CPSM Logistics & Distribution 4

Question 1

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

Accepted Answer

Perfect order rate

Answer

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

Question 2

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

Accepted Answer

Consolidation and sorting of freight before outbound dispatch

Answer

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

Question 3

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

Accepted Answer

FOB

Answer

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

Question 4

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

Accepted Answer

Time cargo spends waiting at a terminal before pickup

Answer

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

Question 5

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

Accepted Answer

Transportation costs

Answer

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

(CPSM) Certified Professional in Supply Management Practice Test