Logistics & Distribution Flashcards

Which logistics KPI measures the percentage of orders shipped complete and on time without damage?

Answer: Perfect order rate

The perfect order rate captures all four dimensions: on time, complete, undamaged, and accurately documented.

In a hub-and-spoke distribution network, the 'hub' primarily serves which function?

Answer: Consolidation and sorting of freight before outbound dispatch

Hubs consolidate inbound freight from spokes and sort it for efficient outbound delivery to destination spokes.

Which incoterm transfers risk to the buyer once goods are loaded on board the vessel at the origin port?

Answer: FOB

Under FOB (Free On Board), risk transfers to the buyer when goods pass the ship's rail at the named port of shipment.

What does 'dwell time' represent in port and terminal logistics?

Answer: Time cargo spends waiting at a terminal before pickup

Dwell time is the period cargo sits idle at a terminal waiting to be picked up, and excessive dwell increases congestion and cost.

A company switches from air to ocean freight for non-urgent shipments. This decision primarily targets which cost category?

Answer: Transportation costs

Switching to ocean freight directly lowers transportation costs, though it may increase inventory in transit.

Which distribution method involves goods being unloaded from inbound trucks and immediately loaded onto outbound trucks with minimal storage?

Answer: Cross-docking

Cross-docking transfers goods directly from receiving docks to shipping docks, eliminating or minimizing storage time.

Third-party logistics (3PL) providers most commonly offer which service bundle?

Answer: Transportation, warehousing, and fulfillment

3PLs specialize in outsourced logistics services including transportation management, warehousing, and order fulfillment.