CSCP Logistics and Distribution 4 — Questions and Answers
Question 1: Which ocean freight service type offers a fixed sailing schedule between specific ports, similar to a bus route?
- Tramp shipping
- Charter service
- Liner service (Correct answer)
- Feeder service
Correct answer: Liner service
Liner services operate on fixed routes with published schedules and tariffs, providing predictable transit times for shippers.
Question 2: Under a consignment inventory arrangement, who owns the inventory while it sits in the buyer's warehouse?
- The buyer
- The seller/supplier (Correct answer)
- A third-party logistics provider
- A financial institution
Correct answer: The seller/supplier
In a consignment arrangement, the supplier retains ownership of inventory until the buyer sells or uses it, at which point payment is triggered.
Question 3: A warehouse management system (WMS) directive that instructs a picker to use a combination of tote, voice, and light-based cues is implementing:
- Pick-to-light
- Multi-modal directed picking (Correct answer)
- Batch picking
- Wave picking
Correct answer: Multi-modal directed picking
Multi-modal directed picking combines different guidance technologies (pick-to-light, voice, RF) to optimize accuracy and speed across various warehouse zones.
Question 4: The practice of delaying final product differentiation until the latest possible point in the supply chain is called:
- Mass customization
- Postponement (Correct answer)
- Just-in-time delivery
- Modular production
Correct answer: Postponement
Postponement defers value-added activities (labeling, assembly, configuration) until customer demand is known, reducing inventory risk.
Question 5: A company uses a carrier that transports freight under a specific agreed-upon rate and service level for a set period. This arrangement is a:
- Spot market shipment
- Contract carrier agreement (Correct answer)
- Common carrier tariff
- Freight auction
Correct answer: Contract carrier agreement
A contract carrier agreement establishes negotiated rates and service commitments between a shipper and carrier for a defined period, offering rate stability.
Question 6: Which document serves as both a receipt for cargo and a contract of carriage in ocean freight?
- Commercial invoice
- Packing list
- Bill of lading (Correct answer)
- Certificate of origin
Correct answer: Bill of lading
A bill of lading (B/L) functions as a receipt of goods by the carrier, a contract of carriage, and sometimes a document of title for the cargo.
Question 7: Cross-docking eliminates which primary warehouse activity?
- Receiving
- Putaway and storage (Correct answer)
- Shipping
- Quality inspection
Correct answer: Putaway and storage
Cross-docking transfers incoming shipments directly to outbound vehicles without storing them, eliminating the putaway and storage steps.
CSCP Logistics and Distribution 4
Which ocean freight service type offers a fixed sailing schedule between specific ports, similar to a bus route?