Chapter 15: Logistics, Distribution, and Transportation

Question 1

Which of the following transportation modes has high capacity but slow transit times?

Accepted Answer

Ship

Question 2

Which transportation mode has very low cost but relies on highly specialized infrastructure and is used for liquids?

Accepted Answer

Pipeline

Question 3

Hand delivery is a cheap and fast mode of transportation.

Accepted Answer

False

Question 4

The transportation method of linear programming aims to maximize shipment volume.

Accepted Answer

False

Question 5

Which system allows comparing different criteria to select a plant location?

Accepted Answer

Factor-rating system

Question 6

In free trade zones, customs duties can be delayed.

Accepted Answer

True

Question 7

Which of the following transportation modes is most suitable for small, lightweight, and expensive products?

Accepted Answer

Airplane

Question 8

The centroid method is commonly used by communication companies to locate transmission towers.

Accepted Answer

True

Question 9

The hub-and-spoke system is mainly based on:

Accepted Answer

Sorting products at a central point for shipment

Question 10

What is an advantage of using cross-docking in a warehouse?

Accepted Answer

Eliminates the need for inventory storage

Question 11

A good business climate includes the absence of other companies in the same industry.

Accepted Answer

False

Question 12

Multimodal strategies are commonly used in logistics.

Accepted Answer

True

Question 13

Which factor directly influences the decision to locate a plant near customers?

Accepted Answer

Reduction in delivery time

Question 14

Logistics represents around 8–9% of the U.S. Gross Domestic Product (GDP).

Accepted Answer

True

Question 15

Which company is considered a third-party logistics (3PL) provider?

Accepted Answer

DHL

Questions 15