Scmn 3150 Final Study Guide Graded A+

What are the comparative advantages of international air and ocean transportation? Be prepared to choose between different shipments. {Ans: Ocean-Least Expensive, high capacity, slow, higher risk of damage, and theft. Ideal for Seasonal, low value, low risk consumer goods, and bulk commodities and large items. Air-Most Expensive, low capacity, fast, lower risk of damage. Ideal for high value, fragile, and perishable goods.}What are key trends in global transportation rates? {Ans: -Service Rationalization -High demand for US bound equipment -Mergers and acquisitions -Net Impact, the pricing pendulum has swung in favor of carriers. -Reduced Capacity higher rates.}Group F (FCA, FAS, FOB) {Ans: The seller is called upon to deliver the goods to an international carrier appointed by the buyer, the seller arranges and pays for pre-carriage in the country of export.}Why is port selection so critical? {Ans: It directly affects how well your goods flow efficiently and seamlessly through the supply chain. It can also minimize risk of damage, theft, and long lead times.}What risks do organizations face as freight moves through global supply chains? How can they protect themselves against such problems? {Ans: A. Theft/Piracy, water damage, handling/stowage, fortuitous losses, contamination by other cargo or