APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 101

A transportation manager is making a decision to change from common carrier to private carrier. Three key advantages of private carrier are:

Answer options

• A. increased back-haul efficiency, lower transit times, and flexibility.
• B. lower freight claims, lower inventory levels, and lower fixed costs.
• C. lower transit times, flexibility, and improved customer service.
• D. increased driver turnover, lower transit times, and improved customer service.

Correct answer: C

Explanation

The correct answer is C because private carriers offer shorter transit times, greater flexibility, and improved customer service, which are critical advantages for businesses. Options A and B mention aspects that may not be as beneficial in the context of private carriers, while option D incorrectly includes increased driver turnover, which is a disadvantage.