CPL Supply Chain Operations & Logistics Management 2

Question 1

Which inventory management technique classifies items into A, B, and C categories based on annual dollar usage?

Accepted Answer

ABC Analysis

Answer

ABC Analysis segments inventory by annual dollar value, allowing managers to focus the most attention on the high-value 'A' items.

Question 2

In logistics, what does the term 'cross-docking' primarily eliminate?

Accepted Answer

The need for long-term storage in a warehouse

Answer

Cross-docking transfers inbound shipments directly to outbound vehicles with minimal or no storage time, reducing warehousing costs.

Question 3

A company's safety stock level is primarily set to protect against which type of uncertainty?

Accepted Answer

Variability in demand and supplier lead times

Answer

Safety stock acts as a buffer against unexpected spikes in customer demand or delays in supplier delivery.

Question 4

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

Accepted Answer

Rail

Answer

Rail transport has a very low cost per ton-mile and is especially economical for heavy, bulk commodities across long distances.

Question 5

Under Incoterms, which term places the maximum responsibility on the seller, including delivery to the buyer's named destination with all duties paid?

Accepted Answer

DDP (Delivered Duty Paid)

Answer

DDP requires the seller to bear all costs and risks, including import duties and taxes, until the goods reach the buyer's named destination.

(CPL) Certified Professional Logistician Practice Test

(CPL) Certified Professional Logistician Practice Test

CPL Supply Chain Operations & Logistics Management 2