CLA Supply Chain & Logistics Fundamentals 5 — Questions and Answers
Question 1: A postponement strategy in supply chain design means:
- Holding production until year-end
- Delaying supplier payments to improve cash flow
- Postponing shipments to fill trucks
- Delaying final product differentiation until customer demand is better known (Correct answer)
Correct answer: Delaying final product differentiation until customer demand is better known
Postponement delays customization so generic inventory can serve multiple end products.
Question 2: Which supply chain strategy is best suited to innovative products with unpredictable demand?
- Single-sourcing low-cost chain
- Responsive (agile) supply chain (Correct answer)
- Push-only supply chain
- Efficient (lean) supply chain
Correct answer: Responsive (agile) supply chain
Responsive supply chains handle demand uncertainty for innovative products better than cost-focused efficient chains.
Question 3: The push-pull boundary in a supply chain marks the point where:
- Goods cross international borders
- Ownership transfers from carrier to consignee
- Operations shift from forecast-driven to order-driven (Correct answer)
- Inventory is written off
Correct answer: Operations shift from forecast-driven to order-driven
Upstream of the boundary is forecast-driven (push); downstream responds to actual orders (pull).
Question 4: Vendor-managed inventory (VMI) means:
- The supplier monitors the buyer's stock and decides replenishment (Correct answer)
- The buyer places all replenishment orders manually
- Vendors hold no inventory
- Inventory is owned by a 3PL
Correct answer: The supplier monitors the buyer's stock and decides replenishment
In VMI, the supplier takes responsibility for maintaining the customer's inventory levels.
Question 5: Total landed cost includes which of the following?
- Retail markup and sales tax
- Unit price plus freight, duties, insurance, and handling (Correct answer)
- Freight costs only
- Only the supplier's unit price
Correct answer: Unit price plus freight, duties, insurance, and handling
Landed cost captures all costs to get a product to its destination, not just purchase price.
Question 6: Reverse logistics primarily deals with:
- Expedited outbound shipments
- Inbound raw materials from suppliers
- Backhaul pricing negotiations
- Product returns, repairs, recycling, and disposal (Correct answer)
Correct answer: Product returns, repairs, recycling, and disposal
Reverse logistics manages product flow from the customer back toward the origin.
Question 7: Which approach is most effective at reducing supply risk from a single critical supplier?
- Extending payment terms
- Increasing order frequency with that supplier
- Qualifying a second source or dual sourcing (Correct answer)
- Reducing safety stock
Correct answer: Qualifying a second source or dual sourcing
Dual sourcing reduces dependence on one supplier and mitigates disruption risk.
