C++ chapter 14

习题答案PrinciplesofCorporateFinance第⼗版Chapter14 CHAPTER 14An Overview of Corporate Financing Answers to Problem Sets1. a. Falseb. Truec. True2. a. 40,000/.50 = 80,000 sharesb. 78,000 sharesc. 2,000 shares are held as Treasury stockd. 20,000 sharese. See table belowf. See table below3. a. 80 votesb. 10 X 80 = 800 votes.4. a. subordinatedb. floating ratec. convertibled. warrante. common stock; preferred stock.5. a. Falseb. Truec. False6. a. Par value is $0.05 per share, which is computed as follows:$443 million/8,863 million sharesb. The shares were sold at an average price of:[$443 million + $70,283 million]/8,863 million shares = $7.98c. The company has repurchased:8,863 million – 6,746 million = 2,117 million sharesd. Average repurchase price:$57,391 million/2,117 million shares = $27.11 per share.e. The value of the net common equity is:$443 million + $70,283 million + $44,148 million – $57,391 million= $57,483 million7. a. The day after the founding of Inbox:Common shares ($0.10 par value) $ 50,000Additional paid-in capital 1,950,000Retained earnings 0Treasury shares 0Net common equity $ 2,000,000b. After 2 years of operation:Common shares ($0.10 par value) $ 50,000Additional paid-in capital 1,950,000Retained earnings 120,000Treasury shares 0Net common equity $ 2,120,000c. After 3 years of operation:Common shares ($0.10 par value) $ 150,000 Additional paid-in capital 6,850,000Retained earnings 370,000Treasury shares 0Net common equity $ 7,370,0008. a.Common shares ($1.00 par value) $1,008Additional paid-in capital 5,444Retained earnings 16,250Treasury shares (14,015)Net common equity $8,687b.Common shares ($1.00 par value) $1,008Additional paid-in capital 5,444Retained earnings 16,250Treasury shares (14,715)Net common equity $7,9879. One would expect that the voting shares have a higher price because theyhave an added benefit/responsibility that has value.10. a.Gross profits $ 760,000Interest 100,000EBT $ 660,000Tax (at 35%) 231,000Funds available to common shareholders $ 429,000b.Gross profits (EBT) $ 760,000Tax (at 35%) 266,000Net income $ 494,000Preferred dividend 80,000Funds available to common shareholders $ 414,00011. Internet exercise; answers will vary.12. a. Less valuableb. More valuablec. More valuabled. Less valuable13. Answers may differ. Some key events of the financial crisis through the end of2008 include:June 2007: Bear Stearns pledges $3.2 billion to aid one of its ailing hedge funds Sept. 2007: Northern Rock receives emergency funding from the Bank of England Oct. 2007: Citigroup begins a string of writedowns based on mortgage losses Dec. 2007: Fed establishes Term Auction Facility linesJan. 2008: Ratings agencies threaten to downgrade Ambac and MBIA (major bond issuers)Feb. 2008: Economic stimulus package signed into lawMar. 2008: JPMorgan purchases Bear Stearns with support from the FedMar. 2008: SEC proposes ban on naked short sellingJuly 2008: FDIC takes over IndyMac BankSept. 2008: Lehman forced into bankruptcyB of A purchases Merrill Lynch10 banks create $70 billion liquidity fundAIG debt downgradedRMC money market fund “breaks the buck”Treasury bailout plan voted down in the HouseOct. 2008: 9 large banks agree to capital injection from TreasuryRevised bailout plan passes in HouseConsumer confidence hits lowest point on recordThe NY Fed has an excellent timeline of events at:/doc/24f5ef393968011ca30091d5.html /research/global_economy/Crisis_Timeline.pdf14. Answers will differ. Some purported causes of the financial crisis include:Long periods of very low interest rates leading to easy credit conditionsHigh leverage ratiosThe bursting of the US housing market bubbleHigh rates of default on subprime mortgagesMassive losses on investments in mortgage backed securitiesOpaque derivative markets and amplified losses through credit default swaps High rates of unemployment and job losses 15.a.For majority voting, you must own or otherwise control the votes of a simple majority of the shares outstanding, i.e., one-half of the shares outstanding plus one. Here, with 200,000 shares outstanding, you must control the votes of 100,001 shares. b.With cumulative voting, the directors are elected in order of the total number of votes each receives. With 200,000 shares outstanding and five directors to be elected, there will be a total of 1,000,000 votes cast. To ensure you can elect at least one director, you must ensure that someone else can elect at most four directors. That is, you must have enough votes so that, even if the others split their votes evenly among five other candidates, the number of votes your candidate gets would be higher by one.Let x be the number of votes controlled by you, so that others control (1,000,000 - x) votes. To elect one director:Solving, we find x = 166,666.8 votes, or 33,333.4 shares. Because there are no fractional shares, we need 33,334 shares.15x000,000,1x +-=。

Chapter 14 promoting productI Multiple Choice14.1To make consumers aware of the product, promotion can be used when a new product is:a)elimi nated ・b)introduced to the market・c)being developed・d)obsolete ・e)at the maturity phase.An swer: (b)14.2Promotion may be used on a long-term basis in order to>rotect a product's:a)failure rate.b)Research and development・c)image and market share・d)purchase discounts.e)sales discounts・Answer: (c)14.3The methods of promotion include the following except for:a)advertising •b)personal selling.c)sales promotion.d)purchasing ・e)public relations.Answer: (d)14.4Ads that promote the firm, rather than a specific product, are classified as:a)product advertising.b)industry advertising.c)brand advertising.d)institutional advertising・e)public relations.Answer: (d)14.5Types of advertising in elude the following except for:a)newspapers ・b)magazines ・c)radio.d)television *An swer: (e)e)marketing research.14.6The following are forms of advertising except for:a)direct mail.b)telemarketing ・c)go ver nme nt publicati ons.d)computer online services・e)outdoor ads.Answer: (c)14.7Commercials that are televised separately rather than within a show