CPSM Logistics & Distribution 3

Question 1

Which distribution strategy places inventory at a single central location and ships directly to end customers?

Accepted Answer

Centralized distribution

Answer

Centralized distribution consolidates inventory at one hub, reducing carrying costs while increasing outbound freight.

Question 2

In logistics, 'last-mile delivery' refers to which segment of the supply chain?

Accepted Answer

Distribution center to final destination

Answer

Last-mile delivery covers the final leg from a distribution point to the end customer and is often the costliest per unit.

Question 3

A company ships 1,000 units monthly with a fixed freight cost of $500 and a variable cost of $0.20/unit. What is the total logistics cost?

Accepted Answer

$700

Answer

Total cost = $500 fixed + (1,000 × $0.20) variable = $700.

Question 4

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

Accepted Answer

Rail

Answer

Rail transport provides the lowest cost per ton-mile for heavy, non-time-sensitive bulk commodities.

Question 5

What is the primary purpose of a bill of lading in logistics?

Accepted Answer

To serve as a contract and receipt for goods in transit

Answer

A bill of lading is a legal document between shipper and carrier that serves as a shipment receipt, contract of carriage, and title document.

(CPSM) Certified Professional in Supply Management Practice Test