Transportation in Supply Chain Management
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Transportation in Supply Chain Management

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What is the primary role of transportation in supply chain management?

  • To store products until they are needed
  • To move products between locations in the supply chain (correct)
  • To provide customer service during delivery
  • To dictate product pricing based on delivery speed

    • Which of the following parties is NOT directly involved in the transportation process?

  • Carrier
  • Infrastructure owner
  • Shipper
  • Retail manager (correct)

    • What is one key characteristic of air transportation?

  • It allows flexibility in transportation routes
  • It is best for large, heavy products
  • It offers fast delivery for small, high-value items (correct)
  • It has the lowest shipping costs

    • How do package carriers primarily transport products?

    <p>Using a combination of air, truck, and rail</p> Signup and view all the answers

    Which mode of transportation is specifically mentioned as costly but fast?

    <p>Air</p> Signup and view all the answers

    Which of the following influences the effectiveness of transportation in supply chain management?

    <p>Actions from both transportation policy bodies and infrastructure owners</p> Signup and view all the answers

    What is a unique feature of information goods in transportation?

    <p>They can be sent through the internet</p> Signup and view all the answers

    Which mode of transportation would generally NOT be chosen for small, high-value items?

    <p>Sea</p> Signup and view all the answers

    What is the primary service offered by package carriers?

    <p>Rapid and reliable delivery for small packages</p> Signup and view all the answers

    What is a significant advantage of trucking over rail transportation?

    <p>Door-to-door shipment option</p> Signup and view all the answers

    Which mode of transportation is ideally suited for heavy, low-value shipments that are not time-sensitive?

    <p>Rail</p> Signup and view all the answers

    What is a limitation of water transport?

    <p>Limited to certain geographic areas</p> Signup and view all the answers

    Which type of products are primarily transported through pipelines?

    <p>Crude petroleum and natural gas</p> Signup and view all the answers

    What describes intermodal transportation?

    <p>Utilizing multiple modes of transport for a single shipment</p> Signup and view all the answers

    Why might companies choose water transport for certain shipments?

    <p>It is more cost-effective for large volumes.</p> Signup and view all the answers

    What comprises a transportation network?

    <p>Transportation modes, locations, and routes for shipping products</p> Signup and view all the answers

    What is one major advantage of direct shipment transportation networks?

    <p>Elimination of intermediate warehouses</p> Signup and view all the answers

    Which consideration is NOT important when designing a transportation network?

    <p>Seasonal weather patterns</p> Signup and view all the answers

    What defines a milk run in transportation logistics?

    <p>A route that consolidates deliveries to multiple locations</p> Signup and view all the answers

    Why is transportation decision-making considered significant?

    <p>It can determine customer service levels and costs involved</p> Signup and view all the answers

    Which of the following statements about direct shipment networks is true?

    <p>They require careful management of large local orders.</p> Signup and view all the answers

    How do milk runs contribute to cost reduction?

    <p>Through combining shipments to multiple locations on a single truck</p> Signup and view all the answers

    Which of the following is NOT a consideration in transportation network design?

    <p>Number of employees in the transportation department</p> Signup and view all the answers

    What role does an intermediate site typically play in transportation networks?

    <p>To serve as a cross-docking facility or stock product</p> Signup and view all the answers

    How do milk runs help reduce transportation costs in supply chain management?

    <p>By consolidating small shipments into larger deliveries</p> Signup and view all the answers

    What is one significant advantage of using a tailored network in transportation?

    <p>Enhanced transportation cost management and responsiveness</p> Signup and view all the answers

    What is an essential component for operating a tailored network in transportation?

    <p>Strong coordination facilitated by an information infrastructure</p> Signup and view all the answers

    What type of risk involves the possibility that a shipment may not reach its intended destination due to external disruptions?

    <p>Transit risk</p> Signup and view all the answers

    What role does cross-docking play in the logistics strategy of Seven-Eleven Japan?

    <p>It facilitates fast movement of goods from suppliers to retail outlets</p> Signup and view all the answers

    What should managers ensure regarding a firm's transportation strategy?

    <p>It supports and aligns with the competitive strategy of the firm</p> Signup and view all the answers

    Which statement about Peapod’s use of milk runs is true?

    <p>Milk runs help manage costs for small home deliveries</p> Signup and view all the answers

    Which of the following is NOT a type of risk to consider in transportation?

