Logistics Strategy & Regulatory Compliance Flashcards
7 cards from real CPL practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Logistics Strategy & Regulatory Compliance flashcards as text
A logistics manager is evaluating whether to insource or outsource warehousing. Which factor most strongly favors outsourcing to a 3PL?
Answer: Demand is highly seasonal with large volume swings throughout the year
High seasonality makes 3PL outsourcing attractive because variable costs replace fixed costs, allowing the company to scale capacity up and down without owning underutilized facilities.
The Lacey Act, as amended in 2008, imposes compliance obligations on logistics companies importing which type of product?
Answer: Wood, paper, and plant-derived products
The amended Lacey Act prohibits trade in plants and plant products (including wood and paper) harvested in violation of foreign laws, requiring importers to declare the country of harvest and species.
In a logistics network strategy review, 'service-cost trade-off analysis' is used to determine:
Answer: The right balance between customer service levels and total logistics costs
Service-cost trade-off analysis helps strategists find the point where improving service levels (e.g., faster delivery) no longer justifies the incremental cost increase.
Which compliance framework specifically governs the security of electronic data shared between logistics trading partners?
Answer: NIST Cybersecurity Framework
The NIST Cybersecurity Framework provides a widely adopted structure for managing cybersecurity risks, including data shared between logistics trading partners via EDI or API connections.
A reverse logistics strategy is LEAST likely to address which of the following scenarios?
Answer: Coordinating outbound shipments to new retail store openings
Reverse logistics covers the flow of goods from customers back to the origin (returns, recalls, recycling), not outbound shipments to new locations.
Under the Robinson-Patman Act, a logistics service provider that offers different freight rates to competing customers must be able to justify the difference based on:
Answer: Cost differences in serving each customer or meeting a competitor's price
The Robinson-Patman Act prohibits price discrimination between competing buyers unless justified by actual cost differences in serving them or the need to match a competitor's price.
Which logistics strategy concept involves positioning inventory closer to end customers by using many small, distributed fulfillment nodes rather than centralized warehouses?
Answer: Micro-fulfillment / distributed fulfillment
Micro-fulfillment or distributed fulfillment places smaller inventory nodes close to end customers to enable faster last-mile delivery, often used in e-commerce.