Transportation Operations LINCS Practice Exam

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What does a transportation management system use a rating feature for?

Choose carrier based on cost
Research a Global Positioning System
Link electronic data interchange networks
Setup cold chain limits

The correct answer is: Choose carrier based on cost

A transportation management system (TMS) uses a rating feature primarily to choose carriers based on cost. This functionality allows companies to obtain and compare freight rates from different carriers, which is essential for determining the most economical option for transporting goods. The ability to assess and rate these options not only helps in managing transportation expenses but also plays a crucial role in maintaining efficient logistics operations. By selecting the most cost-effective carrier, organizations can optimize their supply chain performance and improve overall profitability. The other options focus on different aspects of transportation management. While researching Global Positioning Systems or linking electronic data interchange networks are important in their contexts, they are not the primary use of the rating feature within a TMS. Additionally, setting up cold chain limits pertains to temperature-sensitive logistics rather than the cost-related functionalities pertinent to carrier selection.