CTS CTS Supply Chain & Intermodal Transportation 1 — Questions and Answers
Question 1: Which term describes the movement of freight using two or more modes of transportation without handling the freight itself when changing modes?
- Multimodal shipping
- Intermodal transportation (Correct answer)
- Cross-docking
- Transloading
Correct answer: Intermodal transportation
Intermodal transportation moves freight in a standardized container across multiple transport modes without direct cargo handling at transfer points.
Question 2: A 53-foot domestic intermodal container is being transferred from rail to truck at an intermodal terminal. What equipment is typically used to perform this lift?
- Forklift
- Reach stacker
- Rubber-tired gantry crane (RTG) (Correct answer)
- Overhead bridge crane
Correct answer: Rubber-tired gantry crane (RTG)
Rubber-tired gantry cranes are the standard equipment at intermodal rail yards for lifting domestic containers onto chassis.
Question 3: In supply chain management, what does the term 'bullwhip effect' refer to?
- Driver fatigue caused by long-haul routes
- Increasing variability in order quantities as you move upstream in the supply chain (Correct answer)
- Sudden fuel price spikes affecting carrier rates
- Overloading trailers beyond legal weight limits
Correct answer: Increasing variability in order quantities as you move upstream in the supply chain
The bullwhip effect describes how small fluctuations in end-customer demand become amplified into larger swings in orders at each upstream supply chain tier.
Question 4: Which incoterm places maximum responsibility on the seller, including delivery to the buyer's named destination with all duties and taxes paid?
- EXW (Ex Works)
- FOB (Free On Board)
- DDP (Delivered Duty Paid) (Correct answer)
- CIF (Cost, Insurance and Freight)
Correct answer: DDP (Delivered Duty Paid)
DDP requires the seller to bear all costs and risks, including import duties and taxes, until the goods are delivered to the named destination.
Question 5: A shipper wants to reduce supply chain risk by sourcing the same component from suppliers in different regions. This strategy is known as:
- Vertical integration
- Just-in-time procurement
- Supply base diversification (Correct answer)
- Demand aggregation
Correct answer: Supply base diversification
Supply base diversification spreads procurement across multiple geographic sources to reduce the impact of regional disruptions on the supply chain.
Question 6: What is the primary purpose of a bill of lading (BOL) in freight transportation?
- To set carrier rates for a shipment
- To serve as a receipt, contract of carriage, and document of title (Correct answer)
- To declare commodity value for insurance
- To authorize customs clearance for international shipments
Correct answer: To serve as a receipt, contract of carriage, and document of title
The bill of lading is the foundational freight document that acts simultaneously as a cargo receipt, the contract between shipper and carrier, and a title document.
CTS CTS Supply Chain & Intermodal Transportation 1
Which term describes the movement of freight using two or more modes of transportation without handling the freight itself when changing modes?