Chapter 14 Transportation in a Supply Chain Multiple Choice Questions 26) When infrastructure is publicly owned, it is important to price usage to reflect A) the cost of rebuild the infrastructure once it is fully depreciated. B) the incremental profit from the use of the infrastructure. C) the marginal impact on the cost to society. D) the market clearing price. Answer: 27) The most important operational decision related to transportation in a supply chain is A) minimizing cost of transportation. B) maximizing profitability of the supply chain. C) reducing the level of cycle inventory. D) the routing and scheduling of deliveries. Answer:

True/False Questions 28) The mode of transportation that results in the lowest transportation cost will also lower total costs for a supply chain. Answer: 29) Only safety inventory should be aggregated if low demand exists for low value items. Answer: 30) A carrier uses transportation to minimize the total cost (transportation, inventory, information, and facility) while providing an appropriate level of responsiveness to the customer. Answer: 31) Transportation plays a key role in every supply chain because products are usually produced and consumed in the same location. Answer: 32) Transportation is a significant component of the costs incurred by most supply chains. Answer: 33) Transportation cost depends on the prices offered by different carriers and the extent to which the shipper uses inexpensive and slow, or expensive and fast, means of transportation. Answer: