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.
Read the first 6 Distribution, Logistics, and Global Supply Chain flashcards as text
What is the primary purpose of a 'distribution center' (DC) in a supply chain?
Answer: To receive, sort, store, and ship products efficiently to serve retail or end customers in a region
A distribution center consolidates inbound shipments from suppliers and redistributes products to downstream customers or retail locations, improving delivery speed and reducing transportation costs.
In transportation management, 'less-than-truckload' (LTL) shipping is used when:
Answer: A shipper's cargo does not fill an entire truck and shares space with other shippers' freight
LTL shipping consolidates smaller shipments from multiple shippers into one truck, offering lower cost than full truckload (FTL) but typically with longer transit times and more handling.
Which Incoterm places the maximum obligation on the seller?
Answer: DDP (Delivered Duty Paid)
DDP requires the seller to deliver goods to the named destination, cleared for import, with all duties and taxes paid — the greatest possible seller obligation under Incoterms.
What is 'cross-docking' in warehouse operations?
Answer: Transferring inbound goods directly to outbound shipments with little or no storage time
Cross-docking moves products from receiving docks to shipping docks with minimal storage, reducing handling, warehouse space requirements, and order cycle time.
Third-party logistics (3PL) providers offer which primary value to companies?
Answer: Outsourced logistics services including transportation, warehousing, and distribution management
3PLs provide outsourced logistics expertise, assets, and services that allow companies to focus on their core competencies while leveraging the 3PL's scale and specialization.
In global supply chain management, 'landed cost' includes:
Answer: Product cost plus all costs to get goods to the destination, including freight, duties, insurance, and handling
Landed cost is the total cost of a product from its origin to its final destination, encompassing purchase price, ocean or air freight, customs duties, taxes, insurance, and local delivery.