OMGT2222 - 2018 Exam Practice Quiz

[Lecture 01 – Introduction and Overview of Freight Logistic]

1) Which is the correct sequence in a Supply Chain?

a. Factory  Raw Material Supplier  Refineries
b. Distributor  Retailer  End User
c. Tier 2 Distributor  Raw Material Supplier  Factory
d. Wholesaler  Factory  Retailer

2) Dangerous Cargo can be considered as ________.

a. partially dangerous.
b. only dangerous if you ingest it.
c. a subset of Hazardous Materials.
d. something that only the Government handles.

3) The Cost of Service Method of Pricing is also known as this.

a. The top down approach.
b. The Building Block approach.
c. The see-saw concept.
d. Used only during peak seasons.

4) The Value of Service method arrives at the final selling price based on _____.
a. the supplier's perception of the value.
b. the Boss' perception of the value.
c. the customer's perception of the value.
d. Daniel's perception of the value.

5) The Government's Role in Transportation is __________.

a. to build infrastructure.
b. to build expertise.
c. to build knowledge.
d. to build relationships.

6) Freight transport is a ___________________ demand.

a. independent (or primary)
b. dependent (or derived)
c. determined (or fixed)
d. regressed (or based on history)

7) This is one of the differences between a service and a product.

a. A product is intangible, but a service is tangible.
b. Production and consumption of a service occurs simultaneously.
c. A service does not have direct contact with any customer.
d. Transport Logistics is not a service, it is a product.
 8) This is one of the roles of transport in supply chain operations.
a. It provides relief for the workers.
b. It provides place and time utility.
c. It serves a certain class of the society.
d. It provides stability to the Government.

9) Transport Logistics can influence the supply chain operations in this way.
a. It resolves many urban problems.
b. It creates an avenue for business growth.
c. It prevents population decline.
d. It drives purchasing, location & partnerships.

10) One of the global challenges for freight transport is technological advancements.
One such example of this is _______.
a. the rapid decline of second-hand products.
b. the rapid growth of online purchasing.
c. the resistance to the adoption of technology.
d. the sluggish adoption of technology by the Government.

11) Customers are now driving supply chains by _______________.

a. demanding a very short delivery lead time.
b. being very tough negotiators.
c. refusing to pay for late deliveries.
d. creating a price-monopoly market.

[Lecture 02 – Global Gateway & Logistics Cities]

12) A gateway can be defined as a ________________.

a. very useful for the military.
b. method used to make import and export very tedious and difficult.
c. terminal that operates only as a seaport.
d. door that allows import and export of cargo in and out of the country.

13) What is the purpose of a virtual port?

a. It is used as an inland logistics Centre performing the same functions as a
coastal port.
b. It is used as a spare port in case the coastal ports are congested.
c. It provides extra loading & unloading space for import/export cargo.
d. It is meant only for storage and not for customs operations.

14) The centrality of a network can be defined as __________________.

a. the geographical location of a terminal with short travelling distance.
b. how far away from the city central is a certain terminal.
c. the centralization of operations in a terminal.
d. a high usability of a certain terminal.
[Lecture 03 – Carrier Strategies & Shipper Strategies]

15) Which one of these is NOT a recommended Rule of Efficiency for carrier
operating strategies?
a. Move in a continuous straight line (minimize circular motions)
b. Minimize stopping and restarting (reduce intermediate handling)
c. Adopt the highest possible technology (irrespective of costs)
d. Maximize capacity by aiming for full load in every route

16) One of the competitive operations in transportation is based on offering flexibility

in ____________.
a. mode choice.
b. manpower choice.
c. process choice.
d. technology choice.

17) In freight distribution and network strategies, a point-to-point routing will result in
___________.
a. manpower efficiency.
b. cost efficiency.
c. service-effectiveness.
d. paper-work effectiveness.

18) The most service effective type of routing is the ________________.

a. flexible routing.
b. fixed routing.
c. corridor routing.
d. hub-and-spoke routing.

19) This is one of the ways to achieve transport flexibility, in the area of service
effectiveness.
a. The ability to accommodate different routing as an internal flexibility.
b. Ability to create new ideas as an external flexibility.
c. The ability to change delivery dates as an internal flexibility.
d. The ability to provide different vehicle types as an external flexibility.

20) Pooling services are considered as a Shipper's ___________________.

a. general transportation strategy.
b. bulk shipment strategy.
c. small shipment strategy.
d. virtual shipment strategy.

