APICS Certified Supply Chain Professional (CSCP) — Question 10

The transportation manager at a consumer goods manufacturer has decided to begin shipping full truckload rather than less-than-truckload quantities. Which of the following outcomes is likely following implementation of this decision?

Answer options

• A. Inventory levels at the manufacturer will decrease.
• B. Lead times as seen by the customer will increase.
• C. Production efficiencies at the manufacturer will increase.
• D. Transportation costs as seen by the customer will increase.

Correct answer: B

Explanation

Choosing full truckload shipping typically leads to longer lead times for customers as the manufacturer may need to consolidate shipments before dispatching. While inventory levels may not necessarily decrease and production efficiencies can vary, the primary impact on customer experience is an increase in lead times. Transportation costs are not guaranteed to rise for customers with this change.