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Factors Influencing Transportation Costs

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Factors Influencing Transportation Costs

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Questions and Answers

What are transportation costs usually quoted in terms of?

Dollars per unit of weight (correct)

Cubic capacity

Density

Volume

Why do higher-density products allow for lower transport costs per unit of weight?

They are easier to stow

They spread fixed transport costs across more weight (correct)

They have higher liability

They require less handling equipment

Which factor influences stowability the most?

Excessive weight

Product density

Special handling equipment

Odd package shapes (correct)

How can shippers reduce their liability in terms of transportation cost?

Improving packaging Signup and view all the answers

What influences handling cost along with special handling equipment?

Grouping of products for transport and storage Signup and view all the answers

Why would odd-shaped items be more challenging to stow than rectangular ones?

Their shape may not fit well in transportation equipment Signup and view all the answers

What is the primary factor that influences transportation costs?

Distance Signup and view all the answers

Which of the following statements about volume is true?

Transportation costs per unit decrease as load volume increases up to the vehicle's capacity. Signup and view all the answers

What does the term 'density' refer to in the context of transportation costs?

A combination of the weight and volume of the product being transported. Signup and view all the answers

Which of the following is NOT mentioned as a factor influencing transportation costs?

Packaging Signup and view all the answers

What is the management implication regarding load volume?

Small loads should be consolidated into larger loads to maximize scale economies. Signup and view all the answers

Which of the following statements is true about the factors influencing transportation costs?

The factors are listed in order of increasing importance. Signup and view all the answers