are:a)personal sellingb)in fomercialsc)publicity.d)public relations.e)local advertisements.An swer: (b)14.8Advertisements that are often displayed on buses and on the roofs of taxi cabs are:a)promotions.b)public relations.c)personal selling.d)sales promotions.e)transportation ads・Answer: (e)14.9 A tech nique that requires a pers onal effort to in flue nee a con sumer's dema nd for a product is:a)Personal selling.b)product! on.c)finance ・d)accounting.e)electronic mail.Answer: (a)14.10Sales people that sell on an in dustrial and in dividual basis generally perform the following steps except for:a)identify the target market・b)con tact pote ntial customers ・c)production control.d)answer customer questions.e)follow up.Answer: (c)14.11The set of customers that initially represents all households, but is then reduced to those consumers that call back in response to an ad is the:a)product!on market*b)advertising market.c)promotion market・d)account!ng market.e)target market.Answer: (e)14.12To make (or close) a sale while the product's advantages are still in the minds of potential customers, salespeople may offer:a)product!on advice・b)incentives to purchase・c)advertising literature.d)publicity of the product.e)personal advice・Answer: (b)14.13Firms can encourage consumers to repeatedly purchase the same brand through the use of:a)coupons•b)electronic mail.c)product!on tours・d)plant visitati ons.e)market segmentation.Answer: (a)14.14To attract consumers who are in the store for other reasons, many stores create special:a)target markets・b)market segments.c)displays ・d)marketing research・e)production prototypes・Answer: (c)14.15To make the consumer aware of the product's qualities, affirm might use:a)psychographic studies・b)marketing segmentation.c)production prototypes・d)samplin g.e)financial analysis.Answer: (d)14.16To enhance the image of a product, or of the firm itself, firms attempt to develop good:a)employee morale・b)Competitive reactions.c)public relations.d)on the job training.e)in dustry standards ・Answer: (c)14.17 A brief written announcement about the firm by that firrrT the media is a(n):a)advertisement.b)sales promotion.c sales con tract.d)business con tract.e)news release・Answer: (e)14.18An oral announcement about the firm provided by that firm to the media is a(n):a)Press conference・b)advertisement.c)sales promotion.d)news release.e)free sample.Answer: ( a)14.19Firms must consider the characteristics of their target market and their promotion budget when determining the optimal:a)marketing research program・b)free sample.c)inventory control.d)Promotion mix.e)sales con test.Answer: (d)14.20When a product is promoted through the distribution channel as a result of consumer dema nd, it is called a:a)push strategyb)free sampli ng strategyc)sales promotion strategy.d)consumer rebate.e)pull strategy.answer: (e)14.21When producers promote their products to wholesalers or retailers, their promotion effort is called a:a)pull strategy.b)consumer rebate・c)Push strategy・d)Free sampling strategy.e)sales promotion strategy.Answer: (c)14.22The phase of the product life cycle where customers are persuaded to try the product is the:a)trial and error phase・b)maturity phase.c)saturation phase・d)growth phase・e)decline phase・Answer: (d)II True /false14.23Public relati ons is the relati on ship with the public, which can be used to influence con sumers ・Answer: True14.24Bra nd advertisi ng is a nonpers onal sales prese ntati on about a specific in stitutio n. Answer: False14.25The most effective type of advertising for all products is through newspapers.Answer: False14.26Direct-mail advertising is frequently used by local service firms, such as realtors, home repair firms, and lawn service firms.An swer: True14.27 A key to long-term selling success is the attention given to purchasers even after the sale is made・Answer: True14.28Some promotional coupons are not provided to consumers until repeated purchases have been made・Answer: TrueIII Cross Word Puzzle14. 29 _____ is the act of in creasing the accepts nee of a specific product or bra nd.Answer: Promotion1430 The _______________ is the combi nation of promoti on methods that a firm uses to in crease the accepta nee of its products.Answer: promotion mix1431 _______ is inten ded to dem on st rate a bra nd〃s superiority by comparison to other competitive bra nds.Answer: Comparative advertising14.32 ____ represent a potential refund by the manufacturer to the consumer. Answer: Rebates1433 _____ is a gift or prize provided to consumers who purchase a specific product.Answer: premium。

Chapter14 Ethnicity and RaceMultiple Choice Quiz1. What is the difference between ethnicity and race? CA) Race is a biological reality, while ethnicity is a cultural construction.B) Ethnicity is the politically correct term for race.C) A race is an ethnic group that is assumed to have a biological basis.D) The terms are synonymous.E) An ethnicity is a racial group that is assumed to have a biological basis.2. Which of the following is an ethnic term? BA) NegroidB) HispanicC) CaucasoidD) WhiteE) Mongoloid3. What is status? EA) Status is something you acquire through enculturation.B) Status encompasses those things you wish you had, but don't.C) Status refers to the personal qualities that you inherit from your parents.D) Status encompasses all of the positions that people above you occupy, but not the positions that people below you occupy.E) Status encompasses the various positions that people occupy in society.4. What are the two kinds of status discussed in the textbook? DA) achieved and stuntedB) ascribed and circumscribedC) achieved and circumscribedD) achieved and ascribedE) ascribed and stunted5. Which of the following is an achieved status? AA) fatherB) siblingC) ageD) daughterE) African-American6. Which of the following is an ascribed status? AA) cousinB) athleteC) friendD) college studentE) singer7. Social race differs from biological race because: DA) a biological race is assigned to groups in a culturally arbitrary manner.B) social race refers to meaningful genetic