Principles of Transportation - LOGT 3231

The following information and questions are intended to help you focus your studying for the first exam. Please be aware of the following:

Note: This exam will include multiple choice and problems!!!

LOGT 3231 Exam 2 Review Material

CHAPTER 3 - Cost and Pricing

1. What are the definitions of cost and costing and why is this are important?

2. How can we allocate costs?  What is ABC?

3. What influences price and which strategies can we set to gain competitive advantage?

4. What are all of the different pricing strategies?

5. Under what conditions would you accept a shipment at less the cost and which cost(s)?

6. Be prepared to calculate all the figures in a zone of negotiation.

7. What are rates and tariffs and who sets them?

8. Be prepared to calculate a class rate.

9. What is a weight break? tapering rates?

10. What are some of the new or innovative rates being used today?

For Each of the Modes answer Questions #1-10

1. What are the advantages and disadvantages of each mode?

2. What is the cost structure? Fixed-Variable - Specific Costs

3. What trends have occurred since deregulation?

4. Which types of carriers are there (common, contract, exempt, private)?

5. Do a few or a lot of companies dominate their industry?  Who are the primary companies in their industry?

6. What types of equipment do they use?

7. How can companies within the mode gain economies of scale?

8. What level of competition is there?  Who are the primary competitors (inter/intra)?  What is the market structure of the mode (pure comp., oligopoly, etc.)?

9. Who supports each mode's infrastructure and how is it funded?

10. What is the relative length of haul for each mode?  Which has the longest and shortest and why?

CHAPTER 5 - Motor Carriers

1. How would the differences between LTL and TL effect business operations? routes? rates? terminals? revenues? turnover? length of haul? etc.?

2. What are the purposes and advantages of the different types of terminals?  How do they interact with the Point-to-Point and Hub-and-Spoke Systems?

3. Who are the largest TL and LTL carriers?

4. Which companies were presented by groups in class?  How where they different?

5. What are the effects of deregulation on motor carrier rates? Sizes? Numbers? Etc.?  Which law deregulated motor carriers?

CHAPTER 6 - Railroads

1. Briefly describe the impact of the Railroads on history of western expansion and regulation.  Who were the rail barons and how did they use eminent domain?

2. What is the trend in rail track and line mileage?  Why?

3. What is the most commonly shipped rail product?  Which types of cars are used for which types of products? 

4. What mergers have occurred lately?  Which have been denied?

5. What is the trend in the number of Class 1, 2 and 3 railroads?

6. What are the differences between a mixed commodities train and a unit train?

7. Who owns which types of equipment? hoppers? tankers? flatcars? etc.?