Supply Chain Management Logistics 2

Question 1

Which logistics strategy involves positioning inventory closer to customers to reduce delivery lead times?

Accepted Answer

Forward deployment

Answer

Forward deployment places inventory in regional distribution centers or fulfillment hubs near end customers to shorten last-mile delivery time.

Question 2

What does the term 'dwell time' refer to in freight logistics?

Accepted Answer

Time cargo sits idle at a port or terminal

Answer

Dwell time is the period cargo remains at a port, rail yard, or terminal without moving, which increases costs and reduces asset utilization.

Question 3

A company ships products using a mix of ocean freight and rail inland. This is an example of what logistics mode?

Accepted Answer

Intermodal transportation

Answer

Intermodal transportation uses two or more transport modes (e.g., ocean + rail) with cargo in the same container throughout the journey.

Question 4

Which KPI measures the percentage of orders delivered on time and in full without any defects?

Accepted Answer

Perfect order rate

Answer

Perfect order rate combines on-time delivery, complete shipment, correct documentation, and damage-free delivery into one composite metric.

Question 5

In transportation management, what is a 'dead head' mile?

Accepted Answer

Miles driven with an empty trailer

Answer

Dead head (or empty) miles occur when a truck travels without cargo, reducing carrier profitability and increasing cost per loaded mile.

Supply Chain Management Practice Test