MIB Global Supply Chain Management 2 — Questions and Answers
Question 1: What is a 'third-party logistics provider' (3PL)?
- A company that manufactures products for clients
- A firm that outsources its own logistics to others
- An external firm that manages logistics operations on behalf of a company (Correct answer)
- A government customs agency
Correct answer: An external firm that manages logistics operations on behalf of a company
A 3PL provider offers outsourced logistics services including warehousing, transportation, and distribution management on behalf of client companies.
Question 2: Which Incoterm places the maximum responsibility on the seller, who delivers goods to the buyer's named destination?
- EXW (Ex Works)
- FOB (Free on Board)
- DDP (Delivered Duty Paid) (Correct answer)
- CIF (Cost, Insurance, Freight)
Correct answer: DDP (Delivered Duty Paid)
DDP (Delivered Duty Paid) requires the seller to bear all costs and risks including import duties and taxes until goods are delivered to the buyer's specified destination.
Question 3: What does 'total landed cost' include in international supply chain analysis?
- Only the purchase price of goods
- Purchase price plus all costs to deliver goods to their final destination (Correct answer)
- Transportation costs only
- Duty and tariff costs only
Correct answer: Purchase price plus all costs to deliver goods to their final destination
Total landed cost encompasses the complete cost of a product including purchase price, transportation, tariffs, insurance, handling, and other fees to reach the final destination.
Question 4: The concept of 'reshoring' in global supply chains involves:
- Moving production to lower-cost offshore locations
- Returning previously offshored production back to the home country (Correct answer)
- Outsourcing to near-neighbor countries
- Expanding to new international markets
Correct answer: Returning previously offshored production back to the home country
Reshoring is the practice of bringing manufacturing or service operations back to the company's home country after previously moving them offshore.
Question 5: Which supply chain strategy prioritizes speed and responsiveness over cost efficiency, suited for unpredictable demand?
- Lean supply chain
- Agile supply chain (Correct answer)
- Efficient supply chain
- Hub-and-spoke supply chain
Correct answer: Agile supply chain
An agile supply chain is designed to respond quickly to market changes and unpredictable demand by prioritizing flexibility and speed over pure cost efficiency.
Question 6: What is 'postponement' as a global supply chain strategy?
- Delaying supplier payments
- Deferring product customization until the last possible moment (Correct answer)
- Postponing market entry decisions
- Delaying inventory ordering cycles
Correct answer: Deferring product customization until the last possible moment
Postponement defers final product customization or assembly to the point closest to the customer, reducing inventory risk while enabling market-specific configurations.
MIB Global Supply Chain Management 2
What is a 'third-party logistics provider' (3PL)?