differences between populations.C) social race is a politically correct term for biological race.D) social race is a cultural construction that is based on arbitrary distinctions.E) There is no difference between social and biological race.8. Which of the following statements regarding hypodescent is not true? DA) It automatically places the children of a union or mating between members of different groups in the minority group.B) It is how race is determined in the U.S.C) It divided American society into groups that have been unequal in their access to wealth, power, and prestige.D) It has brought about the formation of fully functional intermediate racial categories.E) Its operation explains why the populations in the U.S. labeled "black" and "Native American" are growing.9. Which of the following statements regarding burakumin is true? CA) They are full citizens of Brazil.B) Their residences are dispersed in and among the residences of non-burakumin.C) They typically perform manual labor to make a living.D) They are physically and genetically different from the rest of the Japanese population.E) Their status as outcasts originated just after World War II.10. Which of the following statements regarding burakumin is not true? AA) They are full citizens of Brazil.B) They live in residentially segregated neighborhoods.C) They typically perform manual labor to make a living.D) They are physically and genetically identical to the rest of the Japanese population.E) Their status as outcasts can be traced back to the Tokugawa Period.11.Due to the lack of hypodescent in Brazil, what is happening to the number of people classified in intermediate racial categories? CA) The number of people classified in intermediate racial categories is declining.B) The number of people classified in intermediate racial categories has stayed the same over the last 100 years.C) The number of people classified in intermediate racial categories is increasing.D) Intermediate racial categories in Brazil have never played an important role.E) The number of people classified in intermediate racial categories is increasing, but not nearly as fast as the number of people classified in intermediate racial categories in the U.S.12. Which of the following groups is considered an "imagined community" today? DA) the FrenchB) the JapaneseC) the BraziliansD) the KurdsE) the Mexicans13. Which of the following statements regarding assimilation is not true? BA) Assimilation best describes the process by which immigrants are integrated into Brazilian society.B) Like Brazil, the U.S. is an assimilationist society.C) Assimilation is best represented by the "melting pot" model.D) Assimilation involves minority groups giving up their old traditions and adopting the patterns and norms of the host country.E) Assimilationist societies generally lack ethnic neighborhoods.14. A plural society: AA) combines ethnic contrasts and economic interdependence of the ethnic groups.B) as many different official religions.C) has many different official languages.D) is a society that has been colonized by more than one colonial power.E) is one in which ethnicities have been replaced by pluralities.15. De facto discrimination refers to: CA) the legally sanctioned policies and practices that harm a group and its members.B) the process of change in which a minority group is incorporated into the dominant culture to the point where it no longer exists as a separate cultural unit.C) practiced but not legally sanctioned discrimination.D) the combining of ethnic contrasts and economic interdependence of the ethnic groups.E) the ideological justification for outsiders to guide native peoples in specific directions.True or False1. The term "Hispanic" refers to a racial group. F2."Ethnicity" and "ethnic group" are just politically correct ways of talking about race. F3. The term nation used to be synonymous with ethnic group. T4. The "melting pot" model best describes the process of assimilation. T5. A refugee is a person who belongs to the dominant culture in a plural society. FEssay Quiz1. What is the situational negotiation of identity?2. What is an imagined community?3. What is assimilation?4. What is a plural society?5. How does a person's social status affect his or her racial classification in Brazil?Frequently Asked QuestionsWhat is the difference between an ethnic group and a race?Ans: An ethnic group of people share certain beliefs, values, habits, customs, and norms as well as a common language, religion, history, geography, and kinship. A race is an ethnic group that is assumed to have a biological basis. In the U.S., most people use these terms interchangeably, which blurs the important distinction: that a race is believed or assumed to have a biological basis, while an ethnicity does not. For example, we do not think that Italians tend to be good cooks because they have a gene for good cooking. However, statements like "white men can't jump" imply that white males lack some gene for jumping. The difference is due to fact that "Italian" is an ethnic group, while "white" is a racial term, and the qualities that characterize whites are assumed to have a biological basis.Is the U.S. a melting pot of cultures like we are taught in elementary school?Ans: The U.S. used to be a melting pot, but today it is more like a salad. The melting pot model best describes an assimilationist society in which minority groups are incorporated into the dominant culture to the point where they no longer exists as separate cultural units. All of the minority groups are blended into the dominant "flavor" of the melting pot, which represents the dominant culture. Is this what we see in the U.S. today? While minority groups in the U.S. have to adopt some of the cultural standards of the U.S., they are encouraged to maintain their own traditional beliefs, values, customs, language, and history. Multicultural societies socialize people into both the dominant national culture and an ethnic culture. As a result, a salad best represents multicultural societies like the U.S. because