Final answer:
If the transit rate in truckload transportation increases, the company's order quantity may decrease due to higher transportation costs.
Step-by-step explanation:
If the transit rate in truckload transportation increases, the company's order quantity may decrease. This is because an increase in transit rate would lead to higher transportation costs for the company. As a result, the company may choose to reduce its order quantity in order to mitigate the impact of the increased costs.
For example, let's say a company usually orders 100 units of a product with truckload transportation when the transit rate is $10 per unit. But if the transit rate increases to $15 per unit, the company may decide to decrease its order quantity to 70 units to manage the higher transportation costs.
Therefore, an increase in transit rate in truckload transportation can potentially lead to a decrease in the company's order quantity.