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Assignment on Transportation:
Study the text in this folder and answer the following questions.
2. Compare and contrast the transport principles of economy of scale and economy of
distance. How do they combine to create efficient transportation?
3. Identify basic modes of transportation, their costs, and their suitability for different types
of products.
4. Describe the factors driving transportation costs including distance, volume, density,
stow-ability, handling, liability, and market factors.
4 __________ are the most common mode of shipping fresh flowers long distances.
A. Pipeline
B. Waterways
C. Motor vehicle
D. Airways
E. Railroads
5 Which is correct regarding tapering rates?
A. The principle is based on the carriers ability to spread certain fixed cost over a
greater number of miles
B. Transportation rates increase with distance directly in proportion to the
distance
C. In a one-source, one-market situation, the impact of the tapering rate will be to
pull the location toward a point midway between the source and the market
D. All of the above
7 Which is usually the most important determinant for selecting a particular carrier from
within one mode?
A. Transit time reliability
B. Equipment availability
C. Line haul services
D. Claims processing
8 The economy of distance principle states that the larger the distance, the less the
transportation costs per unit of distance
A. True
B. False
9 Railroads offer low cost for long hauls of large volumes, but they have accessibility
limitation and long transit time.
A. True
B. False