CEC Supply Chain & Fulfillment 2

Question 1

What is 'dropshipping' in the context of ecommerce fulfillment?

Accepted Answer

Selling products without holding inventory, where the supplier ships directly to the customer

Answer

Dropshipping allows retailers to sell products without holding stock, as the supplier fulfills orders directly to the end customer.

Question 2

Which metric measures the percentage of orders shipped complete and on time without damage or errors?

Accepted Answer

Perfect Order Rate

Answer

The Perfect Order Rate measures the percentage of orders delivered complete, on time, undamaged, and with accurate documentation.

Question 3

A 3PL (Third-Party Logistics) provider typically offers which combination of services?

Accepted Answer

Warehousing, transportation, and fulfillment

Answer

3PLs specialize in outsourced logistics services including warehousing, pick-and-pack, and transportation management.

Question 4

What is 'safety stock' in inventory management?

Accepted Answer

Extra inventory kept to prevent stockouts due to demand variability or supply delays

Answer

Safety stock is buffer inventory maintained to protect against unexpected demand spikes or supplier lead time variability.

Question 5

Which fulfillment strategy involves stocking inventory in multiple warehouses closer to end customers?

Accepted Answer

Distributed fulfillment

Answer

Distributed fulfillment places inventory in regional warehouses to reduce shipping distances and delivery times.

(CEC) Certified Ecommerce Consultant Practice Test