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Distribution, Logistics, and Global Supply Chain Flashcards

6 cards from real CPIM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. What is the primary goal of 'reverse logistics'?

    Answer: Managing the flow of returned, recalled, or end-of-life products back through the supply chain for recovery, recycling, or disposal

    Reverse logistics encompasses the processes for collecting, sorting, refurbishing, recycling, or disposing of products moving backward through the supply chain, recovering value where possible.

  2. Which mode of transportation generally offers the lowest cost per ton-mile for bulk commodities over long distances?

    Answer: Rail

    Rail transportation offers the lowest cost per ton-mile for heavy bulk commodities over long distances due to high capacity and fuel efficiency, though it is slower and less flexible than trucking.

  3. In the context of CPIM, a 'bill of lading' (BOL) serves as:

    Answer: A legal document issued by a carrier acknowledging receipt of cargo and governing terms of transport

    The bill of lading is a legally binding document between the shipper and carrier that serves as a receipt for goods, a contract of carriage, and sometimes a title document.

  4. What is 'intermodal transportation'?

    Answer: Combining two or more modes of transportation (such as rail and truck) to move freight in the same container

    Intermodal transportation moves cargo in a standard container or unit across multiple modes (e.g., ocean then rail then truck) without handling the freight itself at each transfer point.

  5. In procurement, 'spend analysis' is used to:

    Answer: Analyze purchasing data to identify savings opportunities, consolidation potential, and supplier performance patterns

    Spend analysis systematically examines what an organization buys, from whom, and at what price to uncover consolidation opportunities, maverick spend, and strategic sourcing priorities.

  6. What is the purpose of 'safety stock' in a distribution system?

    Answer: To buffer against demand variability and supply uncertainty to prevent stockouts

    Safety stock is extra inventory held beyond average expected demand to protect service levels against variability in demand and supply lead times.