Supply Chain & Logistics Management Flashcards
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Read the first 7 Supply Chain & Logistics Management flashcards as text
A company uses ABC analysis for inventory classification. 'A' items are best described as:
Answer: High-value items representing a small percentage of SKUs but large portion of spend
ABC analysis classifies 'A' items as those representing roughly 80% of total inventory value despite being only about 20% of total SKUs, warranting tightest control.
Which mode of international transportation is MOST appropriate for time-sensitive, high-value, low-weight shipments?
Answer: Air freight
Air freight is the fastest but most expensive transport mode, making it best suited for high-value, time-critical goods where speed justifies the premium cost.
A retailer uses point-of-sale data to automatically trigger supplier replenishment orders. This best describes:
Answer: Pull-based supply chain
A pull-based supply chain is driven by actual customer demand signals (such as POS data) rather than forecasts, triggering replenishment only when consumption occurs.
In logistics, 'drayage' refers to:
Answer: Short-distance movement of containers, typically port to nearby distribution center
Drayage is the short-distance trucking of intermodal containers, most commonly between a seaport or rail yard and a nearby warehouse or distribution center.
A supply chain using postponement with a 'form postponement' strategy would:
Answer: Produce generic products and customize them only after receiving orders
Form postponement delays final product configuration or assembly until actual customer demand is known, keeping items in a semi-finished state to enable mass customization.
Which supply chain strategy is MOST appropriate for products with high demand uncertainty and short product lifecycles?
Answer: Responsive (agile) supply chain
A responsive (agile) supply chain prioritizes speed and flexibility over cost efficiency, making it ideal for volatile demand and products with short lifecycles.
The landed cost of an imported product includes:
Answer: Purchase price, freight, insurance, customs duties, and all fees to deliver to the buyer's facility
Landed cost is the total cost of acquiring a product at its final destination, including purchase price, international freight, insurance, customs duties, tariffs, and other import fees.