Supply Chain Management Logistics 4 — Questions and Answers
Question 1: What is the 'last mile' in logistics, and why is it significant?
- The final customs inspection before import clearance
- The delivery leg from a distribution hub to the end customer, typically the costliest segment (Correct answer)
- The last leg of ocean freight before port arrival
- Quality inspection at the end of the production line
Correct answer: The delivery leg from a distribution hub to the end customer, typically the costliest segment
Last-mile delivery is the final step from a local hub to the customer's door, often accounting for 40–53% of total supply chain costs due to its fragmented, low-density nature.
Question 2: A company uses historical sales data and algorithms to pre-position inventory before customer orders are placed. This is known as:
- Reactive replenishment
- Anticipatory (push) logistics (Correct answer)
- Vendor-managed inventory
- Pull-based replenishment
Correct answer: Anticipatory (push) logistics
Anticipatory or push logistics relies on demand forecasts to move inventory proactively to stocking locations before actual orders arrive.
Question 3: Which routing strategy reduces total miles driven by optimizing the sequence of stops for a delivery fleet?
- Zone skipping
- Vehicle route optimization (VRP solving) (Correct answer)
- Milk run scheduling
- Hub-and-spoke design
Correct answer: Vehicle route optimization (VRP solving)
Vehicle Routing Problem (VRP) algorithms determine the most efficient stop sequence for each vehicle to minimize total distance, fuel, and time.
Question 4: What is a 'bonded warehouse' in international trade logistics?
- A warehouse certified for cold-chain storage
- A facility where imported goods are stored without paying customs duties until released for sale (Correct answer)
- A warehouse owned and operated by a customs broker
- A distribution center near a free-trade zone
Correct answer: A facility where imported goods are stored without paying customs duties until released for sale
A bonded warehouse allows importers to store goods under customs control, deferring duty payment until goods are withdrawn for domestic consumption or re-exported.
Question 5: Which logistics performance metric measures total distribution center operating cost as a percentage of net sales?
- Warehouse throughput rate
- Logistics cost as a percentage of sales (Correct answer)
- Inventory turnover ratio
- Order accuracy rate
Correct answer: Logistics cost as a percentage of sales
Logistics cost as a percentage of sales benchmarks overall distribution efficiency by comparing total logistics spend (transportation + warehousing) against revenue.
Question 6: A cold chain logistics provider maintains continuous temperature monitoring from manufacturer to patient for pharmaceuticals. What regulatory framework most directly governs this in the US?
- ISO 14001 environmental standards
- FDA Good Distribution Practices (GDP) and 21 CFR Part 211 (Correct answer)
- DOT HazMat regulations 49 CFR
- OSHA workplace safety standards
Correct answer: FDA Good Distribution Practices (GDP) and 21 CFR Part 211
The FDA's GDP guidelines and 21 CFR regulations require pharmaceutical distributors to maintain validated temperature-controlled storage and transportation throughout the supply chain.
Question 7: What is 'zone skipping' in parcel logistics?
- Avoiding high-cost delivery zones by rerouting through cheaper regions
- Bypassing intermediate carrier hubs by injecting parcels closer to the destination zone (Correct answer)
- Skipping customs inspections for low-value shipments
- Consolidating multiple zones into a single delivery run
Correct answer: Bypassing intermediate carrier hubs by injecting parcels closer to the destination zone
Zone skipping injects freight directly into a carrier's regional hub near the destination, reducing the number of distance-based pricing zones and lowering per-parcel cost.
Supply Chain Management Logistics 4
What is the 'last mile' in logistics, and why is it significant?