21) A transport manager has to consider _____________ when performing mode

selection.
a. the carrier's willingness to negotiate
b. the transport rate (cost)
 c. the carrier's financial stability
d. transit time and transit time reliability

22) In a collaborative shipper-carrier relationship, both parties are ___________.

a. willing to modify their business objectives & practices to achieve a
common long-term goal.
b. involved in a greater level of strategic partnership and outcome.
c. at an arm's length transactional relationship.
d. not involved in any form of negotiation nor relationship.

23) In a Shipper-Carrier relationship, Arm's Length means _______________.

a. both parties are physically apart.
b. both parties agree on a short-term job.
c. both parties do not communicate at all.
d. either party is in a more favorable position.

[Lecture 04 – Environment of Logistics]

24) What does it mean to de-regulate the transport industry?

a. It means that the Government wants to increase the country's GDP.
b. It means a removal of barriers to entry, which normally protect the public
sector, & the creation of a contestable market.
c. It means that the country is likely going to go into a recession soon.
d. It means that the transport pricing will be determined by the Government's
controlling bodies.

25) This is one of the benefits of de-regulation of the transport industry in a country.
a. To ensure security of cargo.
b. To create a competitive service level.
c. To make customers suffer for it.
d. To allow the Government to be in complete control of the market.

26) There are three parties involved in transporting freight from one point to another.
Which one is NOT one of these three?
a. The Owner (or Seller) of the goods.
b. The Government (or the State).
c. The Recipient (or Buyer) of the goods.
d. The Carrier (or 3rd party) of the goods.

27) A "contract of affreightment" is a contract _________________.

a. between a ship-owner and the charterer in which the ship-owner agrees to
carry goods for the charterer in the ship.
b. for the ship owner to sell his ship to another ship owner.
c. between the Owner of the goods and the Government to take over his
cargo.
d. that cannot be realized when the market price is too high.
 28) This is NOT one of the social costs of Transportation Logistics.
a. Demurrage.
b. Pollution to the ocean and seas.
c. Waste emissions into the atmosphere.
d. Road traffic congestions.

[Lecture 05 – Modes of Transport]

29) The Supply Chain is divided into two halves. Which are the two halves?
a. First and Second Supply Chain.
b. Distribution Chain and Retail Supply Chain.
c. Materials Supply Chain & Distribution Chain.
d. Physical Cargo Chain and Information Chain.

30) Truck sub-mode of transport has this as the best advantage over the other
modes.
a. High Cost of transport.
b. Low damages of cargo.
c. High Accessibility to final destinations.
d. Fastest time taken from origin to destination.

31) The operating cost of ______ transport mode is the highest.

a. air
b. road
c. rail
d. water

32) This is the one major reason why shippers use air transport for their cargo.
a. Because it is the most prestigious
b. Because it can bring the cargo there the fastest
c. Because there are zero damages
d. Because it can carry the cargo over very long distances

33) This mode of transport is the best in terms of flexibility of its own capacity.
a. Land-Road
b. Water
c. Land-Rail
d. Air

34) We should use ______ transport if we want to ship 11,000 cartons of automobile
spare parts from Jakarta to Shanghai.
a. sea
b. road
c. air
d. rail
 35) The Cost-of-Service Pricing Model uses the _____________ costs to determine
the final price.
a. fixed and variable
b. common and uncommon
c. value and non-value added
d. building-block

36) The Value-of-Service Pricing is based on the ______________ of the services

provided.
a. Supplier's perception of the cost
b. Shipper's understanding of the value
c. Consignee's computation of the cost
d. Customer's perception of the value

37) Transport carriers should capitalize on ___________, rarity of its services and
emergencies to charge at value-of-service rate.
a. lull seasons
b. peak seasons
c. useful seasons
d. popular seasons

[Lecture 06 – Land (Road) Mode]

38) The formula for the Operating Ratio (Cost Structure) for Land-Road Transport
Mode is ___________.
a. Operating Expense × Operating Revenue.
b. Operating Expense ÷ Operating Revenue.
c. Operating Revenue ÷ Operating Expense.
d. Operating Revenue + Operating Expenses.

39) Line-haul vehicles are typically used for __________________.

a. Single destination, long distance transports.
b. Multiple destinations, long distance transport.
c. Single destination, short distance transport.
d. Multiple destinations, short distance transport.

