COM Supply Chain & Logistics Management 3

Question 1

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

Accepted Answer

Rail freight

Answer

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

Question 2

In supply chain management, 'postponement' strategy involves:

Accepted Answer

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

Answer

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

Question 3

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

Accepted Answer

Supplier monitors customer inventory levels and triggers replenishment

Answer

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

Question 4

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

Accepted Answer

Total cost of ownership (TCO)

Answer

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

Question 5

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

Accepted Answer

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

Answer

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.

(COM) Certified Operations Manager Practice Test

(COM) Certified Operations Manager Practice Test

COM Supply Chain & Logistics Management 3