CWLP Logistics Planning & Transportation Management 2 — Questions and Answers
Question 1: A shipper needs to move time-sensitive medical supplies across 1,200 miles. Which transportation mode is MOST appropriate?
- Full Truckload (FTL)
- Air freight (Correct answer)
- Intermodal rail
- Less-than-Truckload (LTL)
Correct answer: Air freight
Air freight is the fastest mode and best suited for urgent, high-value shipments like medical supplies over long distances.
Question 2: Which document serves as the contract of carriage between a shipper and a carrier?
- Commercial invoice
- Packing list
- Bill of lading (Correct answer)
- Certificate of origin
Correct 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.
Question 3: In transportation planning, what does 'mode selection' primarily depend on?
- Carrier brand reputation
- Cost, transit time, reliability, and cargo characteristics (Correct answer)
- Number of available drivers
- Shipper's geographic location only
Correct answer: Cost, transit time, reliability, and cargo characteristics
Mode selection balances cost, speed, reliability, and the nature of the cargo (weight, fragility, volume).
Question 4: A company consolidates multiple small shipments into one truckload to reduce costs. This strategy is called:
- Cross-docking
- Drop shipping
- Freight consolidation (Correct answer)
- Reverse logistics
Correct answer: Freight consolidation
Freight consolidation combines smaller shipments heading to the same destination to achieve lower per-unit shipping costs.
Question 5: What is the primary advantage of intermodal transportation?
- Eliminates all customs documentation
- Combines two or more modes to optimize cost and coverage (Correct answer)
- Guarantees next-day delivery
- Reduces the need for freight insurance
Correct 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.
Question 6: Which carrier classification typically handles shipments weighing between 150 and 10,000 pounds?
- Parcel carriers
- LTL carriers (Correct answer)
- FTL carriers
- Pipeline carriers
Correct answer: LTL carriers
LTL (Less-than-Truckload) carriers specialize in shipments too large for parcel services but too small to fill an entire trailer.
Question 7: A logistics planner calculates a 'landed cost' for an imported product. What does landed cost include?
- Only the product purchase price
- Product price, freight, insurance, duties, and handling fees (Correct answer)
- Freight and insurance only
- Manufacturing cost plus retail markup
Correct 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.
CWLP Logistics Planning & Transportation Management 2
A shipper needs to move time-sensitive medical supplies across 1,200 miles.
Which transportation mode is MOST appropriate?