Supply Chain Management Logistics 4

Question 1

What is the 'last mile' in logistics, and why is it significant?

Accepted Answer

The delivery leg from a distribution hub to the end customer, typically the costliest segment

Answer

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:

Accepted Answer

Anticipatory (push) logistics

Answer

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?

Accepted Answer

Vehicle route optimization (VRP solving)

Answer

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?

Accepted Answer

A facility where imported goods are stored without paying customs duties until released for sale

Answer

A bonded warehouse allows importers to store goods under customs control, deferring duty payment until goods are withdrawn for domestic consumption or re-exported.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?

Accepted Answer

Logistics cost as a percentage of sales

Answer

Logistics cost as a percentage of sales benchmarks overall distribution efficiency by comparing total logistics spend (transportation + warehousing) against revenue.

Supply Chain Management Practice Test

Supply Chain Management Practice Test

Supply Chain Management Logistics 4