CPSM Logistics & Distribution 5

Question 1

Which transportation regulation in the US governs hours of service for commercial truck drivers?

Accepted Answer

Federal Motor Carrier Safety Regulations (FMCSR)

Answer

FMCSR regulations set maximum driving hours and mandatory rest periods for commercial vehicle operators in the US.

Question 2

In logistics network design, the 'gravity model' is used to determine:

Accepted Answer

Optimal facility location based on demand and cost

Answer

The gravity model finds the optimal warehouse location by minimizing the weighted distance between the facility and demand points.

Question 3

What is the primary benefit of using a Transportation Management System (TMS)?

Accepted Answer

Optimizing carrier selection, routing, and freight audit

Answer

A TMS optimizes carrier selection, consolidates shipments, tracks freight, and automates freight audit and payment.

Question 4

Which logistics concept defers final product configuration until the latest possible point to serve multiple markets from common inventory?

Accepted Answer

Postponement

Answer

Postponement delays differentiation steps (labeling, assembly, packaging) to reduce forecast risk and inventory variety.

Question 5

A company uses dedicated contract carriage (DCC) instead of common carriers. The main advantage of DCC is:

Accepted Answer

Exclusive service, brand control, and consistent capacity

Answer

DCC provides a shipper with dedicated fleet capacity, branded vehicles, and service consistency unavailable from common carriers.

(CPSM) Certified Professional in Supply Management Practice Test