The Logistics Environment Flashcards
7 cards from real CLA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 The Logistics Environment flashcards as text
Which concept describes the variability in order quantities that amplifies as you move upstream in a supply chain?
Answer: Bullwhip effect
The bullwhip effect describes how small fluctuations in consumer demand cause increasingly large swings in orders further up the supply chain.
A logistics network that uses ABC analysis is classifying inventory based on:
Answer: Annual consumption value to prioritize management attention
ABC analysis ranks items by annual consumption value: A items are high-value (few SKUs, tight control), B items are moderate, and C items are low-value (many SKUs, loose control).
When a carrier quotes a freight rate based on weight AND density combined, they are using:
Answer: Dimensional weight (DIM weight) pricing
Dimensional (DIM) weight pricing charges for the space a package occupies relative to its actual weight, ensuring carriers are compensated for bulky, lightweight shipments.
Which U.S. legislation deregulated the trucking industry in 1980, increasing competition and reducing rates?
Answer: Motor Carrier Act of 1980
The Motor Carrier Act of 1980 substantially deregulated trucking, allowing carriers to set their own rates and routes and sparking intense competition.
A 'dock appointment system' in a warehouse environment is primarily designed to:
Answer: Coordinate arrival times of carriers to prevent congestion and reduce wait times
Dock appointment systems pre-schedule carrier arrival windows, smoothing workload at receiving/shipping docks and reducing driver detention time.
In global logistics, a 'free trade zone' (FTZ) offers businesses the advantage of:
Answer: Deferring or reducing customs duties on imported goods that are re-exported or further processed
FTZs allow goods to be imported, stored, processed, or assembled with customs duties deferred or reduced until the goods enter domestic commerce or are re-exported.
Which type of carrier is legally authorized to transport freight for the general public for compensation?
Answer: Common carrier
A common carrier holds itself out to serve the general public for hire, must accept any lawful freight tendered, and is subject to public tariff regulations.