Supply Chain Management & Logistics Flashcards
7 cards from real CMS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Supply Chain Management & Logistics flashcards as text
Which metric measures the percentage of customer orders fulfilled completely, on time, and without damage?
Answer: Perfect Order Rate
The Perfect Order Rate measures orders that are complete, accurate, on time, and undamaged, making it a comprehensive supply chain performance metric.
In transportation management, what does 'LTL' stand for and what is its defining characteristic?
Answer: Less-Than-Truckload — shipments that don't fill an entire truck
LTL (Less-Than-Truckload) shipping combines multiple shippers' freight into one truck, reducing costs for each shipper who doesn't need a full trailer.
What is the 'bullwhip effect' in supply chain management?
Answer: The amplification of demand variability as orders move upstream in the supply chain
The bullwhip effect describes how small demand fluctuations at the retail level get amplified into larger swings in orders placed by wholesalers, distributors, and manufacturers.
A company wants to reduce total landed cost. Which factor is NOT typically included in landed cost calculations?
Answer: Product marketing and advertising expenses
Landed cost includes all costs to bring a product to its destination (freight, duties, insurance, handling), but not marketing or advertising expenses.
Which supply chain collaboration model requires suppliers to share real-time point-of-sale data to jointly plan replenishment?
Answer: Collaborative Planning, Forecasting, and Replenishment (CPFR)
CPFR is a structured collaboration process where trading partners share POS data and jointly develop demand forecasts and replenishment plans.
In warehouse management, what is 'slotting optimization'?
Answer: Strategically assigning product locations to maximize picking efficiency
Slotting optimization assigns SKU storage locations based on pick frequency, weight, and size to minimize travel time and improve picker productivity.
A manufacturer adopts a 'postponement' strategy. What does this involve?
Answer: Deferring final product differentiation until closer to actual customer demand
Postponement delays the final configuration, assembly, or customization of a product until demand is known, reducing inventory risk and improving responsiveness.