Logistics & Distribution Flashcards

Which transportation regulation in the US governs hours of service for commercial truck drivers?

Answer: Federal Motor Carrier Safety Regulations (FMCSR)

FMCSR regulations set maximum driving hours and mandatory rest periods for commercial vehicle operators in the US.

In logistics network design, the 'gravity model' is used to determine:

Answer: Optimal facility location based on demand and cost

The gravity model finds the optimal warehouse location by minimizing the weighted distance between the facility and demand points.

What is the primary benefit of using a Transportation Management System (TMS)?

Answer: Optimizing carrier selection, routing, and freight audit

A TMS optimizes carrier selection, consolidates shipments, tracks freight, and automates freight audit and payment.

Which logistics concept defers final product configuration until the latest possible point to serve multiple markets from common inventory?

Answer: Postponement

Postponement delays differentiation steps (labeling, assembly, packaging) to reduce forecast risk and inventory variety.

A company uses dedicated contract carriage (DCC) instead of common carriers. The main advantage of DCC is:

Answer: Exclusive service, brand control, and consistent capacity

DCC provides a shipper with dedicated fleet capacity, branded vehicles, and service consistency unavailable from common carriers.

Which metric measures the ratio of actual cargo weight or volume carried versus the maximum capacity of the vehicle?

Answer: Load factor (utilization rate)

Load factor or utilization rate shows how efficiently transport capacity is used, directly impacting per-unit freight cost.

The Carmack Amendment in US law primarily addresses carrier liability for:

Answer: Loss or damage to goods during interstate shipment

The Carmack Amendment establishes a uniform federal standard for carrier liability for cargo loss or damage in interstate commerce.