Supply Chain & Logistics Management Flashcards

Which international trade term (Incoterm) places maximum responsibility on the seller, requiring them to deliver goods to a named destination with all duties and taxes paid?

Answer: DDP (Delivered Duty Paid)

DDP (Delivered Duty Paid) places the greatest obligation on the seller, who must arrange transport, insurance, export and import clearance, and pay all duties to the named destination.

A packaging engineer is tasked with reducing supply chain complexity. Which action would BEST achieve this goal?

Answer: Standardizing package dimensions to enable better pallet patterns across SKUs

Standardizing package dimensions reduces SKU proliferation complexity, improves pallet utilization, simplifies warehousing, and streamlines logistics operations.

In supply chain risk management, what does the term 'bullwhip effect' describe?

Answer: The amplification of demand variability as orders move upstream through the supply chain

The bullwhip effect describes how small fluctuations in consumer demand become increasingly amplified as they travel upstream through the supply chain, causing excessive inventory swings.

Which packaging characteristic directly enables efficient automated sortation in fulfillment centers?

Answer: Consistent, scannable barcodes on flat surfaces with high contrast

Automated sorters depend on consistently placed, high-contrast barcodes on flat, non-reflective surfaces to reliably scan packages moving at high speed on conveyor systems.

A company implements a 'milk run' logistics strategy. What does this approach involve?

Answer: A single vehicle making scheduled stops at multiple suppliers to consolidate pickups

A milk run uses one vehicle to make regular, sequential stops at multiple suppliers to collect smaller quantities, consolidating shipments and reducing transportation costs.

What is the significance of 'days of supply' as a supply chain metric for packaging materials?

Answer: It indicates how long current inventory will last at current consumption rates, guiding reorder timing

Days of supply tells managers how long existing packaging inventory will sustain production at current usage rates, enabling proactive reordering before stockouts occur.

When a packaging team conducts a 'value stream map' of their supply chain, what is the primary objective?

Answer: To visually identify all steps, information flows, and waste in the current process from supplier to customer

Value stream mapping visually depicts every step and information flow in a process to identify non-value-adding activities (waste) that can be eliminated to improve flow.