in a salad, each ingredient remains distinct, although they are all in the same bowl covered with the same dressing. In this model, the different ingredients represent different ethnic groups, while the dominant national culture is represented by the dressing and the bowl containing all of the ingredients.What are the different ways that ethnic diversity can be expressed?Ans: Ethnic diversity is generally either embraced and celebrated, or it is discouraged. Multicultural societies view ethnic diversity as desirable and as something to be encouraged. Assimilationist societies tend to view ethnic diversity as disruptive and as something that needs to be controlled. In certain instances, assimilation is de facto in that it is practiced, but not legally sanctioned. In other instances, assimilation is de jure, legally sanctioned or forced upon the minority groups. Examples of this include cultural colonialism, forcing other ethnic groups to participate in a different culture, and ethnocide, the attempt to destroy certain ethnic practices. The most extreme example of this is genocide, which is the deliberate elimination of a group through mass murder. It is important to understand that while multiculturalism is generally peaceful, it is not perfect. In the U.S., ethnic identities are often the target of prejudice and discrimination and, in certain instances, violence.What is hypodescent? Why is it important?Ans: Hypodescent is the rule that automatically assigns the children of a mixed union or mating between members of different socioeconomic groups to the less privileged group. This is important to understand because it is how race is determined in the U.S. Because of hypodescent, race in the U.S. is fixed at birth and does not change. Also, because of the way that hypodescent operates, the number of people classified as "black" or "Native American" is growing faster than the number of people classified as "white," because in order to be classified as "white," both of your parents have to be white. It is important to understand that this is not the only way in which race is assigned. Different cultures determine race in different manners.Why is it important to understand that social race is a cultural construction?Ans: Since human racial classifications have no basis in biology, they must be cultural constructions. By definition, cultural constructions are arbitrary in that they are created and maintained by each culture. As a result, cultural constructions are not fixed forever; rather they are dynamic and change over time and through space. For instance, are the notions of race found in the U.S. today the same as those that were in use 50 years ago? 100 years ago? 200 years ago? Are the notions of race found in urban parts of the U.S. today identical to the notions of race found in more rural parts of the U.S.? These differences exist because race is a cultural construct. The importance lies in the fact that as a cultural construction, race changes and can be changed. People actively use race and people can actively change how race is perceived. What role did Martin Luther King, Jr. play in changing American attitudes about race? What role did Jesse Owens and Jackie Robinson play in changing American attitudes about race?。

第十四章 碳族元素Chapter 14 The Carbon Family ElementsCarbon (C) Silicon (Si) Germanium (Ge) Stannum (Sn) Plumbum (Pb)§14-1 碳及其化合物 Carbon and its Compounds一、General Properties1．根据σ键的数目，碳可采取sp 、sp 2、sp 3杂化，其最大配位数为42．由于碳—碳单键的键能特别大，所以C －C 键非常稳定,具有形成均键(homochains)的倾向C －C N －N O －O F －F E (kJ·mol -1) 374 250 210 159 实 例H 3C －CH 3H 2N －NH 2HO －OH从碳到氮的单键键能的突减，是由于N 2分子中氮原子之间非键电子对排斥的缘故。

二、The Simple Substance1．在第二周期中，氟、氧和氮都以双原子分子存在：F 2、O 2和N 2；而碳存在多聚物，其理由为：O 2和N 2的多重键要比σ单键（均键）强得多如： ,E (kJ·mol -1) 494 ＞ 210 + 210 , 946 ＞ 250 + 250而：E (kJ·mol -1) 627 ＜ 374 + 374即C 2分子中的多重键比均链中的两个σ单键之和小，所以碳往往形成多原子均键，虽然在星际空间存在有C 2(g)分子。

2．Allotropes: diamond 、graphite 、fullerene (C 60、C 70)、carbin (carbon fibers) (1) 熵 S carbin ＞S graphite ＞S diamond(2) d C-C (nm): diamond ＞ graphite ＞ benzene ＞ ethylene ＞ carbin ＞ acethylene (3) C graphite → C diamond ∆r H m ＞0，∆r S m ＜0根据平衡，需要高压Pa 100.1106109⨯-⨯，(because of the insignificantreduction of volume)，升高温度不利于平衡的移动，但为了达到该过程可以接受的速率，反应温度大约在2000℃，近来已发明一种低压生产金刚石的方法：把金刚石晶种（seed ）放在气态碳氢化合物（甲烷methane ，ethane ）中，温度升高到1000℃，可以得到金刚石粉末或者crystal whiskers(4) C 60由12个正五边形和20个正六边形组成，每个碳原子以sp 3、sp 2杂化轨道与相邻的三个碳原子相连，使∠CCC 小于120︒而大于109︒28'，形成曲面，剩余的p 轨道在C 60球壳的外围和内腔形成球面π键，从而具有芳香性。

CHAPTER 14FORWARD AND FUTURES PRICESObjectives∙ To explain the economic role of futures markets∙ To show what information can and cannot be inferred from forward and futures prices.∙Outline14.1 Distinctions Between Forward and Futures Contracts14.2 The Economic Function of Futures Markets14.3 The Role of Speculators14.4 Relation Between Commodity Spot and Futures Prices14.5 Extracting Information from Commodity Futures Prices14.6 Spot-Futures Price Parity for Gold14.7 Financial Futures14.8 The Implied Risk-Free Rate14.9 The Forward Price Is Not a Forecast of the Spot Price14.10 Forward-Spot Parity with Cash Payouts14.11 Implied Dividends14.12 The Foreign-Exchange Parity Relation14.13 The Role of Expectations in Determining Exchange RatesSummary∙ Futures contracts make it possible to separate the decision of whether to physically store a commodity from thedecision to have financial exposure to its price changes.∙ Speculators in futures markets improve the informational content of futures prices and make futures marketsmore liquid than they would otherwise be.