1. How does a LASH ship differ from a ship that offers container service?
The LASH ship travel inland waterways
Container service involves only inland waterways
The LASH ship carries loaded barges
Container service is for make‑bulk shipments

2. How does a LASH ship differ from a ship that offers container service?
The LASH ship carries loaded barges

3. Which of the following is not a legally defined form of transportation?
Common carriers
Contract carriers
Exempt carriers
Private carriers
Preferred carriers

4. Which of the following is not a legally defined form of transportation?
Preferred carriers

5. Generally, at higher volumes of throughput, a firm should utilize:
A public warehouse
A federal warehouse
A local warehouse
A private warehouse

6. Generally, at higher volumes of throughput, a firm should utilize:
A private warehouse

7. All of the following are true of Charter (or Tramp) shipping industry, except:
Consist mostly of shiploads of one commodity
Very cost oriented
Usually meant for a single shipper
Operate on fixed routes

8. All of the following are true of Charter (or Tramp) shipping industry, except:
Operate on fixed routes

9. Which charter vessel arrangement transfer full control of the ship to the charterer?
Voyage
Time
Demise
Liner

10. Which charter vessel arrangement transfer full control of the ship to the charterer?
Demise

11. Three primary forms of ship chartering are used
Three primary forms of ship chartering are used. Which charter form has the ship owner renting the vessel for a long period of time and the chartering party (or the shipper) furnishing the crew and physically operating the vessel?
One‑way voyage charter
Two‑way voyage charter
Time charter
Bareboat or demise charter

12. Three primary forms of ship chartering are used
Three primary forms of ship chartering are used. Which charter form has the ship owner renting the vessel for a long period of time and the chartering party (or the shipper) furnishing the crew and physically operating the vessel?
Bareboat or demise charter

13. When the terms of shipment are "CIF” (Cost, Insurance, Freight), the SELLER is responsible for all costs of the shipment except:
Export clearance and documentation
Inland freight, in seller’s own country
Loading on vessel in seller’s country
Ocean freight
Unloading vessel in buyer’s country

14. When the terms of shipment are "CIF” (Cost, Insurance, Freight), the SELLER is responsible for all costs of the shipment except:
Unloading vessel in buyer’s country

15. Which category of ocean shipping offers common carrier service, sailing on set schedules over specified sea routes?
Liner service
Charter vessels
Private vessels
Demise charter vessels

16. Which category of ocean shipping offers common carrier service, sailing on set schedules over specified sea routes?
Liner service

17. What are the required inputs for an MRP?
Production planning file, inventory status file, master production schedule
Production planning file, master production schedule, bill of materials
Master production schedule, bill of materials, customer order file
Master production schedule, bill of materials, inventory status file

18. What are the required inputs for an MRP?
Master production schedule, bill of materials, inventory status file

19. Capacity of ships, in general, is most likely to be defined in terms of
Deadweight tons (DWT)
Net registered volume (NRV)
Bale cubic (BC)
Ship long tons (SLT)
Measurement ship tons (MST)

20. Capacity of ships, in general, is most likely to be defined in terms of
Deadweight tons (DWT)

21. The cost structure of liner operations is
Largely fixed.
Largely variable.
Evenly balanced between fixed and variable.
Largely common and variable.

22. The cost structure of liner operations is
Largely fixed.

23. All of the following are true of the Liner shipping industry, except:
Operate on regular schedules
Operate on regular routes
Usually meant for a single shipper
Rates are published
Very service oriented

24. All of the following are true of the Liner shipping industry, except:
Usually meant for a single shipper

25. The objectives of stockless purchasing include all of the following except:
Lower inventory levels
Reduce administrative cost and paperwork
Increase the number of suppliers
Provide for timely delivery of material directly to the User.
Standardize purchase items where possible

26. The objectives of stockless purchasing include all of the following except:
Increase the number of suppliers

27. Container ship capacity is most likely to be defined in terms of
Deadweight tons (DWT)
Net registered tons (NRT)
Bale cubic (BC)
TEU’s

