Transportation Operations LINCS Practice Exam

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How is the on-time pickup metric calculated for a freight carrier?

By dividing the number of shipments by the number of delays
By dividing the number of on-time pick-ups by the total number of shipments
By calculating the average time of all pick-ups
By multiplying the total number of shipments by the on-time rate

The correct answer is: By dividing the number of on-time pick-ups by the total number of shipments

The on-time pickup metric is calculated by dividing the number of on-time pickups by the total number of shipments. This formula provides a clear percentage that reflects the carrier's performance in meeting scheduled pickup times. Essentially, this metric illustrates the reliability and efficiency of the freight carrier's operations. A higher percentage indicates a higher level of adherence to scheduled pickups, which is crucial for customer satisfaction and overall operational performance. It allows logistical managers to assess how often a carrier meets their obligations in a timely manner, providing valuable insights for decision-making and potential improvements in the supply chain process. The other options do not provide an accurate method for calculating the on-time pickup metric. For example, simply dividing the number of shipments by the number of delays does not reflect pickup performance and would not yield meaningful insights. Similarly, averaging pick-up times or multiplying shipments by an on-time rate does not accurately convey on-time performance in relation to scheduled times.