Logistics Planning & Transportation Management Flashcards

A shipper needs to move time-sensitive medical supplies across 1,200 miles. Which transportation mode is MOST appropriate?

Answer: Air freight

Air freight is the fastest mode and best suited for urgent, high-value shipments like medical supplies over long distances.

Which document serves as the contract of carriage between a shipper and a carrier?

Answer: Bill of lading

The bill of lading is the legal contract of carriage that outlines terms, describes the shipment, and serves as a receipt.

In transportation planning, what does 'mode selection' primarily depend on?

Answer: Cost, transit time, reliability, and cargo characteristics

Mode selection balances cost, speed, reliability, and the nature of the cargo (weight, fragility, volume).

A company consolidates multiple small shipments into one truckload to reduce costs. This strategy is called:

Answer: Freight consolidation

Freight consolidation combines smaller shipments heading to the same destination to achieve lower per-unit shipping costs.

What is the primary advantage of intermodal transportation?

Answer: Combines two or more modes to optimize cost and coverage

Intermodal transportation leverages the strengths of multiple modes (e.g., rail for long hauls, truck for last mile) to balance cost and service.

Which carrier classification typically handles shipments weighing between 150 and 10,000 pounds?

Answer: LTL carriers

LTL (Less-than-Truckload) carriers specialize in shipments too large for parcel services but too small to fill an entire trailer.

A logistics planner calculates a 'landed cost' for an imported product. What does landed cost include?

Answer: Product price, freight, insurance, duties, and handling fees

Landed cost is the total cost of a product delivered to the buyer, including purchase price, shipping, insurance, duties, and other fees.