CLP Supply Chain Management & Planning 5

Question 1

Which technology enables real-time tracking of shipments, assets, and inventory using radio frequency signals without requiring line-of-sight scanning?

Accepted Answer

RFID (Radio Frequency Identification)

Answer

RFID uses radio frequency signals to identify and track tagged items without requiring line-of-sight, enabling bulk scanning and real-time inventory visibility.

Question 2

In lean supply chain management, 'muda' refers to:

Accepted Answer

Any activity that consumes resources without adding customer value (waste)

Answer

Muda is the Japanese term for waste — any activity, process, or resource consumption that does not add value from the customer's perspective.

Question 3

A company's Days Sales of Inventory (DSI) increased from 30 to 45 days over one year. What does this indicate?

Accepted Answer

Inventory is building up relative to sales, indicating potential overstocking or slowing demand

Answer

An increasing DSI means inventory is being held longer before being sold, which may signal excess stock, weakening demand, or poor inventory management.

Question 4

Which supply chain strategy is most appropriate for products with short lifecycles, unpredictable demand, and high contribution margins?

Accepted Answer

Agile (responsive) supply chain focused on speed and flexibility

Answer

Agile supply chains prioritize responsiveness and flexibility, which is critical for short-lifecycle, unpredictable demand products where speed-to-market outweighs cost efficiency.

Question 5

What does 'Total Cost of Ownership' (TCO) analysis reveal when evaluating suppliers that a simple unit price comparison does not?

Accepted Answer

All costs associated with acquiring, using, and disposing of a product including quality, lead time, and risk

Answer

TCO captures all costs beyond unit price including transportation, quality failures, inventory carrying costs, risk, and administrative costs to provide a true cost comparison.

(CLP) Certified Logistics Professional Practice Test

(CLP) Certified Logistics Professional Practice Test

CLP Supply Chain Management & Planning 5