Transportation and Distribution Management
I.Chapter Study Questions
1. Explain the difference between elastic and inelastic demand. Why are the two concepts important in transportation demand?
2.Why are highways serving major metropolitan areas sometimes described as their lifeline?
3.Discuss the advantages and disadvantages of increasing regulations relating to transportation safety and security
4.Describe an oligopolistic market structure. What alternatives to price competition exist in such markets? Why would these alternatives be important to shippers?
5. Describe how fuel and labour have impacted motor carrier cost structures and how they have altered motor carrier operations.
6. Explain the difference between intramodal and intermodal competition in the railroad industry. Which form of components is most beneficial to shippers? Why?
7. What are the current issues facing the airline industry? Discuss how each impacts the industry, its customers, and employees.
8. The typical pipeline company has high fixed cost. What economic factors account for this situation? What special problems does this present?
II. Case Question :Case 3-2 “The U.S. Airline Industry Public Support”
III. Multiple Choice Question :
1. Which of the following is not listed as one of the forces driving change in the economic landscape?
b. supply chain integration
c. consumer empowerment
d. scarcity of oil
2. A key strategy that has enabled companies to successfully meet the demands of empowered consumers is:
a. lower prices
b. better quality
d. 24-hour service
3. How much has motor / air passenger mile split changed between 1990 and 2006?
a. The percentage of air increased 80%
b. The percentage of air decreased 80%
c. They remained unchanged
d. Not enough information to figure that out
4. Please pick the correct formula for elasticity:
a. % change in quantity / change in price
c. % change in price / % change in quantity
d. % change in quantity / % change in price
5. Landed cost is:
a. The fee associated with landing an aircraft at an airport
b. The total cost of a product to include the transportation cost of getting it to market
c. The cost of transportation
d. Port charges
6. 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
7. Which mode of transportation has had the greatest impact on the location of major cities?
8. One highly effective way to reduce the bull whip effect is to replace inventory with
c. on line ordering
d. closer manufacturing
9. Which of the following is likely to have elastic demand?
b. Fire department service
c. Starbucks coffee
1. According to the book, what can be argued as the glue that holds the supply chain together?