CSCP Logistics and Distribution 2

Question 1

A company ships products from a central warehouse to regional distribution centers and then to retail stores. This network structure is best described as:

Accepted Answer

Hub-and-spoke distribution

Answer

A hub-and-spoke model routes freight through central hubs (distribution centers) before sending it to final destinations (retail stores).

Question 2

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

Accepted Answer

Rail

Answer

Rail transportation has one of the lowest cost-per-ton-mile rates, making it ideal for bulk commodities over long distances.

Question 3

A retailer requires vendors to deliver products already on hangers and price-tagged, ready for the sales floor. This practice is called:

Accepted Answer

Floor-ready merchandise

Answer

Floor-ready merchandise (FRM) means products arrive pre-ticketed, pre-hung, and ready for immediate placement on the sales floor.

Question 4

The 'last mile' in logistics refers to:

Accepted Answer

The delivery of goods from a distribution center to the end customer

Answer

Last-mile delivery covers the final leg of a supply chain—from a distribution hub to the end consumer's location—and is often the most expensive segment.

Question 5

Under which Incoterm does the seller bear the maximum responsibility, delivering goods to the buyer's named destination and covering all costs and risks?

Accepted Answer

DDP (Delivered Duty Paid)

Answer

DDP requires the seller to deliver the goods to the named destination, paying all duties, taxes, and bearing all risks until delivery.

Certified Supply Chain Professional CSCP Practice Practice Test

Certified Supply Chain Professional CSCP Practice Practice Test

CSCP Logistics and Distribution 2