APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 151

An ocean carrier's goal of maximizing total revenue of the entire ship by offering very competitive rates that cover their variable costs and then increasing rates according to what the traffic will bear is referred to as:

Answer options

• A. any-quantity service rate
• B. value of service rate
• C. limited service rate
• D. incentive rate

Correct answer: A

Explanation

The correct answer, 'any-quantity service rate', accurately describes a pricing strategy where rates are set to attract customers regardless of the quantity they ship. The other options do not align with the strategy of adjusting rates based on market demand and covering variable costs.