28. Container ship capacity is most likely to be defined in terms of
TEU’s

29. According to Lardner's Law (also referred to as the law of squares in transportation and trade), if the transportation cost is cut in half the relevant market area is increased
2 times
4 times
.5 times
Stays the same

30. According to Lardner's Law (also referred to as the law of squares in transportation and trade), if the transportation cost is cut in half the relevant market area is increased
4 times

31. Demand for an item increases 10 percent, and the value of each unit increases 10 percent. What is the effect on EOQ (assuming everything else remains the same)?
EOQ increases 10 percent
EOQ increases 20 percent
EOQ decreases 10 percent
EOQ stays the same

32. Demand for an item increases 10 percent, and the value of each unit increases 10 percent. What is the effect on EOQ (assuming everything else remains the same)?
EOQ stays the same

33. Rollers Passers Progressors Tracers
Rail computer systems identify cars for reconsignment and diversions. What are these cars called?
Rollers
Passers
Progressors
Tracers

34. Rail computer systems identify cars for reconsignment and diversions
Rail computer systems identify cars for reconsignment and diversions. What are these cars called?
Rollers

35. What is a pro-number?
The carrier name identification
A commodity code
A location code
A shipment identification numbers
The electronic transfer of funds

36. What is a pro-number?
A shipment identification numbers

37. Quality attributes of carrier service include all of the following except?
Modal selection
Transit time reliability
Accuracy of shipment billing
Loss and damage experience

38. Quality attributes of carrier service include all of the following except?
Modal selection

39. What was the purpose of the rule of rate making in the Transportation Act of 1920?
To establish upper limits on motor carrier rates
To eliminate discrimination
To establish set criteria for water carrier rate making
To allow the railroads a fair return on their investment

40. What was the purpose of the rule of rate making in the Transportation Act of 1920?
To allow the railroads a fair return on their investment

41. Which of the following best describes the atmosphere of the federal control of transportation from 1887 to 1920?
Positive; developing a strong transportation system
Restrictive; controlling the railroad monopoly
Adequate; helping shippers and carriers equally
Ambivalent; aiding neither shippers or carriers

42. Which of the following best describes the atmosphere of the federal control of transportation from 1887 to 1920?
Restrictive; controlling the railroad monopoly

43. Entry regulations are established in transportation to control which of the following?
Excessive rates
Excessive competition
Monopolistic abuses
The recapture of excess profits

44. Entry regulations are established in transportation to control which of the following?
Excessive competition

45. The Transportation Act of 1920 provided that in the event a railroad made more than the prescribed return on investment, one-half of the excess was to be paid off to the ICC. What was this provision called?
The recapture clause
The refund clause
The rule of rate making
The contingency clause

46. The Transportation Act of 1920 provided that in the event a railroad made more than the prescribed return on investment, one-half of the excess was to be paid off to the ICC. What was this provision called?
The recapture clause

47. What did the 3R Act establish?
Amtrak
Conrail
Government control over Amtrak
Federal regulation of the pipeline

48. What did the 3R Act establish?
Conrail

49. Which of the following created the Interstate Commerce Commission?
The Commission Organization Act
The Act to Regulate Commerce
The Granger Law
The Transportation Act of 1920

50. Which of the following created the Interstate Commerce Commission?
The Act to Regulate Commerce

51. Which of the following is correct regarding the zone of reasonableness established for air carriers using the standard industry level as a basis?
Above 5-10 percent, below 50 percent
Above percent, below 50 percent
Above 50 percent, below 5-10 percent
Above 50 percent, below percent

52. Which of the following is correct regarding the zone of reasonableness established for air carriers using the standard industry level as a basis?
Above 5-10 percent, below 50 percent

53. The motor carriers zone of rate flexibility allows the carrier to increase or decrease rates by which percent without ICC approval? 5 7 9 10

54. The motor carriers zone of rate flexibility allows the carrier to increase or decrease rates by which percent without ICC approval? 10

55. Which mode of transportation is excluded from the declaration of national transportation policy?
Air
Motor
Rail
Water