40) City trucks then to exhibit these characteristics.

a. They are smaller in size and carry lower volume of cargo.
b. Their schedules are inflexible.
c. They require very little maintenance.
d. They are designed to carry out-of-gauge and over-sized cargo.

41) Refrigerated Containers on trailers are used for ______________ cargo.

a. Sensitive
b. Fragile
 c. General
d. Sub-zero temperature

42) This is NOT a key advantage of using shipping containers in Land (Road)
Transport Mode.
a. Cargo inside the container is highly secured.
b. It is the cheapest way to transport cargo.
c. It prevents theft of the cargo.
d. It minimizes damages to the cargo.

43) This is the definition of Unitization.

a. It is a method of counting multiple items as a single quantity.
b. It is combining many part numbers into a single part number.
c. It is securing many items into a singular unit for easier handling.
d. It is handling one item at a time.

44) The purpose of road transport terminals is _____________________.

a. for short term storage and stoppages of trucks.
b. to reduce overall transport cost for the shipper.
c. to ensure the driver is paid on time.
d. to allow the trucks to be maintained before moving to its final destination.

45) Delivering a large shipment over a long distance from a single origin to multiple
destination points, we need a ____________.
a. Pick-Up and Delivery (PUD) Terminal.
b. Break-bulk Terminal.
c. Consolidation Terminal.
d. Relay Terminal.

46) A Pick-Up and Delivery (PUD) Terminal is best suited for _____________.
a. all small item deliveries.
b. small item deliveries to multiple drop points.
c. small items to a single drop point.
d. fragile items only.

47) In the design of the number of road transport terminals, this is NOT one of the
factors to consider.
a. The amount of subsidy that can be claimed from the Government.
b. The degree of market penetration.
c. The trade-off between peddle runs and service implications.
d. The cost of building each terminal.

48) Empty backhaul can be reduced by ______________________.

a. reducing the number of cargo drop-off points.
b. increasing the number of cargo drop-off points.
c. keeping the same number of cargo drop-off points.
 d. reducing the size of the delivery truck.

49) A public-common road carrier or road transport service provider has these
characteristics.
a. It is available to only one customer by contract.
b. It is available to the public and industry to hire.
c. It is a dedicated resource only for the client.
d. It is a transport services are done solely for its owner.

50) A chartered contract carrier is usually engaged on a _______ basis.

a. long-term
b. mid-term
c. loose-term
d. short-term

51) When considering current issues in land transport, the Government has
regulatory control like _______.
a. price control.
b. illegal cargo control.
c. adoption of high technology control.
d. hiring of manpower control.

[Lecture 07 – Water Mode]

52) If an object sinks in water, it means that the buoyancy force is _________ than
the weight of the object.
a. lesser or equal to
b. greater than
c. lesser than
d. equal to

53) What is the purpose of Plimsol Lines on the side of a sea-going vessel?
a. To help the captain estimate the volume of cargo being loaded onto the
vessel.
b. It is a visual method to ensure there is no overloading of cargo onto the
vessel.
c. It is popular method used by captains to check if they can make more
money by taking more cargo.
d. It is not very useful to the captain and serve only as a guide for loading.

54) Conference Rates in water shipping carriers are _______________.

a. rates to protect small companies who do not own large sea-going vessels.
b. rates that are being used in conferences.
c. rates that re privately controlled.
d. rates that are agreed internationally by the World Shipping Council.
 55) Liner Services in a sea-going carrier means ________________.
a. It is a point to point flexible route.
b. It is one to many ports fixed routes.
c. It is a point to point fixed route.
d. It is multiple to multiple port routes.

56) This is one of the major issues in water transport.

a. Cabotage
b. Slow business growth
c. Carbon emission
d. Poor leadership

[Lecture 09 – International Freight Logistic & Private Freight Transportation]

57) Incoterms determine ___________________.

a. who owns the cargo at the origin.
b. who is responsible for the cargo in transit.
c. who is responsible for the cargo when it reaches the consignee.
d. what the Government has to do if a dispute arises.

58) This is the definition of Intermodal Transport.

a. There are more than one mode of transport and they are linked in series.
b. There are many modes, but they are not connected.
c. There are many modes but interlined in a network format.
d. There are many modes with many routes.

