Transportation Operations LINCS Practice Exam

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Which of the following is NOT a function of a Transportation Management System (TMS)?

Allocating labor resources
Tracking carrier performance
Choosing the best cost carriers
Calculating shipping costs

The correct answer is: Allocating labor resources

A Transportation Management System (TMS) focuses primarily on optimizing the shipping process, which includes managing and analyzing transportation operations rather than directly managing labor resources. While a TMS can provide valuable insights that may indirectly influence labor allocation decisions, it is not specifically designed to handle labor management tasks. Its core functionalities revolve around logistics, like tracking shipments, managing carrier relationships, and analyzing transportation costs. In contrast, tracking carrier performance is an essential function of TMS. It monitors how effectively carriers meet service levels and performance metrics. Similarly, choosing the best cost carriers is a fundamental part of a TMS, which analyzes various carrier options to find the most economical and efficient routes. Additionally, calculating shipping costs is another primary function of TMS, as it helps companies forecast their shipping expenses and optimize their logistics spend. These aspects are integral to the management of transportation operations, reinforcing the idea that allocating labor resources falls outside the primary scope of a TMS.