Transportation & Distribution Flashcards
7 cards from real CLP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Transportation & Distribution flashcards as text
A hazardous materials shipment requires the use of a placard. Under DOT regulations, who is responsible for providing the placard to the carrier?
Answer: The shipper/offeror
Under 49 CFR, the shipper (offeror) is responsible for providing the appropriate placards to the carrier before tendering hazardous materials.
Which ocean carrier contract arrangement gives a shipper discounted rates in exchange for committing a minimum volume over a contract period?
Answer: Service contract
Ocean service contracts lock in rates and capacity for shippers who commit to a minimum volume over a specified time, benefiting both parties.
A company is comparing total transportation costs. Which cost is typically NOT included in total cost of transportation analysis?
Answer: Employee training for unrelated HR programs
Total cost of transportation includes freight, transit inventory, packaging, and handling—not unrelated HR or training expenses.
Which type of carrier is obligated to serve all shippers who request service at published tariff rates without discrimination?
Answer: Common carrier
Common carriers must serve the general public at published rates without unreasonable discrimination, unlike contract or private carriers.
Intermodal transportation most commonly refers to combining which two modes?
Answer: Truck and rail (TOFC/COFC)
Intermodal most commonly refers to combining truck and rail—trailer on flatcar (TOFC) or container on flatcar (COFC)—to leverage benefits of both modes.
A logistics manager negotiates a fuel surcharge mechanism tied to the DOE weekly retail diesel index. This approach is best described as:
Answer: A floating index-linked fuel surcharge
Linking the fuel surcharge to a published index like the DOE diesel index creates a floating adjustment that automatically reflects market fuel prices.
Which distribution network design minimizes total inventory investment while potentially increasing transportation costs?
Answer: Centralized network with few DCs serving large areas
Centralizing inventory in fewer DCs reduces safety stock requirements through risk pooling but increases outbound transportation distances and costs.