Supply Chain Management Transportation 2

Question 1

Which transportation mode offers the lowest cost per ton-mile for bulk commodities over long distances in the US?

Accepted Answer

Rail

Answer

Rail transportation offers the lowest cost per ton-mile for bulk commodities like coal and grain over long distances.

Question 2

A shipper consolidates multiple small shipments from different suppliers into one truckload. This practice is called:

Accepted Answer

Pool consolidation

Answer

Pool consolidation combines smaller shipments from multiple origins heading to a common destination zone into a single load.

Question 3

Under the Carmack Amendment, what is the common carrier's liability for lost or damaged freight?

Accepted Answer

Actual loss or injury to the cargo

Answer

The Carmack Amendment makes common carriers liable for actual loss or damage to goods, with limited exception defenses.

Question 4

A 'milk run' transportation strategy is best described as:

Accepted Answer

A single vehicle making sequential stops to pick up from multiple suppliers

Answer

A milk run uses one vehicle to collect smaller quantities from several suppliers on a loop, reducing inbound freight costs.

Question 5

Which document serves as both a receipt for goods and a contract of carriage between a shipper and an ocean carrier?

Accepted Answer

Bill of lading

Answer

A bill of lading is the key ocean shipping document that acts as a receipt, title document, and contract of carriage.

Supply Chain Management Practice Test