CSCP Logistics and Distribution 5

Question 1

The total cost of logistics, including transportation, warehousing, inventory carrying, and order processing costs, is called:

Accepted Answer

Total logistics cost

Answer

Total logistics cost encompasses all costs associated with moving and storing goods through the supply chain, used to evaluate trade-offs between service levels and expenses.

Question 2

A milk run pickup schedule, where a truck visits multiple suppliers in a loop to consolidate partial loads, primarily reduces:

Accepted Answer

Inbound transportation costs

Answer

Milk runs consolidate small pickups from multiple suppliers into one truck route, reducing inbound freight costs compared to each supplier making separate full-truck deliveries.

Question 3

In US domestic trucking, a Less-than-Truckload (LTL) shipment is typically defined as freight weighing:

Accepted Answer

150–10,000 lbs

Answer

LTL shipments typically range from 150 to 10,000 lbs (some carriers up to 15,000 lbs), sharing trailer space with freight from other shippers.

Question 4

A company decides to outsource all logistics functions to a single provider that manages warehousing, transportation, and customs brokerage. This is an example of:

Accepted Answer

3PL outsourcing

Answer

Contracting all logistics functions to an external service provider is classic 3PL outsourcing, allowing the company to focus on its core business.

Question 5

Which performance metric measures the percentage of customer orders delivered complete, on time, and without damage?

Accepted Answer

Perfect order rate

Answer

The perfect order rate measures orders that are complete, on time, undamaged, and correctly documented—representing the ultimate logistics service standard.

Certified Supply Chain Professional CSCP Practice Practice Test

Certified Supply Chain Professional CSCP Practice Practice Test

CSCP Logistics and Distribution 5