    <p>The risk of vehicle maintenance issues</p> Signup and view all the answers

    What is the primary benefit of using cross-docking in a supply chain?

    <p>Faster product flow</p> Signup and view all the answers

    In the just-in-time (JIT) manufacturing system, which of the following is true?

    <p>Large shipments are typical for inbound transportation</p> Signup and view all the answers

    Why might a distribution center (DC) hold inventory instead of shipping products directly to stores?

    <p>To consolidate shipments and reduce frequency</p> Signup and view all the answers

    How does the milk run system benefit suppliers and distributors?

    <p>By minimizing transportation costs and maximizing efficiency</p> Signup and view all the answers

    What is a key characteristic of W.W. Grainger's distribution strategy?

    <p>Shipping products in large quantities to a few DCs</p> Signup and view all the answers

    What advantage does Peapod gain by using milk runs for delivery?

    <p>Increased reach without raising transportation costs</p> Signup and view all the answers

    What would most likely hinder the implementation of cross-docking?

    <p>High volume of stored inventory in warehouses</p> Signup and view all the answers

    What shipping method does Toyota primarily utilize for its JIT manufacturing system?

    <p>Using milk runs from suppliers to central distribution centers</p> Signup and view all the answers

    Study Notes

    Transportation in Supply Chain Management

    • Transportation is the movement of products within a supply chain, from supplier to customer.
    • The shipper requires the movement of the product.
    • The carrier transports the product.
    • Transportation infrastructure owners and operators (roads, ports, etc.) and policy-setting bodies heavily impact the effectiveness of transportation.

    Modes of Transportation

    • Air: Fast, expensive, best for time-sensitive, valuable, and long-distance shipments.
    • Package Carriers: Deliver small, time-sensitive packages (FedEx, UPS, USPS).
    • Truck: More expensive than rail, but offers door-to-door delivery and shorter transit times.
    • Rail: High fixed costs (tracks, locomotives), long transit times, ideal for heavy, low-value, non-time-sensitive shipments.
    • Water: Limited to certain areas, slowest mode, prone to delays at ports and terminals.
    • Pipeline: Primarily for transporting crude oil, refined petroleum products, and natural gas.
    • Intermodal: Combining multiple modes of transport (e.g., truck/rail), increasing in popularity due to containerization and global trade.

    Transportation Networks

    • A collection of transportation modes, locations, and routes for shipping products.
    • A well-designed network achieves responsiveness at a low cost.

    Designing Transportation Networks

    • Direct or Intermediate Shipments: Consider whether to send goods directly to the buyer or through an intermediate site.
    • Intermediate Site Function: Should the intermediate site stock products or act as a cross-docking point (direct transfer without storage)?

    Importance of Transportation Network Decisions

    • Backbone of Supply Chains: Impacts cost, customer demand, available facilities, products transported, delivery time, and administrative processes.

    Types of Transportation Networks

    • Direct Shipment Network: Products sent directly from supplier to buyer, eliminating intermediate warehouses, but limited flexibility.
    • Direct Shipping with Milk Runs: Single truck delivers from one supplier to multiple buyers or picks up from multiple suppliers for one buyer, consolidating deliveries for cost savings.
    • All Shipments via Intermediate Distribution Center (DC) with Storage: Products shipped to a central DC for storage and then sent in smaller batches to buyers.
    • All Shipments via Intermediate Transit Point with Cross-Docking: Products cross-docked at a transit point (DC) and sent directly to buyers without storage, minimizing inventory and transit time.
    • Shipping Via DC with Milk Runs: Milk runs used from a DC to deliver small lot sizes to multiple buyers, optimizing outbound transportation costs.
    • Tailored Network: Combining different network types for cost optimization and responsiveness, requiring advanced information infrastructure.

    Risk Management in Transportation

    • Delays: Congestion along roads or at ports and airports.
    • Disruption: Intermediate nodes or links disrupted by external forces.
    • Hazardous Materials: Risk of hazardous materials during transport.

    Transportation Decision-Making in Practice

    • Aligning Transportation Strategy with Competitive Strategy: Managers should ensure transportation strategies support the overall business strategy and set incentives to achieve this.

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    Related Documents

    Transportation Networks in SCM (Group 4) PDF

    Description

    This quiz explores the role of transportation in supply chain management, detailing various modes of transport such as air, truck, rail, and more. Understand the impact of transportation on product movement and the importance of infrastructure and policy. Test your knowledge on the effectiveness and challenges associated with each mode.

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