Transportation Operations LINCS Practice Exam

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What does the term "cross-docking" refer to in logistics?

The practice of unloading goods from one vehicle and directly loading them onto another
A method of transporting goods over short distances
The long-term storage of goods before delivery
Repackaging goods for further distribution

The correct answer is: The practice of unloading goods from one vehicle and directly loading them onto another

The term "cross-docking" specifically refers to the practice of unloading goods from one transportation vehicle and immediately loading them onto another vehicle without storing the goods in between. This process is crucial for improving efficiency in the supply chain by reducing handling and storage time, streamlining operations, and minimizing inventory costs. Cross-docking is commonly used in environments where speed and efficiency are essential, such as retail distribution, where products need to be quickly sorted and redirected to various delivery points. This method allows logistical organizations to enhance their responsiveness and cut down on the time goods spend in the supply chain, ultimately improving service delivery.