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 term refers to the practice of shipping products directly from a manufacturer or supplier to the end customer, bypassing the retailer's warehouse?
Answer: Drop shipping
Drop shipping has the supplier or manufacturer fulfill orders directly to the end customer, eliminating the retailer's need to hold or handle inventory.
A logistics manager reviewing 'dwell time' at a port is measuring:
Answer: How long containers sit at the port terminal before being picked up or loaded
Dwell time is the amount of time a container remains at the port terminal without being moved, a key efficiency metric that affects port congestion and carrier costs.
In warehousing, 'slotting optimization' refers to:
Answer: Assigning storage locations to products based on pick frequency, size, and weight to maximize efficiency
Slotting optimization places high-velocity items in easily accessible locations and sequences picks logically to minimize travel time and improve throughput.
Which logistics cost category includes expenses for holding inventory such as storage, insurance, obsolescence, and opportunity cost?
Answer: Carrying (holding) costs
Carrying costs (also called holding costs) include all expenses related to storing inventory: warehousing, insurance, taxes, spoilage, obsolescence, and the cost of capital tied up.
A 'service level agreement' (SLA) between a shipper and a 3PL provider typically defines:
Answer: Performance standards, metrics, and consequences for failure to meet agreed logistics outcomes
An SLA establishes measurable performance targets—on-time delivery rates, order accuracy, damage rates—and outlines remedies or penalties if those standards are not met.
What is the primary purpose of a 'packing list' that accompanies an international shipment?
Answer: To detail the contents, quantity, weight, and dimensions of each package for customs and receiving verification
A packing list provides a detailed itemization of shipment contents by package, helping customs officials inspect cargo and receivers verify what was shipped.
Which metric represents the percentage of customer orders fulfilled completely and on time from available stock?
Answer: Perfect order rate
The perfect order rate measures the percentage of orders delivered complete, on time, damage-free, and with accurate documentation—a comprehensive logistics performance indicator.