Practice Quiz

Supply Chain Manager Exam Prep

Category - Design and Improvement

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Outbound transportation costs per unit have a tendency to be higher than inbound because _____________.
  1. Outbound lot sizes are larger
  2. Outbound lot sizes are heavier
  3. Outbound lot sizes need more space
  4. All of the above.
Explanation
Answer: D - Inbound transportation costs incur in bringing material into a facility, whereas outbound transportation costs are the costs incurred in sending material out of a facility, after it has been assembled or altered, usually combining several pieces of inbound materials into a single unit. Therefore, outbound transportation costs PER UNIT tend to be higher than inbound because they are larger, heavier and take up more space in transport.
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