Supply Chain Management Logistics 3

Question 1

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

Accepted Answer

Planning, executing, and optimizing the movement of goods

Answer

A TMS automates carrier selection, route planning, freight auditing, and shipment tracking to reduce transportation costs and improve service levels.

Question 2

Which warehousing technique assigns the most frequently picked items to locations nearest the shipping dock?

Accepted Answer

ABC slotting

Answer

ABC slotting classifies SKUs by pick frequency and places high-velocity (A) items in the most ergonomic, accessible slots to minimize travel time.

Question 3

A shipper consolidates multiple small shipments from different customers into one full truckload. This practice is called:

Accepted Answer

Load consolidation (LTL pooling)

Answer

LTL pooling or load consolidation combines partial shipments heading to the same region into one truckload to achieve lower per-unit freight costs.

Question 4

What does 'landed cost' include in international logistics?

Accepted Answer

Purchase price plus freight, insurance, duties, and other import fees

Answer

Landed cost represents the total cost of a product at the destination, encompassing purchase price, ocean/air freight, insurance, customs duties, and port fees.

Question 5

Which inventory control method requires physically counting all stock at one scheduled point in time?

Accepted Answer

Periodic (physical) inventory count

Answer

Periodic or physical inventory count involves shutting down or pausing operations to count all items simultaneously, typically annually or quarterly.

Supply Chain Management Practice Test

Supply Chain Management Practice Test

Supply Chain Management Logistics 3