BSIE Supply Chain Management & Logistics 2

Question 1

What is cross-docking in warehouse management?

Accepted Answer

Transferring inbound shipments directly to outbound vehicles with minimal storage time

Answer

Cross-docking moves products from receiving directly to shipping docks, bypassing storage and dramatically reducing handling time and warehouse space needs.

Question 2

What is the 'total cost of ownership' (TCO) concept in procurement?

Accepted Answer

All costs associated with acquiring, using, and disposing of a product over its lifetime

Answer

TCO includes acquisition, installation, operation, maintenance, and disposal costs, providing a complete picture beyond the initial purchase price.

Question 3

Which type of demand is derived from the demand for a final product?

Accepted Answer

Dependent demand

Answer

Dependent demand for raw materials and components is directly calculated from the production plan for the finished goods they comprise.

Question 4

What is the primary benefit of postponement strategy in supply chain management?

Accepted Answer

Delaying product differentiation until closer to actual customer demand to reduce forecast risk

Answer

Postponement delays value-added activities (like customization or packaging) until demand is more certain, reducing overstock and understock risks.

Question 5

In logistics, what does 'modal shift' refer to?

Accepted Answer

Transferring freight from one mode of transportation to another (e.g., truck to rail)

Answer

Modal shift involves moving freight from one transport mode (e.g., road) to another (e.g., rail or sea) to optimize cost, carbon emissions, or speed.

BSIE - Bachelor of Science in Industrial Engineering Practice Test

BSIE - Bachelor of Science in Industrial Engineering Practice Test

BSIE Supply Chain Management & Logistics 2