Supply Chain Operations & Logistics Management 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 Supply Chain Operations & Logistics Management flashcards as text
In supply chain risk management, 'supply chain resilience' refers to a system's ability to:
Answer: Recover quickly from disruptions and return to normal operations
Resilience is the capacity to anticipate, absorb, and recover from disruptions while maintaining continuity of supply.
Which of the following best describes the 'bullwhip effect' in supply chains?
Answer: Amplification of demand variability as orders move upstream through the supply chain
The bullwhip effect occurs when small fluctuations in end-customer demand cause increasingly large swings in orders placed up the supply chain.
A logistics manager wants to reduce total landed cost. Which factor would NOT typically be included in that calculation?
Answer: Product warranty costs
Total landed cost includes purchase price, freight, duties, insurance, and handling, but excludes post-sale costs like warranties.
Lean logistics focuses on reducing waste, known in Japanese as:
Answer: Muda
Muda is the Japanese term for waste, and eliminating the seven types of muda is central to lean logistics and manufacturing.
Which distribution strategy ships products directly from the manufacturer to the end customer, bypassing intermediaries?
Answer: Drop shipping
Drop shipping allows retailers to sell products without holding inventory; the manufacturer ships directly to the customer.
When evaluating carrier performance, 'transit time reliability' is best measured by:
Answer: Standard deviation of transit times compared to promised delivery dates
Reliability is about consistency, so standard deviation (variability around the mean) best captures how predictable a carrier's transit times are.
Which costing method assigns logistics costs based on the actual resources consumed by each product or customer?
Answer: Activity-Based Costing (ABC)
Activity-Based Costing traces costs to specific activities (e.g., picking, packing, shipping) and then to the products or customers that use those activities.