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Question 247 - CSCP discussion

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The use of break-bulk warehouses allows for reduced transportation costs by receiving:

A.
large shipments and arranging for distribution to locations as smaller shipments.
Answers
A.
large shipments and arranging for distribution to locations as smaller shipments.
B.
sorting multiple receipts for outgoing shipments based on final destination.
Answers
B.
sorting multiple receipts for outgoing shipments based on final destination.
C.
converting individual pallets of goods into truckloads (TLs).
Answers
C.
converting individual pallets of goods into truckloads (TLs).
D.
staging products for delayed delivery to customers.
Answers
D.
staging products for delayed delivery to customers.
Suggested answer: A

Explanation:

Break-bulk warehouses play a critical role in reducing transportation costs by:

Receiving Large Shipments: Bulk shipments are received from manufacturers or suppliers. These large volumes typically attract lower transportation costs per unit due to economies of scale.

Breaking Down Shipments: The large shipments are then divided into smaller, more manageable quantities suitable for distribution to various locations or directly to customers.

Distribution: The smaller shipments are then transported to their final destinations. This method ensures that transportation costs are minimized as the bulk of the travel is done in larger, cost-effective shipments.

Efficiency: This process helps in consolidating shipments, optimizing load capacities, and reducing the overall number of trips required.

Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2013). Supply Chain Logistics Management. McGraw-Hill.

Langley, C. J., Coyle, J. J., Gibson, B. J., Novack, R. A., & Bardi, E. J. (2008). Managing Supply Chains: A Logistics Approach. South-Western Cengage Learning.

asked 16/09/2024
Raed Alshehri
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