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Question 142 - CSCP discussion

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The transportation manager at a consumer goods manufacturer has decided to begin shipping full truckload rather than less-than-truckload quantities. Which of the following outcomes is likely following implementation of this decision?

A.
Inventory levels at the manufacturer will decrease.
Answers
A.
Inventory levels at the manufacturer will decrease.
B.
Lead times as seen by the customer will increase.
Answers
B.
Lead times as seen by the customer will increase.
C.
Production efficiencies at the manufacturer will increase.
Answers
C.
Production efficiencies at the manufacturer will increase.
D.
Transportation costs as seen by the customer will increase.
Answers
D.
Transportation costs as seen by the customer will increase.
Suggested answer: C

Explanation:

Shipping full truckload (FTL) quantities rather than less-than-truckload (LTL) quantities typically leads to higher production efficiencies. FTL shipments reduce the complexity and frequency of transportation logistics, allowing for more streamlined and larger production runs. This efficiency reduces the time and resources spent on frequent shipping arrangements and handling multiple smaller loads. Additionally, FTL can lower transportation costs per unit and improve overall operational efficiency.

Reference:

'Logistics and Transportation: Design and Planning' by Raja G. Kasilingam

'Transportation: A Global Supply Chain Perspective' by Robert C. Lieb and John J. Coyle

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asked 16/09/2024
Daniel Melendez
49 questions
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