∙ The futures price of wheat cannot exceed the spot price by more than the cost of carry:∙ The forward-spot price parity relation for gold is that the forward price equals the spot price times the cost ofcarry:This relation is maintained by the force of arbitrage . ∙One can infer the implied cost of carry and the implied storage costs from the observed spot and forward prices and the risk-free interest rate. ∙ The forward-spot parity relation for stocks is that the forward price equals the spot price times 1 plus the risk-free rate less the expected cash dividend.This relation can therefore be used to infer the implied dividend from the observed spot and forward prices and the risk-free interest rate. ∙ The forward-spot price parity relation for the dollar/yen exchange rate involves two interest rates:where F is the forward price of the yen, S is the current spot price, r Y is the yen interest rate, and r $ is the dollarinterest rate. ∙ If the forward dollar/yen exchange rate is an unbiased forecast of the future spot exchange rate, then one caninfer that forecast either from the forward rate or from the dollar-denominated and yen-denominated risk-free interest rates.F S C -≤F S r s =++()1F S r D=+-()1F r S r Y11+=+$Solutions to Problems at End of ChapterForward Contracts and Forward-Spot Parity.1. Suppose that you are planning a trip to England. The trip is a year from now, and you have reserved a hotel room in London at a price of ₤50 per day. You do not have to pay for the room in advance. The exchange rate is currently $1.50 to the pound sterling.a.Explain several possible ways that you could completely hedge theexchange rate risk in this situation.b.Suppose that r₤=.12 and r$=.08. Because S=$1.50, what must theforward price of the pound be?c.Show that if F is $0.10 higher than in your answer to part b, therewould be an arbitrage opportunity.SOLUTION:a.Ways to hedge the exchange rate risk:Pay for the room in advanceBuy the pounds you will need in the forward market.Invest the present value of the rental payments in a pound-denominated riskless asset.对冲外汇风险的几种方法：提前对这个房间付款；在期货市场购买英镑；将与现期价值的租金同等的英镑投资于无风险资产。

Chapter 14Transportation in the Supply ChainTrue/False1. Transportation plays a key role in every supply chain because products areusually produced and consumed in the same location.Answer: FalseDifficulty: Easy2. Freight transportation costs in the United States amount to about 6 percent of theGDP.Answer: TrueDifficulty: Moderate3. The shipper is the party that requires the movement of the product between twopoints in the supply chain.Answer: TrueDifficulty: Moderate4. The carrier is the party that moves or transports the product.Answer: TrueDifficulty: Easy5. A distributor makes investment decisions regarding the transportationinfrastructure and then makes operating decisions to try to maximize the returnfrom these assets.Answer: FalseDifficulty: Hard6. A carrier uses transportation to minimize the total cost (transportation, inventory,information, and facility) while providing an appropriate level of responsiveness to the customer.Answer: FalseDifficulty: Hard7. The vehicle-related cost is incurred whether the vehicle is operating or not and isconsidered fixed for short-term operational decisions by the carrier.Answer: TrueDifficulty: Moderate8. Vehicle-related cost includes any cost associated with terminals, airport gates,and labor that are incurred whether vehicles are in operation or not.Answer: FalseDifficulty: Moderate9. Trip-related cost depends on the length and duration of the trip but isindependent of the quantity shipped.Answer: TrueDifficulty: Easy10. Trip-related cost includes loading/unloading costs and a portion of the fuel costthat varies with the quantity being transported.Answer: FalseDifficulty: Easy11. Overhead cost includes the cost of planning and scheduling a transportationnetwork as well as any investment in information technology.Answer: TrueDifficulty: Moderate12. A carrier’s decisions are affected by the prices that the market will bear, but notthe responsiveness it seeks to provide its target segment.Answer: FalseDifficulty: Moderate13. Transportation cost depends on the prices offered by different carriers and theextent to which the shipper uses inexpensive and slow, or expensive and fast,means of transportation.Answer: TrueDifficulty: Easy14. Rail is the dominant mode of freight transportation in the United States andaccounts for over 75 percent of the nation’s freight bill.Answer: FalseDifficulty: Moderate15. A milk run is a route in which a truck either delivers product from a single supplierto multiple retailers or goes from multiple suppliers to a single retailer.Answer: TrueDifficulty: Easy16. Milk runs reduce outbound transportation costs by consolidating large shipments.Answer: FalseDifficulty: Easy17. Companies should evaluate different transportation options in terms of variouscosts as well as revenues and then rank them according to coordinationcomplexity.Answer: TrueDifficulty: Hard18. The mode of transportation that results in the lowest transportation cost will lowertotal costs for a supply chain.Answer: FalseDifficulty: Moderate19. Ignoring inventory costs when making transportation decisions can result inchoices that worsen the performance of a supply chain.Answer: TrueDifficulty: Moderate20. Firms can significantly reduce the safety inventory they require by physicallyaggregating inventories in one location, which will also decrease transportationcost.Answer: FalseDifficulty: Moderate21. Temporal aggregation decreases a firm’s responsiveness because of shippingdelay but also decreases transportation costs because of economies of scalethat result from larger shipments.Answer: TrueDifficulty: Easy22. A firm can meet customer needs by using tailored transportation to provide theappropriate transportation choice based on customer and product characteristics, but at a higher cost.Answer: FalseDifficulty: Moderate23. Tailored transportation is the use of different transportation networks and modesbased on customer and product characteristics.Answer: TrueDifficulty: Easy24. The most important operational decision related to transportation in a supplychain is the routing and scheduling of deliveries.Answer: TrueDifficulty: Moderate25. The generalized assignment method is less sophisticated than the savings matrixmethod and usually results in better solutions when there are few deliveryconstraints to be satisfied.Answer: FalseDifficulty: Moderate26. The main disadvantage of the generalized assignment method is its simplicityand robustness.Answer: FalseDifficulty: Moderate27. The