APICS Certified Supply Chain Professional (CSCP) — Question 466

Which of the following statements is true when selecting the mode of transportation to use in a global supply chain?

Answer options

• A. The difference in cost of warehousing in different countries makes air transportation viable only for very lightweight items.
• B. When moving heavy items long distances, water transportation offers the lowest cost and highest availability in most countries.
• C. Pipeline usage is limited because of the high variable cost of operation and difficulty moving between pipelines.
• D. The availability, specifications, and geographic reach of rail transportation varies greatly from country to country.

Correct answer: D

Explanation

Option D is correct because the performance and infrastructure of rail transport can vary significantly based on the country. The other options contain inaccuracies; for instance, option A oversimplifies air transportation viability, option B may not always hold true due to regional differences, and option C misrepresents the operational costs associated with pipelines.