CPSM Logistics & Distribution 5 — Questions and Answers
Question 1: Which transportation regulation in the US governs hours of service for commercial truck drivers?
- Jones Act
- Staggers Rail Act
- Federal Motor Carrier Safety Regulations (FMCSR) (Correct answer)
- Carmack Amendment
Correct answer: Federal Motor Carrier Safety Regulations (FMCSR)
FMCSR regulations set maximum driving hours and mandatory rest periods for commercial vehicle operators in the US.
Question 2: In logistics network design, the 'gravity model' is used to determine:
- Weight limits for shipments
- Optimal facility location based on demand and cost (Correct answer)
- Carrier rate negotiations
- Safety stock levels at distribution centers
Correct 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.
Question 3: What is the primary benefit of using a Transportation Management System (TMS)?
- Automating supplier invoices
- Optimizing carrier selection, routing, and freight audit (Correct answer)
- Managing warehouse slotting
- Forecasting customer demand
Correct answer: Optimizing carrier selection, routing, and freight audit
A TMS optimizes carrier selection, consolidates shipments, tracks freight, and automates freight audit and payment.
Question 4: Which logistics concept defers final product configuration until the latest possible point to serve multiple markets from common inventory?
- Cross-docking
- Consolidation
- Postponement (Correct answer)
- Milk-run collection
Correct answer: Postponement
Postponement delays differentiation steps (labeling, assembly, packaging) to reduce forecast risk and inventory variety.
Question 5: A company uses dedicated contract carriage (DCC) instead of common carriers. The main advantage of DCC is:
- Lower fixed costs and maximum flexibility
- Exclusive service, brand control, and consistent capacity (Correct answer)
- No need for driver management
- Elimination of fuel surcharges
Correct 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.
Question 6: Which metric measures the ratio of actual cargo weight or volume carried versus the maximum capacity of the vehicle?
- Freight density
- Load factor (utilization rate) (Correct answer)
- Cube efficiency
- Payload ratio
Correct answer: Load factor (utilization rate)
Load factor or utilization rate shows how efficiently transport capacity is used, directly impacting per-unit freight cost.
Question 7: The Carmack Amendment in US law primarily addresses carrier liability for:
- Environmental compliance during transport
- Loss or damage to goods during interstate shipment (Correct answer)
- Driver wage disputes
- Port handling fees
Correct 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.
CPSM Logistics & Distribution 5
Which transportation regulation in the US governs hours of service for commercial truck drivers?