Chapter 13 Case StudyThe U.S.

Transportation Industry: Planning for a Potential

Post-Recession Capacity Crunch
TRUE/FALSE
1. Demand fulfillment, as used in the case, would be considered a primary factor in how supply chain
management is customer-driven.
ANS: T
PTS: 1
KEY: CB&E Model Distribution

OBJ: 13-1
TOP: AACSB Reflective Thinking
MSC: BLOOMS Level I Knowledge

2. The demand management process also includes hiring new drivers to replace those laid off.
ANS: F
Demand management is largely concerned with smoothing out inventory with customer desires.
PTS: 1
OBJ: 13-3
KEY: CB&E Model Product

TOP: AACSB Reflective Thinking

MSC: BLOOMS Level I Knowledge

3. The supply chain team is strictly an internal operation. It would hardly include an owner-operator truck
driver.
ANS: F
Supply chain teams typically cut across organizational boundaries, embracing all parties who
participate in moving the product to market.
PTS: 1
OBJ: 13-4
KEY: CB&E Model Distribution

TOP: AACSB Reflective Thinking

MSC: BLOOMS Level I Knowledge

4. Shippers of natural resources who contract with intermodal shipping, such as Maersk and BNSF, also
benefit from economies of scale.
ANS: T
PTS: 1
KEY: CB&E Model Pricing

OBJ: 13-4
TOP: AACSB Reflective Thinking
MSC: BLOOMS Level I Knowledge

MULTIPLE CHOICE
1. __________ logistics is the best description for the transportation companies discussed in the case.
a. Just-in-Time
b. Outsourcing
c. Motor carrier
d. Contract
e. all of the above
ANS: D
With an improved economy, supply chain managers will be contracting with the transportation
companies that will transport their offerings to the marketplace.
PTS: 1
OBJ: 13-5
KEY: CB&E Model Distribution

TOP: AACSB Reflective Thinking

MSC: BLOOMS Level II Comprehension

2. Which of following integration types in supply chain management would probably not include
contractual motor carrier and warehouse services?
a. measurement integration
b. relationship integration
c. material and service integration
d. technology and planning integration
e. internal operations integration
ANS: E
Contractual logistics partners would not be considered internal operations.
PTS: 1
OBJ: 13-2
KEY: CB&E Model Strategy

TOP: AACSB Reflective Thinking

MSC: BLOOMS Level II Comprehension

3. When the amount of inventory to be shipped is more than motor carriers can transport, supply chain
managers face __________.
a. an increase in competition for logistics services
b. fewer truck drivers
c. capacity crunch
d. problems in demand fulfillment
e. all of the above
ANS: E
All of the answers are symptomatic of an insufficient supply of logistics workers.
PTS: 1
OBJ: 13-1
KEY: CB&E Model Distribution

TOP: AACSB Reflective Thinking

MSC: BLOOMS Level II Comprehension

4. Those firms that warehouse, pick orders, and ship directly to the customer as well as hire and manage
logistics workers are known as __________ companies.
a. 3PL
b. flow management
c. ownerd. order fulfillment
e. all of the above
ANS: A
Third-party logistics firms is contracted to manage a firms order fulfillment process from beginning to
end.
PTS: 1
OBJ: 13-5
KEY: CB&E Model Distribution

TOP: AACSB Reflective Thinking

MSC: BLOOMS Level II Comprehension

5. Which of the following criteria might be least affected by an economic upswing in regard to motor
carriers.
a. capability
b. cost
c. transit time
d. accessibility
e. reliability
ANS: D
Accessibilitya carriers ability to move goods over a specific route or networkhas the least to do
with labor supply.

PTS: 1
OBJ: 13-4
KEY: CB&E Model Distribution

TOP: AACSB Reflective Thinking

MSC: BLOOMS Level II Comprehension

6. Seamless is a favorite buzzword of supply chain management proponents, especially those who
advocate JIT. Given the case, what disruption was left out of the chapter discussion?
a. natural disasters
b. human resources
c. customer demand
d. flow reversal
e. none of the above
ANS: B
During economic downturns, workers leave the transportation industry and replacing them would be a
disruption.
PTS: 1
OBJ: 13-1
KEY: CB&E Model Product

TOP: AACSB Reflective Thinking

MSC: BLOOMS Level II Comprehension