56. Which mode of transportation is excluded from the declaration of national transportation policy?
Air

57. In the early years of the airline industry, what was the major revenue source of the airlines?
Air freight
Passengers
U.S. Postal Service subsidies
WWI troop movements for the DoD

58. In the early years of the airline industry, what was the major revenue source of the airlines?
U.S. Postal Service subsidies

59. The only true form of nationalization in the U. S
The only true form of nationalization in the U.S. transportation system is:
Amtrak
The Alaska Railroad
Conrail
The U.S. Post Office

60. The only true form of nationalization in the U. S
The only true form of nationalization in the U.S. transportation system is:
The Alaska Railroad

61. What is the relationship between the movement and storage elements of the logistics system?
Negative and indirect
Negative and direct
Positive and indirect
Positive and direct

62. What is the relationship between the movement and storage elements of the logistics system?
Positive and direct

63. Which of the following is a charge levied by a motor carrier on a shipper for holding carrier equipment beyond an acceptable time?
Dunnage
Demurrage
Detention
Debarkation

64. Which of the following is a charge levied by a motor carrier on a shipper for holding carrier equipment beyond an acceptable time?
Detention

65. Which segment of the pipeline industry has the largest number of miles of intercity pipelines?
Natural gas
Oil
Gathering lines
Trunk lines

66. Which segment of the pipeline industry has the largest number of miles of intercity pipelines?
Natural gas

67. Which of the following pairs are only for-hire carriers?
Company-owned and exempt carriers
Regulated and private carriers
Exempt and private carriers
Regulated and exempt carriers

68. Which of the following pairs are only for-hire carriers?
Regulated and exempt carriers

69. Which is the proportion of variable costs to fixed costs in the cost structure of the air carriers?
40/60
60/40
80/20
20/80

70. Which is the proportion of variable costs to fixed costs I the cost structure of the air carriers?
80/20

71. Class I railroads carry what percentage of total intercity ton-miles of freight transported by mode?50 60 75 98

72. Class I railroads carry what percentage of total intercity ton-miles of freight transported by mode?98

73. Over 50% of railroads’ revenue dollar is expended for?
Maintenance “way” expenses
Labor costs
Depreciation
Fuel costs

74. Over 50% of railroads’ revenue dollar is expended for?
Labor costs

75. Assuming the cost to place an order is constant, increasing Q
Assuming the cost to place an order is constant, increasing Q* causes annual order cost to:
Decrease
Increase
Remain the same
Cannot be determined

76. Assuming the cost to place an order is constant, increasing Q
Assuming the cost to place an order is constant, increasing Q* causes annual order cost to:
Decrease

77. As customer service levels approach higher levels (80-90%)), required inventory levels begin to _______at a(n)________ rate.
Increase; increasing
Increase; decreasing
Decrease; decreasing
Decrease; increasing

78. As customer service levels approach higher levels (80-90%)), required inventory levels begin to _______at a(n)________ rate.
Increase; increasing

79. Which is an impossible description of raw material?
Ubiquitous and pure
Weight losing and ubiquitous
Pure and localized
Weight losing and pure
None of the above

80. Which is an impossible description of raw material?
Weight losing and pure

81. Demurrage is a charge for:
Penalty charge for going beyond normal load/unloading time
Penalty charge for being late with delivery
Penalty charged for freight audits
Penalty charge when a rate shark examines all paid freight bills and spots overpayment due to wrong classification, wrong classification, wrong weight, or duplicate payment

82. Demurrage is a charge for:
Penalty charge for going beyond normal load/unloading time

83. FAK rates make the most strategic sense for companies shipping:
Heavy, bulky items
A variety of different types and classes of items
Light, but small items
One or two different types and classes of items

84. FAK rates make the most strategic sense for companies shipping:
A variety of different types and classes of items

85. We can compare the cost of shipping at a higher volume than actual weight to realize a lower rate and lower shipping cost of shipping at the actual weight by determining the weight break formula:
LV rate * WB = HV rate * MW
WB * LV rate = MW * HV rate
HV rate * LV rate = WB * MW

