470 Set

Question 6 Analysis The prompt describes a system that manages product availability across locations and requires network-wide visibility into stock levels. Just-in-Time (JIT) is a manufacturing and inventory strategy focused on receiving goods exactly when needed to minimize holding costs, rather than managing multi-location distribution networks. Distribution Requirements Planning (DRP) is specifically designed to calculate the need to replenish inventory at branch warehouses, providing the necessary stock visibility and location planning. Therefore, the currently selected answer is incorrect; the correct option is Distribution requirements planning (DRP).

Question 7 Analysis This question asks for a strategy that reduces inventory by aligning manufacturing directly with delivery schedules. A Push system relies on forecasted demand (often creating surplus), while periodic review is simply an inventory auditing method. The strategy that explicitly synchronizes production and supplier deliveries to eliminate buffer inventory is Just-in-time (JIT).

Question 8 Indirect via wholesaler is the correct distribution channel. Wholesalers specialize in purchasing goods in large bulk quantities from manufacturers, providing the necessary intermediary storage in their own facilities, and then breaking those bulk shipments down to distribute smaller quantities to retailers.

Question 9 Rail freight is the most likely intended answer in a supply chain context. While road and air transport are highly susceptible to sudden terrestrial weather events (snowstorms, fog, flooding), rail networks are generally considered the most resilient and reliable land-based transport mode during inclement weather.

Question 10 Horizontal collaboration is the correct term. This strategy occurs when organizations operating at the same tier of the supply chain—even direct competitors—partner to share resources like warehousing, distribution centers, or transportation networks to lower overhead costs and improve operational efficiency.

Question 11 Back Hauling is the correct answer. This logistics practice involves planning a commercial truck's route so that it picks up a new load of goods for its return trip, eliminating the cost and wasted capacity of driving an empty returning vehicle (often called a "deadhead" run)

Question 13 Cross-docking is the correct answer. This is a logistics strategy where materials are unloaded from incoming transportation and immediately loaded onto outbound transportation with little to no storage time in between, keeping the flow of goods continuous.

Question 14 Fourth-party logistics (4PL) is the correct choice. While a 3PL provider typically handles specific logistical tasks (like warehousing or transportation), a 4PL acts as a strategic partner and integrator that takes over the planning and management of the client's entire supply chain network.

Question 15 Road freight is the correct transport mode. Road vehicles—such as vans, box trucks, and courier cars—are uniquely capable of navigating complex street-level infrastructure, making them the only feasible option for delivering goods directly to individual residences and storefronts during the "final mile."

Question 16 Globalization complexities is the best answer. Operating on a global scale introduces unpredictable variables into the supply chain, such as customs delays at international borders, port congestion, varying regional infrastructures, and geopolitical disruptions, all of which contribute to inconsistent transit times.

Question 17 Total logistics concept (TLC) is the correct concept. This approach views the entire supply chain—from raw material suppliers to final customer delivery—as one cohesive, interconnected system rather than a series of separate, siloed departments.

Question 18 Perishable goods benefit most from this strategy. Items with a short shelf life, such as fresh produce or certain pharmaceuticals, require rapid, highly reliable distribution networks to reach end-users before spoiling or losing their commercial value.

Question 19 Cost leadership is the correct aim. By deliberately keeping inventory levels extremely low, a company significantly reduces warehousing and holding costs, allowing them to compete primarily by offering lower prices than competitors.

Question 20 Online matching of shippers and carriers is the key characteristic. A digital freight exchange functions as an online marketplace that connects companies needing to transport goods with transport operators who have available cargo capacity, without the exchange needing to own physical warehouses or vehicles.

Question 21 Supply Chain 4.0 is the correct answer. This term refers to the application of Industry 4.0 innovations—such as artificial intelligence, big data analytics, the Internet of Things (IoT), and advanced robotics—to supply chain management. These technologies are used to automate processes, run predictive simulations, and optimize complex logistics decisions across the entire network.

