Chapter 7 Study Questions
1.Discuss the disproportionate risk of holding inventory by retailers, wholesalers, and manufacturers. Why has there been a trend to push inventory back up the channel of distribution?
2.What is the difference between the probability of a stockout and the magnitude of a stock out?
3.Customer-based inventory management strategies allow for the use of different availability levels for specific customers. Discuss the rationale for such a strategy. Are such strategies discriminatory? Justify your position.
Chapter 8 Study Question
1.Railroads have the largest percentage of intercity freight ton-miles, but motor carriers have the largest revenue. How do you explain this relationship?
2.The five basic modes of transportation have been available for well over 50 years. Is this the way it will always be, or can you identify a sixth mode that may become economically feasible in the foreseeable future?
3.What is the purpose of freight classification? Describe the differences between a rate and a rating. How do they relate to classification?