Supply Chain Management Transportation 4 — Questions and Answers
Question 1: Which of the following best describes 'intermodal' transportation?
- Using a single carrier for the entire shipment journey
- Moving freight in a standardized container using two or more transport modes (Correct answer)
- Transporting hazardous materials under special permits
- Combining air and ocean freight on the same bill of lading
Correct answer: Moving freight in a standardized container using two or more transport modes
Intermodal transportation moves cargo in standardized containers that transfer between trucks, rail, and ships without rehandling the goods.
Question 2: A peak season surcharge (PSS) imposed by ocean carriers is an example of:
- A base freight rate component
- An accessorial charge applied during high-demand periods (Correct answer)
- A fuel adjustment factor
- A port congestion penalty
Correct answer: An accessorial charge applied during high-demand periods
PSS is an accessorial charge carriers impose during periods of high demand to capture additional revenue beyond base rates.
Question 3: In the context of supply chain transportation, what does 'tender acceptance rate' measure?
- The percentage of freight tenders that carriers accept (Correct answer)
- The speed at which shippers respond to carrier rate quotes
- The ratio of on-time pickups to total scheduled pickups
- The number of loads awarded to primary versus backup carriers
Correct answer: The percentage of freight tenders that carriers accept
Tender acceptance rate tracks how often carriers accept load tenders from shippers, indicating carrier capacity availability.
Question 4: Which transportation mode is most suitable for moving crude oil across long distances within the continental US at the lowest variable cost?
- Tanker trucks
- Rail tank cars
- Pipeline (Correct answer)
- Inland barge
Correct answer: Pipeline
Pipelines have the lowest variable cost per unit for continuous bulk liquid movement over long distances, though with high fixed infrastructure costs.
Question 5: A '53-foot dry van' truckload can legally carry a maximum gross vehicle weight (GVW) of approximately how many pounds in the US?
- 60,000 lbs
- 70,000 lbs
- 80,000 lbs (Correct answer)
- 90,000 lbs
Correct answer: 80,000 lbs
Federal weight limits cap combination vehicles (tractor + trailer) at 80,000 lbs gross vehicle weight on interstate highways.
Question 6: The 'freight payment and audit' function in transportation management primarily helps companies:
- Select the lowest-cost carrier for each shipment
- Verify carrier invoices for accuracy and recover billing overcharges (Correct answer)
- Negotiate long-term contract rates with carriers
- Track shipment status in real time
Correct answer: Verify carrier invoices for accuracy and recover billing overcharges
Freight audit involves checking carrier invoices against contracted rates and shipment data to identify and recover billing errors.
Question 7: What is 'dimensional weight' (DIM weight) pricing used primarily by parcel and air carriers?
- Charging based on the actual weight of the package
- Charging based on the package's cubic size divided by a DIM factor, if greater than actual weight (Correct answer)
- A surcharge for oversized packages above a threshold
- A weight-based discount for high-volume shippers
Correct answer: Charging based on the package's cubic size divided by a DIM factor, if greater than actual weight
DIM weight is calculated by dividing package volume by a carrier-specified divisor, and carriers charge whichever is greater—DIM or actual weight.
Supply Chain Management Transportation 4
Which of the following best describes 'intermodal' transportation?