Supply Chain Management Logistics 5

Question 1

Which logistics concept involves holding minimal finished goods inventory and instead delaying final product configuration until a customer order is received?

Accepted Answer

Postponement (delayed differentiation)

Answer

Postponement delays value-added activities (labeling, kitting, final assembly) until demand is known, reducing inventory risk and enabling mass customization.

Question 2

A carrier's freight rate decreases per unit as shipment weight increases. This pricing structure is called:

Accepted Answer

Tapering rate structure

Answer

A tapering rate structure means freight rates decline per unit of weight or distance as volume increases, rewarding shippers of larger loads.

Question 3

In reverse logistics, what is the primary goal of a 'refurbishment' process?

Accepted Answer

Restoring returned products to a like-new or sellable condition

Answer

Refurbishment repairs and restores returned or defective products so they can be resold, often in secondary markets, recovering product value.

Question 4

Which international shipping term (Incoterm) means the seller is responsible for all costs and risks until the goods are delivered to a named destination port, including import duties?

Accepted Answer

DDP (Delivered Duty Paid)

Answer

Under DDP, the seller bears all costs and risks including import clearance and duties, delivering goods to the buyer's named destination.

Question 5

What is the main advantage of a hub-and-spoke distribution network compared to a point-to-point network?

Accepted Answer

Reduced total routes and consolidated freight volumes, lowering per-unit cost

Answer

Hub-and-spoke networks consolidate freight at central hubs, reducing the number of direct routes and enabling higher-volume, lower-cost transportation between hubs.

Supply Chain Management Practice Test

Supply Chain Management Practice Test

Supply Chain Management Logistics 5