CLP Supply Chain Management & Planning 4

Question 1

In logistics network design, which factor most significantly influences the number of distribution centers a company should operate?

Accepted Answer

Trade-off between transportation costs and inventory/facility costs

Answer

Network design optimizes the trade-off between transportation costs (reduced by more DCs close to customers) and inventory/facility costs (reduced by fewer DCs).

Question 2

What is 'demand sensing' in modern supply chain management?

Accepted Answer

Using real-time, high-frequency data signals to detect near-term demand shifts

Answer

Demand sensing uses real-time POS, weather, social media, and other signals to detect demand shifts days or weeks before traditional forecasting systems.

Question 3

Which inventory classification system prioritizes management attention by grouping items based on their annual consumption value?

Accepted Answer

ABC analysis

Answer

ABC analysis classifies inventory into A (high value), B (medium value), and C (low value) groups based on annual consumption value, focusing management effort accordingly.

Question 4

A retailer's distribution center receives full truckloads from suppliers and immediately transfers product to outbound trucks for store delivery without putting items into storage. This practice is called:

Accepted Answer

Cross-docking

Answer

Cross-docking transfers inbound shipments directly to outbound vehicles with minimal or no storage time, reducing handling costs and cycle time.

Question 5

In supply chain risk management, 'single-source' suppliers present which primary risk?

Accepted Answer

Complete supply disruption if that one supplier fails

Answer

Single-source suppliers create concentration risk — if the supplier experiences disruption, the buyer has no alternative source and faces complete supply stoppage.

(CLP) Certified Logistics Professional Practice Test

(CLP) Certified Logistics Professional Practice Test

CLP Supply Chain Management & Planning 4