Practice Test Geeks(COM) Certified Operations Manager Practice Test
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Supply Chain & Logistics Management Flashcards

7 cards from real COM 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 & Logistics Management flashcards as text

  1. Which transportation mode offers the LOWEST cost per ton-mile for bulk commodities over long distances?

    Answer: Rail freight

    Rail freight provides the lowest cost per ton-mile for bulk commodities over long distances due to high capacity and fuel efficiency.

  2. In supply chain management, 'postponement' strategy involves:

    Answer: Deferring product customization to as late as possible in the supply chain

    Postponement defers final product differentiation (assembly, labeling, packaging) until actual customer orders are received, reducing finished goods inventory risk.

  3. A vendor-managed inventory (VMI) arrangement means the:

    Answer: Supplier monitors customer inventory levels and triggers replenishment

    In VMI, the supplier takes responsibility for monitoring the customer's inventory and initiating replenishment orders when stock falls to agreed levels.

  4. Which term describes the total cost of a product over its entire life, including purchase price, operating, maintenance, and disposal costs?

    Answer: Total cost of ownership (TCO)

    Total Cost of Ownership (TCO) captures all costs associated with acquiring and using a product or service throughout its entire lifecycle.

  5. In incoterms, DDP (Delivered Duty Paid) means the seller is responsible for:

    Answer: All costs and risks until goods are delivered to the buyer's location

    DDP places maximum obligation on the seller, who bears all costs and risks — including import duties, taxes, and last-mile delivery — to the named destination.

  6. The Economic Order Quantity (EOQ) model minimizes total inventory costs by balancing:

    Answer: Ordering costs and holding costs

    EOQ finds the optimal order quantity that minimizes the sum of ordering costs (per order placed) and holding costs (per unit stored over time).

  7. A company implements a Kanban system primarily to:

    Answer: Signal replenishment needs and limit work-in-process inventory

    Kanban is a pull-based visual signaling system that triggers replenishment only when inventory is consumed, limiting WIP and reducing overproduction.