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Question 421 - CSCP discussion

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In order to decrease shipping costs, a shipper would take which of the following actions?

A.
Utilize less-than-truckload (LTL) shipments versus truckload (TL).
Answers
A.
Utilize less-than-truckload (LTL) shipments versus truckload (TL).
B.
Use a common carrier rather than a contract carrier.
Answers
B.
Use a common carrier rather than a contract carrier.
C.
Decrease the weight shipped and use break-bulk shipments.
Answers
C.
Decrease the weight shipped and use break-bulk shipments.
D.
Increase the weight shipped and consolidate shipments.
Answers
D.
Increase the weight shipped and consolidate shipments.
Suggested answer: D

Explanation:

To decrease shipping costs, a shipper should increase the weight shipped and consolidate shipments. Consolidating shipments reduces the cost per unit weight by maximizing the use of transportation capacity, thereby achieving economies of scale. Utilizing less-than-truckload (LTL) shipments, using a common carrier instead of a contract carrier, or decreasing the weight shipped and using break-bulk shipments typically result in higher costs due to inefficiencies and lower volume discounts.

Reference: Coyle, J. J., Langley, C. J., Novack, R. A., & Gibson, B. (2016). 'Supply Chain Management: A Logistics Perspective.'

asked 16/09/2024
Sheng-Feng Zhang
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