Logistics Planning & Transportation Management Flashcards

What is a 'freight rate' in transportation management?

Answer: The price charged by a carrier per unit of weight or volume

A freight rate is the price a carrier charges to transport goods, typically expressed per hundredweight (CWT), per mile, or per unit.

Which transportation planning concept groups deliveries into geographic zones to maximize truck route efficiency?

Answer: Milk-run optimization

Milk-run (or round-robin) routing clusters multiple pickups or deliveries along an efficient loop to minimize empty miles.

Under a 'FOB Destination' shipping term, who bears the risk of loss during transit?

Answer: The seller

Under FOB Destination, the seller retains ownership and risk until the goods are delivered to the buyer's specified location.

A logistics manager uses a Transportation Management System (TMS) primarily to:

Answer: Plan, execute, and optimize freight movements

A TMS automates carrier selection, route planning, shipment tracking, and freight audit to improve transportation efficiency.

What does 'deadhead' mean in trucking?

Answer: Miles driven with an empty trailer

Deadhead miles are miles a truck travels without cargo, representing a direct cost with no revenue for the carrier.

Which regulatory body in the US oversees Hours of Service (HOS) rules for commercial truck drivers?

Answer: Department of Transportation / FMCSA

The Federal Motor Carrier Safety Administration (FMCSA), under the DOT, sets and enforces HOS regulations for commercial vehicle operators.

A shipper negotiates a contract with a carrier that locks in rates for 12 months. This is known as a:

Answer: Contract rate or tender

Contract rates (or tender agreements) provide price stability for a defined period in exchange for committed volume from the shipper.