Certified in Logistics, Transportation and Distribution (CLTD) 2025 – 400 Free Practice Questions to Pass the Exam

Determining transportation requirements at the strategic network design level involves understanding how close customers are to distribution centers (DCs) and the implications this proximity has on transportation costs and service levels. By examining the average distance from the customer to the nearest DC per transportation mode, businesses can effectively plan their logistics network to optimize efficiency and balance service levels with transportation costs.

This method allows companies to evaluate the most suitable transportation modes for different routes based on distance, which are critical factors for operational decisions. A shorter average distance typically leads to lower transportation costs, improved delivery times, and better overall service quality, which are vital to customer satisfaction and competitive advantage.

The other options are relevant considerations but do not focus specifically on the relationship between distance and logistics design. Average cost per transportation mode provides insight into cost management but does not directly account for geographic factors in network design. Historical shipping patterns can indicate trends but may not effectively guide future strategic decisions in a dynamic market. Available transportation resources are important for execution but are secondary to understanding the fundamental framework of distance and connectivity that drives logistics strategy.