CPIM Practice Exam

Which of the following actions is most likely to reduce materials handling costs?

1. Shipping by full truckload rather than less-than-truckload.

2. Using more manual labor for smaller loads.

3. Implementing traditional warehousing strategies.

4. Utilizing more break-bulk centers.

The correct answer is: Shipping by full truckload rather than less-than-truckload.

Shipping by full truckload rather than less-than-truckload is an effective way to reduce materials handling costs. Full truckload shipping allows for maximizing the use of available transportation capacity, which minimizes the number of trips needed to transport goods. This results in lower per-unit transportation costs due to economies of scale. When shipping full truckloads, the number of handling operations required is significantly reduced compared to less-than-truckload shipping, which often requires multiple stops and transfers, leading to additional handling and logistics costs. This streamlined approach improves efficiency, lowers handling labor requirements, and minimizes the risk of damage during transit due to fewer handling points. In contrast, using more manual labor for smaller loads, implementing traditional warehousing strategies, or utilizing more break-bulk centers typically involve increased handling complexity, costs, or require more labor, which do not contribute effectively to reducing overall materials handling expenses.