86. We can compare the cost of shipping at a higher volume than actual weight to realize a lower rate and lower shipping cost of shipping at the actual weight by determining the weight break formula:
WB * LV rate = MW * HV rate

87. Which refers to a situation where a charge is levied by a motor carrier on a shipper for holding carrier equipment beyond an acceptable loading or unloading time?
Dunnage
Demurrage
Detention
Debarkation

88. Which refers to a situation where a charge is levied by a motor carrier on a shipper for holding carrier equipment beyond an acceptable loading or unloading time?
Detention

89. What is the load factor for a month that has an air carrier with a plane that holds 120 pax and carries 75 pax each trip? 75
120
62.5
1.6

90. What is the load factor for a month that has an air carrier with a plane that holds 120 pax and carries 75 pax each trip?
62.5

91. You look at a map and all you see is Interstates I-15 and I-94, which region are you looking at?
Northeastern
Southeastern
Northwestern
Southwestern

92. You look at a map and all you see is Interstates I-15 and I-94, which region are you looking at?
Northwestern

93. Which of the following is the motor carrier’s fractional share of the transportation freight market based on revenue ton-miles?
1/8
1/4
1/3
1/2

94. Which of the following is the motor carrier’s fractional share of the transportation freight market based on revenue ton-miles?
1/4

95. With what type of purchase would you need to identify all possible suppliers?
A straight rebuy
A modified rebuy
A new buy
Routine purchase

96. With what type of purchase would you need to identify all possible suppliers?
A new buy

97. The average inventory of XYZ Company is valued at $500,000
The average inventory of XYZ Company is valued at $500,000. The annual carrying cost of carrying the inventory is 20 percent. Which is the annual cost of carrying inventory?
$50,000
$100,000
$200,000
$500,000

98. The average inventory of XYZ Company is valued at $500,000
The average inventory of XYZ Company is valued at $500,000. The annual carrying cost of carrying the inventory is 20 percent. Which is the annual cost of carrying inventory?
$100,000

99. All of the following are assumptions of the EOQ except:
Constant and known rate of demand
Consistent lead time
No stock-outs allowed
Capital availability is limited
No inventory in transit

100. All of the following are assumptions of the EOQ except:
Capital availability is limited

101. All the following are inventory risk costs except:
Obsolescence
Taxes
Damage
Shrinkage
Relocation costs

102. All the following are inventory risk costs except:
Taxes

103. How do carrying costs and order costs vary in the simple EOQ model?
According to the time of the year and seasonality of demand
Directly
Inversely
Not at all

104. How do carrying costs and order costs vary in the simple EOQ model?
Inversely

105. Full cost equals $10 million
Full cost equals $10 million. Variable cost of the inventory is 78% of the full cost. If inventory carrying cost is 30%, then the cost of carrying the inventory investment for one year is:
$7.8 million
$3.0 million
$2.3 million
$10 million
None of the above are correct

106. Full cost equals $10 million
Full cost equals $10 million. Variable cost of the inventory is 78% of the full cost. If inventory carrying cost is 30%, then the cost of carrying the inventory investment for one year is:
$2.3 million

107. Using the fixed order quantity model under conditions of certainty, which is the reorder point if lead time is a constant 5 days, and yearly demand is 10,000 units (assume 250 working days in the year)?
100
200
400
5,000

108. Using the fixed order quantity model under conditions of certainty, which is the reorder point if lead time is a constant 5 days, and yearly demand is 10,000 units (assume 250 working days in the year)?
200

109. Sinclair Machinery imported 300 engines from a manufacturer in France
Sinclair Machinery imported 300 engines from a manufacturer in France. The import duty paid was $1000. Finding no market for the engines, Sinclair re-exported the engines to Brazil and applied for a drawback. How much of the paid duty will Sinclair receive back?
$100
$500
$990
None, duty paid cannot be refunded

110. Sinclair Machinery imported 300 engines from a manufacturer in France
Sinclair Machinery imported 300 engines from a manufacturer in France. The import duty paid was $1000. Finding no market for the engines, Sinclair re-exported the engines to Brazil and applied for a drawback. How much of the paid duty will Sinclair receive back?
$990