CLP Logistics Cost Management & Financial Analysis 2

Question 1

The inventory turnover ratio is calculated as:

Accepted Answer

Cost of Goods Sold divided by Average Inventory

Answer

Average Inventory divided by Net Sales

Answer

Net Sales divided by Total Inventory Value

Answer

Total Inventory divided by Operating Costs

Question 2

Cost-to-serve analysis helps logistics managers primarily to:

Accepted Answer

Determine the true profitability of serving specific customers or channels

Answer

Negotiate lower freight rates with carriers

Answer

Calculate optimal reorder points for slow-moving items

Answer

Benchmark warehouse costs against competitors

Question 3

Landed cost includes all of the following EXCEPT:

Accepted Answer

Retail markup applied by the buyer

Answer

Ocean freight charges

Answer

Customs duties and tariffs

Answer

Cargo insurance premiums

Question 4

Days Inventory Outstanding (DIO) measures:

Accepted Answer

The average number of days inventory is held before being sold

Answer

The time taken to fulfill a customer order

Answer

The average days to collect payment from customers

Answer

The number of days inventory spends in transit

Question 5

Return on Logistics Assets (ROLA) best measures:

Accepted Answer

The profitability generated relative to assets deployed in logistics operations

Answer

The ratio of logistics costs to total company assets

Answer

The amount recovered from selling obsolete logistics equipment

Answer

The savings achieved through logistics process improvements

Question 6

A logistics scorecard is primarily used to:

Accepted Answer

Track and measure key logistics KPIs against established targets

Answer

Rate and rank freight carriers for future contract awards

Answer

Document warehouse capacity and storage utilization

Answer

Calculate employee bonus incentives based on performance

Question 7

Logistics operating margin is calculated by dividing:

Accepted Answer

Net logistics profit by net logistics revenue

Answer

Return on logistics investment by total assets

Answer

Inventory carrying costs by gross sales

Answer

Total warehousing costs by total shipment volume