Exam Content

Boling Transportation, Inc., is a large distribution company located in Worcester, Mass. The company is currently seeking to gain operational efficiencies in its supply chain by reducing the number of transportation carriers it is using to outsource. Operational efficiencies for Boling Transportation, Inc., suggest that reducing the number of carriers from the Worcester distribution center to warehouses in the selected states will lead to reduced costs. Bo Fan, the CEO of Boling Trysportation, requests the number of carriers transporting products from its Worcester distribution center to wholesalers in Arizona, Arkansas, Iowa, Missouri, Montana, Oklahoma, Oregon, and Washington be reduced from the current five carriers to two carriers.

Carrier selection should be based on the assumptions that all environmental factors are equal and historical cost trends will continue. Review the historical data from the past several years to determine your recommendation for the top two carriers that Boling Transportation should continue to use.