CPIM Practice Exam

Which factor could conflict with a company's goal to minimize transportation costs?

1. Reducing in-transit time through faster shipping options.

2. Ensuring on-time delivery to customers.

3. Shipping in full truckloads for efficiency.

4. Using a consolidation center to optimize shipments.

The correct answer is: Reducing in-transit time through faster shipping options.

Selecting faster shipping options to reduce in-transit time can indeed conflict with a company's objective of minimizing transportation costs. While quicker transportation can enhance customer satisfaction and potentially improve service levels, it typically comes at a premium price. Expedited shipping methods, such as air freight or express services, often involve significantly higher costs than slower options, undermining efforts to keep transportation expenses low. On the other hand, ensuring on-time delivery to customers, shipping in full truckloads, and using a consolidation center are strategies generally aligned with minimizing transportation costs. These methods can optimize resource utilization, reduce per-unit shipping costs, and enhance operational efficiency. Therefore, while all factors considered can influence transportation efficiency, the choice of faster shipping directly ties to increased expenses, making it the factor most likely to create a conflict with the goal of minimizing transportation costs.