Question 22: The international principle ensuring WTO members treat imported goods from different countries equally is the Most Favoured Nation (MFN) principle.
Question 23: A company importing electronics to the EU is most likely required to pay Value Added Tax (VAT) upon import.
Question 24: A country would apply an Anti-dumping duty to offset the impact of imported goods being sold below fair market value.
Question 25: Goods typically subject to excise duty in many countries are Alcohol, tobacco, and fuel.
Question 26: The purpose of the WTO's Sanitary and Phytosanitary (SPS) Agreement is to Protect plants, animals, and humans from diseases/pests.
Question 27: The document that defines buyer and seller responsibilities for delivery, risks, and costs in international trade is Incoterms.
Question 28: Market and consumer protection controls ensure imported cosmetics meet safety and labeling standards.
Question 29: A Tariff quota allows a limited quantity of goods to be imported at a reduced tariff rate.
Question 30: A main goal of Coordinated Border Management is to Improve enforcement and reduce trade compliance costs.
Question 31: A significant threat that poor border performance could create is Threats to public security.
Question 32: The WCO (World Customs Organization) provides the SAFE Framework to secure supply chains.
Question 33: A company might engage a customs broker or freight forwarder To delegate compliance obligations.
Question 34: A Veterinary control check would most likely apply to imported live animals.
Question 35: Supplier-to-customer cooperation is NOT part of the WCO SAFE Framework.
Question 36: A Customs tariff applies to imports and is calculated as a percentage of value.
Question 37: A risk of poor cross-border logistics compliance is a Threat to national income.
Question 38: Environmental and health control policies would prevent the import of ozone-depleting substances.
Question 39: Customs is the agency primarily responsible for collecting tariffs and controlling goods at the border.
Question 40: AEO-type programs (Authorized Economic Operator) encourage partnership between customs authorities and businesses to secure supply chains.
Question 41: A typical reason for applying countervailing measures is To offset unfair subsidies on imported goods.
42. To avoid stockouts from demand fluctuations, what inventory type should be maintained? Safety stock
43. A supplier forecasts a sharp increase in raw material costs. What inventory strategy should a buyer adopt? Build speculative stock
44. A company classifies items by value and usage. What method is it using? ABC analysis
45. A manufacturer holds inventory between production stages. What type is this? Work-in-progress (WIP)
46. Which inventory is most directly linked to demand variability? Safety stock
47. Which classification likely includes unsold seasonal items? D items
48. A bakery increases flour inventory ahead of a holiday. What inventory type is this? Seasonal stock
49. Which action is most effective for reducing carrying costs? Reduce average inventory
50. What forecasting method weights recent demand more heavily? Exponential smoothing
51. A business compares actual demand to forecasted demand. What metric does it use? Mean Absolute Deviation (MAD)
52. Which strategy best reduces the bullwhip effect? Share real-time demand data
53. A business overreacts to a small drop in customer demand, ordering extra supply. What is this called? Bullwhip effect
54. A business needs to plan for products with unpredictable demand. Which method suits best? Collaborative forecasting
55. Which method balances ordering and holding costs? Economic Order Quantity (EOQ)
56. Which inventory system reorders when stock hits a set level? Fixed reorder point
57. A retailer receives deliveries at set times regardless of demand. This is: Push system
58. A manufacturer makes products only after receiving orders. This is an example of: Make-to-order
59. Which inventory model best suits high-demand, low-variability products? Push system
60. Which strategy would minimize inventory in a lean manufacturing environment? Just-in-time
61. A vendor manages restocking on behalf of the buyer. This is: Vendor-Managed Inventory (VMI)
62. What does inventory turnover measure? How often inventory is sold and replaced
63. A company improves pick rates per hour. What KPI improves? Labor productivity
64. A warehouse manager uses engineered standards to evaluate tasks. What's being measured? Time for completion
65. Which KPI indicates efficiency in meeting customer demand? Perfect order rate
66. A company wants to reduce waste in packaging. Which metric should they use? Cost per order packed
67. A business uses RFID to track products in real time. What's the primary benefit? Improved visibility
68. A control tower provides dashboard-style monitoring across the supply chain. The goal is: Enable real-time decision-making
69. Which system links production, distribution, and finance modules? ERP
70. A manager wants to assign logistics costs to specific activities. Which method should be used? Activity-Based Costing (ABC)
71. What approach calculates the true cost to serve a customer? Cost-to-serve
72. What is the main purpose of benchmarking logistics operations? Identify performance gaps
73. What KPI category includes efficiency ratios like cost per unit shipped? Ratio
74. What type of benchmarking compares logistics processes across industries? Functional benchmarking
75. A company shifts to flexible budgeting for warehousing. What is the advantage? Aligns cost with activity volume
76. Which scorecard perspective evaluates process efficiency? Internal
77. In humanitarian logistics, a major challenge is: Unpredictable demand and urgency
78. Which metric tracks time from receiving donations to delivery in crisis zones? Donation-to-delivery time
79. A hybrid inventory model combines what two approaches? Push and Pull
80. Which tool assesses the environmental, social, and financial impact of logistics? Triple Bottom Line (TBL)
81. Which approach helps forecast and plan logistics activities over a long time horizon? Strategic planning
82. What is the main role of a distribution center in supporting seasonal demand? Hold inventory to meet peaks in seasonal demand
83. Which type of warehouse layout is designed to support large volumes with high repetition and low variety? Product layout
84. Which technology integrates hardware, software, and communications to automate production activities? Computer-integrated manufacturing (CIM)
85. Which performance model links employee satisfaction to customer value and profitability? Service-profit chain
86. Which warehouse strategy supports quick cross-docking and minimal storage? Trans-shipment site
87. What is the focus of a triple bottom line (TBL) measurement? Environmental, social, and economic factors
88. Which metric represents the ratio of a warehouse's output to its input? Productivity
89. What technology is used to design, analyze, and simulate products before they are physically made? Computer-aided design (CAD)
90. Which type of manufacturing system is best for making customized products with low volume? Project
91. Which order qualifier describes the basic expectations customers have for goods or services? Order qualifier
92. Which performance model evaluates performance across the entire value chain, from suppliers to customers? Value chain model
93. What is a key feature of a flexible manufacturing system (FMS)? Computer-controlled machines linked by automated handling
94. Which warehouse operation supports the final stage of order assembly before shipment? Marshalling
95. Which strategy aims to provide a seamless customer experience across all shopping channels? Omnichannel fulfillment
96. Which service-related performance dimension measures the ability to adapt to changing customer needs? Flexibility
97. Which layout would be most appropriate for assembling large products like aircraft? Fixed position
98. Which decision factor is most relevant when evaluating a warehouse technology's scalability? Ability to serve additional customers at low incremental cost
99. Which element of the balanced scorecard focuses on customer needs and satisfaction? Customer
100. Which soft technology supports goods creation and delivery using internet and software systems? Computer software
101. What type of warehouse site is primarily used when regular storage space is exceeded? Overflow site