59) How do we overcome a large land mass in global water-ocean shipments?

a. We do not sign contracts with clients for such shipments.
b. We spend more money and carry the freight by air.
c. We make use land-bridge method.
d. We request to ship to another destination instead.

60) Incoterms "Ex-works" means the seller has completed his responsibility
____________________.
a. when the cargo reaches the consignee's premises.
b. when the cargo reaches the consignee's Port of Entry.
c. when the cargo reaches the Port of Exit.
d. when the cargo is given to the transporter collecting it at the Seller's
premises.

61) When the seller delivers when the goods are placed alongside the sea-going
vessel (e.g., on a quay or a barge), this is _______ terms.
a. Free on Board (FOB)
b. Free Alongside Ship (FAS)
c. Free Carrier (FCA)
d. Free for Everybody (FFE)
 62) Cost, Insurance and Freight (CIF) is defined as _______________ necessary to
bring the goods to the named port of destination.
a. the seller must contract for and pay the costs and freight
b. the seller must contract for and pay the costs, insurance and freight
c. the buyer must contract for and pay the costs and freight
d. the buyer must contract for and pay the costs, insurance and freight

63) Who bears the entire risk of costs, insurance, freight & Customs duty charges for
DDP (Delivered Duty Paid) term?
a. The Government.
b. The Buyer.
c. The Seller.
d. The Carrier.

64) Define postponement in the supply chain.

a. The shipment was postponed to another departure date.
b. Customization of the product is done as far downstream the distribution
chain as possible.
c. The customer gets to mix-and-match his own product.
d. It is useful only when the Factory Gate Price is high.

65) This is the role of a 4PL Service Provider.

a. It is an extension of a 3PL warehousing services.
b. It is part of the carrier's role too.
c. It is a solution provider and a central coordinator for all parties in a
shipment.
d. They are lawyers that are needed to ensure shipments are done legally.

[Lecture 10 – Economics of Freight Transportation]

66) For a monopolistic market structure, the service quality & price will be _______
and ______, respectively.
a. medium; low
b. medium; high
c. high; low
d. low; low

67) A monopolistic competitive market structure means ___________________.

a. there are several medium size suppliers.
b. there is only one single supplier.
c. there are two to three large suppliers.
d. there are multitude of suppliers.

68) A commodity market will likely be a __________market structure.

a. oligopolistic
 b. unlimited
c. monopolistic competition
d. pure competition

69) The Value-of-Service Pricing technique will usually cover ________ of the
business transactions.
a. only 1%
b. 10 to 20%
c. less than 5%
d. more than 80%

70) The Factory Gate Price (FGP) enables the Retailer to _______________.
a. have visibility on the high cost of the distribution chain.
b. understand the difficulties faced by the factory.
c. become a better supply chain manager.
d. sell at a higher price and blame it on the factory.

71) If the Factory Gate Price (FGP) of a Laptop is $1,200, and the combined
Distribution Centre cost = $700 and the wholesaler adds 10%, what is the
Retailer's Cost?
a. $1,900
b. $1,320
c. $2,090
d. Cannot be computed.

72) What is scheduling in transport management?

a. It is matching manpower to tasks.
b. It is matching capacity to demand.
c. It is deriving demand from the market.
d. It is a statistical method to design transport equipment.

73) If Demand is 2,300 pieces, Balance in the warehouse is 400 pieces and Goods-
in-Transit to you is 500 pieces, how many do we need to purchase?
a. 2,300 pieces.
b. 1,400 pieces.
c. 1,900 pieces.
d. 3,200 pieces.

[Lecture 11 – Information Technology]

74) EDI technology is used extensively ________.

a. for e-Purchase Orders & e-Billing.
b. for physical deliveries & e-Billing.
c. for e-Purchase Orders, e-Billing & physical deliveries.
d. to reduce the threat of cargo loss.
75) A Straight Bill of Lading can be defined as ________________.
a. one that is printed on a straight edged paper.
b. anyone in possession of the original endorsed negotiable bill can take
possession of the cargo.
c. one that is issued to a specified consignee for the delivery of the goods
and that cannot be endorsed to another party.
d. a document that is used to allow the transporter to carry the cargo straight
to the destination.

76) The main advantage of using Letter of Credit method is _____________.

a. payment is done after the cargo is released to the last mile delivery
transporter.
b. the buyer will get the cargo as long as he is a powerful person.
c. cargo can be released anytime as long as the seller says so.
d. the seller gets paid by his bank no matter what happens.