What percentage of vessel traffic using federal and state locks experience delays?
A) 45%
B) 31%
C) 62%
D) 12%
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