savings matrix method is simple enough to be easily modified to includedelivery time windows and other constraints, and robust enough to give areasonably good solution that can be implemented in practice.Answer: TrueDifficulty: ModerateMultiple Choice1. The movement of product from one location to another as it makes its way fromthe beginning of a supply chain to the customer’s hands is referred to asa. transportation.b. retailing.c. distribution.d. manufacturing.e. none of the aboveAnswer: aDifficulty: Moderate2. Transportation plays a key role in every supply chain becausea. products are normally produced and consumed in the same location.b. products are rarely produced and consumed in the same location.c. the cost of transportation is inconsequential.d. transportation is not a factor in determining profitability.e. none of the aboveAnswer: bDifficulty: Easy3. Freight transportation costs in the United States amount toa. about 60 percent of the GDP.b. about 16 percent of the GDP.c. about 6 percent of the GDP.d. less than 1 percent of the GDP.e. none of the aboveAnswer: eDifficulty: Hard4. The key players in any transportation that takes place within a supply chain area. the shipper and the receiver.b. the shipper and the supplier.c. the shipper and the manufacturer.d. the shipper and the carrier.e. none of the aboveAnswer: dDifficulty: Moderate5. The party that requires the movement of the product between two points in thesupply chain isa. the shipper.b. the supplier.c. the manufacturer.d. the carrier.e. the receiver.Answer: aDifficulty: Moderate6. The party that moves or transports the product isa. the shipper.b. the supplier.c. the manufacturer.d. the carrier.e. the receiver.Answer: dDifficulty: Moderate7. Investment decisions regarding the transportation infrastructure (rails,locomotives, trucks, airplanes, etc.) are the primary concern ofa. the shipper.b. the supplier.c. the manufacturer.d. the carrier.e. the receiver.Answer: dDifficulty: Moderate8. Which of the following uses transportation to minimize the total cost(transportation, inventory, information, and facility) while providing an appropriate level of responsiveness to the customer?a. the shipperb. the supplierc. the manufacturerd. the carriere. the receiverAnswer: aDifficulty: Moderate9. Which of the following is not a factor that affects carrier decisions?a. vehicle-related costb. fixed operating costc. trip-related costd. quantity-related coste. transportation costAnswer: eDifficulty: Moderate10. The cost a carrier incurs for the purchase or lease of the vehicle used totransport goods isa. vehicle-related cost.b. fixed operating cost.c. trip-related cost.d. quantity-related cost.e. overhead cost.Answer: aDifficulty: Easy11. The cost associated with terminals, airport gates, and labor that are incurredwhether vehicles are in operation or not isa. vehicle-related cost.b. fixed operating cost.c. trip-related cost.d. quantity-related cost.e. overhead cost.Answer: bDifficulty: Moderate12. The price of labor and fuel incurred for each trip independent of the quantitytransported is included ina. vehicle-related cost.b. fixed operating cost.c. trip-related cost.d. quantity-related cost.e. overhead cost.Answer: cDifficulty: Easy13. Loading/unloading costs and a portion of the fuel cost that varies with thequantity being transported is included ina. vehicle-related cost.b. fixed operating cost.c. trip-related cost.d. quantity-related cost.e. overhead cost.Answer: dDifficulty: Easy14. The cost of planning and scheduling a transportation network, as well as anyinvestment in information technology is included ina. vehicle-related cost.b. fixed operating cost.c. trip-related cost.d. quantity-related cost.e. overhead cost.Answer: eDifficulty: Moderate15. Which of the following costs should a carrier consider to be variable for strategicand planning decisions?a. trip-related costb. quantity-related costc. overhead costd. all of the abovee. none of the aboveAnswer: dDifficulty: Moderate16. Which of the following costs should a carrier consider to be variable foroperational decisions?a. vehicle-related costb. trip-related costc. quantity-related costd. all of the abovee. b and c onlyAnswer: eDifficulty: Moderate17. Which of the following costs should a carrier consider to be fixed for operationaldecisions?a. vehicle-related costb. trip-related costc. quantity-related costd. all of the abovee. b and c onlyAnswer: aDifficulty: Easy18. Which of the following is not a cost the shipper needs to consider when makingtransportation decisions?a. transportation costb. inventory costc. facility costd. quantity-related coste. processing costAnswer: dDifficulty: Moderate19. The total amount paid to various carriers for transporting products to customersisa. transportation cost.b. inventory cost.c. facility cost.d. processing cost.e. service level cost.Answer: aDifficulty: Easy20. The cost of holding inventory incurred by the shipper’s supply chain network isa. transportation cost.b. inventory cost.c. facility cost.d. processing cost.e. service level cost.Answer: bDifficulty: Easy21. The cost of various facilities in the shipper’s supply chain network isa. transportation cost.b. inventory cost.c. facility cost.d. processing cost.e. service level cost.Answer: cDifficulty: Easy22. The cost of loading/unloading orders, as well as other processing costsassociated with transportation, is considereda. transportation cost.b. inventory cost.c. facility cost.d. processing cost.e. service level cost.Answer: dDifficulty: Easy23. The cost of not being able to meet delivery commitments isa. transportation cost.b. inventory cost.c. facility cost.d. processing cost.e. service level cost.Answer: eDifficulty: Moderate24. Which mode of transportation is the most expensive?a. airb. truckc. raild. watere. pipelineAnswer: aDifficulty: Easy25. Which mode of transportation is the least expensive?a. airb. truckc. raild. watere. pipelineAnswer: dDifficulty: Moderate26. Which mode of transportation is the dominant form of freight transportation?a. airb. truckc. raild. watere. pipelineAnswer: