Certified in Logistics, Transportation and Distribution (CLTD) Practice Test 2025 – Your All-in-One Resource to Complete Exam Success!

The Center of Gravity Method is a widely used approach in logistics and transportation that helps in determining the optimal location for a facility by considering the volume of shipments and the geographic locations of demand points. This method is particularly effective in approximating transportation requirements because it uses shipping volume as a significant factor, allowing organizations to minimize transportation costs and improve efficiency.

In this method, distances from potential facility locations to various market locations are calculated, and by weighing these distances according to the volume of goods shipped to each location, a "center of gravity" point is identified. This balance of volume and distance assists in making data-driven decisions about where to place warehouses, distribution centers, or facilities to best serve customers and minimize transportation distances and costs.

Other methods listed might have their own uses, but they do not specifically focus on shipping volume as the primary weighting factor in determining transportation requirements the way the Center of Gravity Method does. For instance, Transportation Network Design typically involves broader considerations of routes and modes, Linear Programming focuses more on optimization problems through mathematical modeling, and Cost-Distance Analysis is more about calculating transportation costs based on distance alone, without adjusting for shipping volume.