Certified Supply Chain Professional CSCP Practice CSCP Logistics and Distribution 1 — Questions and Answers
Question 1: A retailer receives daily replenishment shipments from a distribution center that maintains safety stock on behalf of multiple stores. Which inventory strategy does this describe?
- Vendor-managed inventory (VMI)
- Centralized safety stock pooling (Correct answer)
- Cross-docking
- Postponement
Correct answer: Centralized safety stock pooling
Centralized safety stock pooling allows a distribution center to hold safety stock on behalf of many downstream locations, reducing total system inventory through risk pooling while still providing reliable replenishment to each store.
Question 2: Which transportation mode offers the lowest cost per ton-mile for bulk commodities shipped over long distances domestically?
- Truckload (TL) trucking
- Less-than-truckload (LTL) trucking
- Rail (Correct answer)
- Air freight
Correct answer: Rail
Rail has the lowest cost per ton-mile for bulk commodities over long distances because of its high carrying capacity and fuel efficiency, making it the preferred mode for heavy, non-time-sensitive freight.
Question 3: A logistics manager wants to reduce transit time variability for inbound shipments. Which carrier selection criterion is most directly relevant?
- Transit time reliability (on-time delivery rate) (Correct answer)
- Carrier's fleet size
- Freight bill accuracy rate
- Claims settlement speed
Correct answer: Transit time reliability (on-time delivery rate)
Transit time reliability, often measured as on-time delivery rate, directly addresses variability in arrival times. Higher reliability allows planners to reduce safety stock and improve production or fulfillment scheduling.
Question 4: A distribution center processes orders by grouping multiple customer orders together and picking all items for those orders in a single pass through the warehouse. What is this picking method called?
- Zone picking
- Batch picking (Correct answer)
- Wave picking
- Discrete picking
Correct answer: Batch picking
Batch picking consolidates multiple orders into a single warehouse pick run, reducing travel time per order and increasing picker productivity, though it requires sortation downstream to separate items by order.
Question 5: Which distribution network design decision most directly affects a company's ability to offer next-day delivery to customers across a wide geographic area?
- Number and location of distribution centers (Correct answer)
- Choice of transportation mode for outbound shipments
- Warehouse management system (WMS) sophistication
- Carrier contract negotiation strategy
Correct answer: Number and location of distribution centers
The number and geographic placement of distribution centers determines how close inventory is to end customers. More strategically located DCs reduce the distance to customers, enabling next-day ground delivery across a broader area.
Question 6: A company uses a logistics model where finished goods are not produced or allocated to specific customers until after orders are received, delaying final configuration as long as possible. Which strategy does this represent?
- Make-to-stock (MTS)
- Assemble-to-order (ATO) with postponement (Correct answer)
- Engineer-to-order (ETO)
- Drop shipping
Correct answer: Assemble-to-order (ATO) with postponement
Assemble-to-order with postponement delays final product configuration until demand is known, reducing the risk of holding finished goods inventory in the wrong configuration and increasing responsiveness to actual customer orders.
Certified Supply Chain Professional CSCP Practice CSCP Logistics and Distribution 1
A retailer receives daily replenishment shipments from a distribution center that maintains safety stock on behalf of multiple stores.
Which inventory strategy does this describe?