bDifficulty: Easy27. Which mode of transportation is used primarily for petroleum and natural gas?a. airb. truckc. raild. watere. pipelineAnswer: eDifficulty: Easy28. Which of the following is not a design option for a transportation network?a. direct shipping networkb. direct shipping with milk runsc. all shipments via central DCd. shipping via DC using milk runse. All of the above are design options.Answer: eDifficulty: Easy29. Which transportation network design option has the elimination of intermediatewarehouses and its simplicity of operation and coordination as its majoradvantage?a. direct shipping networkb. direct shipping with milk runsc. all shipments via central DCd. shipping via DC using milk runse. tailored networkAnswer: aDifficulty: Easy30. Which transportation network design option establishes an extra layer betweensuppliers and retailers to store inventory and to serve as a transfer location?a. direct shipping networkb. direct shipping with milk runsc. all shipments via central DCd. shipping via DC using milk runse. tailored networkAnswer: cDifficulty: Moderate31. Which transportation network design option uses a combination of other optionsto reduce the cost and improve responsiveness of the supply chain?a. direct shipping networkb. direct shipping with milk runsc. all shipments via central DCd. shipping via DC using milk runse. tailored networkAnswer: eDifficulty: Easy32. What trade-offs do managers need to consider when making transportationdecisions?a. transportation cost versus inventory costb. transportation cost versus customer responsivenessc. inventory cost versus customer responsivenessd. all of the abovee. a and b onlyAnswer: eDifficulty: Moderate33. The fundamental supply chain decision(s) involving the trade-off betweentransportation and inventory costs is (are)a. choice of transportation mode.b. inventory aggregation.c. level of customer responsiveness.d. all of the abovee. both a and bAnswer: eDifficulty: Moderate34. Cheaper modes of transport typically havea. shorter lead times and smaller minimum shipment quantities.b. shorter lead times and larger minimum shipment quantities.c. longer lead times and smaller minimum shipment quantities.d. longer lead times and larger minimum shipment quantities.e. none of the aboveAnswer: dDifficulty: Easy35. Temporal aggregationa. is the process of combining orders across time.b. increases a firm’s responsiveness.c. decreases transportation costs because of economies of scale.d. all of the abovee. a and c onlyAnswer: aDifficulty: Moderate36. Tailored transportation is the use of different transportation networks and modesbased ona. customer density.b. customer distance from warehouse.c. customer size and location.d. all of the abovee. a and c onlyAnswer: dDifficulty: Moderate37. The most important operational decision related to transportation in a supplychain isa. minimizing cost of transportation.b. maximizing profitability of the supply chain.c. reducing the level of cycle inventory.d. the routing and scheduling of deliveries.e. none of the aboveAnswer: dDifficulty: Hard38. Which of the following are computational procedures that can be used to makedecisions regarding the routing and scheduling of deliveries?a. the savings matrix methodb. the generalized assignment methodc. the loss prevention methodd. all of the abovee. a and b onlyAnswer: eDifficulty: Moderate39. Which of the following is not a major step in the savings matrix method?a. identify the distance matrixb. identify the savings matrixc. assign seed points for each routed. assign customers to vehicles or routese. sequence customers within routesAnswer: cDifficulty: Moderate40. The generalized assignment methoda. is more sophisticated than the savings matrix method.b. usually results in solutions where there are fewer deliveries to be satisfied.c. usually results in better solutions when there are few delivery constraintsto be satisfied.d. a and b onlye. a and c onlyAnswer: eDifficulty: Hard41. Which of the following is not a step in the generalized assignment method?a. identify the distance matrixb. assign seed points for each routec. evaluate insertion cost for each customerd. assign customers to routese. sequence customers within routesAnswer: aDifficulty: Hard42. The main disadvantage of the generalized assignment method isa. the quality of the solution.b. that it has difficulty generating good delivery schedules as moreconstraints are included.c. its lack of simplicity and robustness.d. none of the abovee. a and c onlyAnswer: bDifficulty: Hard43. The main strength of the savings matrix method isa. the quality of the solution.b. that it has difficulty generating good delivery schedules as more constraintsare included.c. its simplicity and robustness.d. none of the abovee. a and c onlyAnswer: cDifficulty: Hard44. The main weakness of the savings matrix method isa. the quality of the solution.b. that it has difficulty generating good delivery schedules as more constraintsare included.c. its simplicity and robustness.d. none of the abovee. a and b onlyAnswer: aDifficulty: Moderate45. Managers should ensure that a firm’s transportation strategya. involves cost minimization.b. involves profit maximization.c. supports its competitive strategy.d. is separate from competitive strategy.e. none of the aboveAnswer: cDifficulty: Hard46. Ignoring uncertainty in demand encourages a greater use ofa. expensive but flexible transportation modes.b. inexpensive and inflexible transportation modes.c. inexpensive and flexible transportation modes.d. expensive and inflexible transportation modes.e. none of the aboveAnswer: bDifficulty: Moderate47. Inexpensive and inflexible transportation modes tend toa. perform poorly.b. perform very poorly when plans change.c. perform well when everything goes as planned.d. all of the abovee. b and c onlyAnswer: cDifficulty: ModerateEssay/Problems1. Discuss the two key players involved in any transportation in the supply chain.Answ er: There are two key players in any transportation that takes place within a supply