Global Supply Chain Coordination Flashcards
7 cards from real CIM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Global Supply Chain Coordination flashcards as text
Which document serves as the primary contract between a shipper and an ocean carrier for international freight?
Answer: Bill of lading
The bill of lading is both a receipt for goods and a contract of carriage between the shipper and the ocean carrier.
What is the main purpose of a Customs Broker in global supply chain operations?
Answer: To prepare and file import/export documentation on behalf of importers and exporters
Customs brokers are licensed professionals who prepare and file documentation required for customs clearance on behalf of their clients.
In global supply chain management, what does 'nearshoring' refer to?
Answer: Relocating manufacturing to a nearby country rather than a distant one
Nearshoring involves relocating business operations to a neighboring or nearby country to reduce logistics complexity and lead times.
Which risk management strategy involves holding safety stock at multiple international distribution centers?
Answer: Risk pooling
Risk pooling distributes inventory across multiple locations to reduce the impact of demand variability and supply disruptions.
What is 'landed cost' in the context of global sourcing decisions?
Answer: The total cost including purchase price, freight, insurance, duties, and customs fees
Landed cost encompasses all costs incurred to bring goods to the destination, including purchase price, freight, insurance, tariffs, and customs clearance fees.
Which global inventory strategy positions finished goods inventory close to the end customer in multiple regional locations?
Answer: Decentralized distribution
Decentralized distribution places inventory in regional facilities closer to customers, reducing lead times at the cost of higher total inventory.
What is the primary function of a Free Trade Zone (FTZ) in supply chain management?
Answer: To allow goods to be stored, manipulated, or manufactured without paying customs duties until they enter the domestic market
Free Trade Zones allow companies to defer, reduce, or eliminate customs duties on goods processed within the zone until they enter the domestic commerce.