CPIM Practice Exam

What do pickup and delivery costs depend on?

1. The vehicle used for transport

2. Carrier charges related to the shipment's weight and distance

3. Driver experience and hourly rates

4. Time of day the pickup occurs

The correct answer is: Carrier charges related to the shipment's weight and distance

Pickup and delivery costs are primarily influenced by carrier charges that relate directly to the shipment's weight and distance. This is because shipping providers typically have pricing structures based on the volume and mass of the freight, as these factors significantly impact the cost of transport. Heavier and bulkier items require more fuel and possibly a different type of vehicle, leading to higher expenses. Additionally, the distance traveled to deliver the goods affects costs. Longer distances increase fuel and labor expenses for transportation, thus making weight and distance key determinants in calculating overall pickup and delivery costs. While the vehicle type, driver experience, and time of day can also play roles in logistics operations, they are secondary considerations. Vehicle choice may influence efficiency and running costs but does not fundamentally determine the base cost structure in the same way that weight and distance do. Driver experience can affect productivity and safety but is not a primary cost driver. The time of day may influence delivery efficiency or availability but is not generally a significant factor in pricing structures. Therefore, the relationship between carrier charges and shipment weight and distance serves as the foundational aspect of what drives pickup and delivery costs.