Certified Production & Operations Manager (POM) Practice Exam

To minimize interdepartmental transportation costs, which factor must be considered?

1. Distance moved

2. Cost per load meter moved

3. Size of departments

4. Number of employees

The correct answer is: Distance moved

Minimizing interdepartmental transportation costs primarily hinges on the distance moved. When considering transportation logistics, the distance that goods or materials need to travel between departments directly influences the overall cost. Longer distances may require more resources, such as fuel, time, and labor, leading to higher expenses. Consequently, optimizing the layout to shorten this distance can significantly cut costs by reducing the time and resources needed for transportation. While other factors, such as the cost per load meter moved or the size of departments, may impact transportation in a more nuanced way, they do not address the overarching concern of distance in this context. The number of employees might affect labor costs or efficiency but does not inherently relate to minimizing the actual transportation costs associated with moving materials between departments. Therefore, focusing on distance is critical in creating an efficient and cost-effective interdepartmental transportation system.