TPT CHAPTER 1 (DPL30053)

What is the primary purpose of transportation?

• To reduce costs

• To move products from origin to destination

• To enhance technology

• To create jobs

What does 'economy of scale' refer to in transportation?

• Higher costs for larger shipments

• Higher demand for smaller shipments

• Lower costs per unit as shipment size increases

• Increased delivery times

What is the significance of 'place utility' in transportation?

• It increases the value of goods by moving them to demand locations

• It ensures products are available at the right time

• It focuses on international trade only

• It reduces transportation costs

Which role does transportation play in the logistics system?

• It reduces the number of suppliers

• It eliminates the need for inventory

• It increases product prices

• It connects suppliers and consumers

Who is responsible for initiating the shipment of goods?

• Carrier

• Consignee

• Shipper

• Freight forwarder

Which type of carrier provides services to the general public for a fee?

• Contract carrier

• Freight forwarder

• Private carrier

• Common carrier

What is a key benefit of an efficient transportation system?

• Timely delivery of goods

• Increased environmental impact

• Reduced job opportunities

• Higher holding costs

What does 'economy of distance' refer to?

• Higher costs for longer distances

• Lower costs per unit as distance increases

• Higher demand for short-distance shipments

• Increased delivery times with distance

What does 'cost service trade-off' imply?

• Companies must balance cost and service quality

• Lower costs always lead to lower service quality

• Service quality is irrelevant to transportation

• Higher costs always lead to better service

Which of the following is a function of temporary storage in transportation?

• Storage that increases costs

• Permanent storage of goods

• Storage during shipment

• Storage for long-term inventory