chain. The shipper is the party that requires the movement of the product between two points in the supply chain. The carrier is the party that moves ortransports the product.When making transportation-related decisions, factors to be considered varydepending on whether one takes the perspective of a carrier or shipper. A carrier makes investment decisions regarding the transportation infrastructure (rails,locomotives, trucks, airplanes, etc.) and then makes operating decisions to try to maximize the return from these assets. A shipper, in contrast, uses transportation to minimize the total cost (transportation, inventory, information, and facility)while providing an appropriate level of responsiveness to the customer.Difficulty: Moderate2. What trade-offs do managers need to consider when making transportationdecisions?Answ er: The cost of coordinating operations is generally hard to quantify.Companies should evaluate different transportation options in terms of variouscosts as well as revenues and then rank them according to coordinationcomplexity. A manager can then make the appropriate transportation decision.Managers must consider the following trade-offs when making transportationdecisions:• Transportation and inventory cost trade-off• Transportation cost and customer responsiveness trade-off The trade-off between transportation and inventory costs is significant whendesigning a supply chain network. Two fundamental supply chain decisionsinvolving this trade-off are:• Choice of transportation mode• Inventory aggregationWhen selecting a mode of transportation, managers must account for inventorycosts. Modes with high transportation costs can be justified if they result insignificantly lower inventories. Firms can significantly reduce the safety inventory they require by physically aggregating inventories in one location. Transportation cost, however, increases when inventory is aggregated.The transportation cost a supply chain incurs is closely linked to the degree ofresponsiveness the supply chain aims to provide. If a firm has highresponsiveness and ships all orders within a day of their receipt from thecustomer, it will have small outbound shipments resulting in a high transportation cost. If it decreases its responsiveness and aggregates orders over a longer time horizon before shipping them out, it will be able to exploit economies of scale and incur a lower transportation cost because of larger shipments.Difficulty: Moderate3. Explain why transportation systems should be tailored.Answ er: Tailored transportation is the use of different transportation networksand modes based on customer and product characteristics. A firm can meetcustomer needs at a lower cost by using tailored transportation to provide theappropriate transportation choice based on customer and product characteristics.Firms must consider customer density and distance from warehouse whendesigning transportation networks. Firms must consider customer size andlocation when designing transportation networks. The degree of inventoryaggregation and the modes of transportation used in a supply chain networkshould vary with the demand and value of a product.Tailoring transportation based on customer density and distance, customer size,or product demand and value allows a supply chain to achieve appropriateresponsiveness and cost.Difficulty: Moderate4. Compare the advantages and disadvantages of the savings matrix method andthe generalized assignment method of assigning and sequencing customerorders.Answ er: This method is simple to implement and can be used to assigncustomers to vehicles even when delivery time windows or other constraints exist.The generalized assignment method is more sophisticated and generally gives abetter solution than the savings matrix method when the delivery schedule hasno constraints other than vehicle capacity. The main disadvantage of thegeneralized assignment method is that it has difficulty generating good deliveryschedules as more constraints are included.The main strength of the savings matrix method is its simplicity and robustness.The method is simple enough to be easily modified to include delivery timewindows and other constraints and robust enough to give a reasonably goodsolution that can be implemented in practice. Its main weakness is the quality ofthe solution. It is often possible to find better delivery schedules using moresophisticated methods. The savings matrix method is recommended in casethere are many constraints that need to be satisfied by the delivery schedule.Difficulty: Moderate5. Discuss the relationship between transportation strategy and competitive strategy.Answ er: Transportation strategy needs to be aligned with competitive strategy.Managers should ensure that a firm’s transportation strategy supports itscompetitive strategy. They should design functional incentives that help achievethis goal. Historically, the transportation function within firms has been evaluatedbased on the extent to which it can lower transportation costs. Such a focusleads to decisions that lower transportation costs but hurt the level ofresponsiveness provided to customers and may raise the firm’s total cost.Difficulty: Moderate6. Discuss the importance of designing flexibility into the transportation network.Answ er: Flexibility needs to be designed into the transportation network.Whendesigning transportation networks, managers should take into accountuncertainty in demand, as well as availability of transportation. Ignoringuncertainty encourages a greater use of inexpensive and inflexible transportation modes that perform well when everything goes as planned. Such networks,however, perform very poorly when plans change. When managers account foruncertainty, they are more likely to include flexible, though more expensive,modes of transportation within their network. Although these modes may be moreexpensive for a particular shipment, including them in the transportation options allows a firm to reduce the overall cost of providing a high level of responsiveness.Difficulty: Moderate。