L6M10 CIPS Global Logistics Strategy Free Practice Exam Questions (2025 Updated)

3PLs act as intermediariesin reverse supply chains, orchestrating network governance and facilitating supply chain management (SCM) best practices for client organizations. [P-186]

Reverse logistics helps organizations meet sustainability goals by using recycled materials in production. [P-178]

The quality and availability of returned products are often not known in advance, complicating recovery decisions. [P-178]

Closed loop supply chains are characterized by their design to consider both forward and reverse flows activities and processes in a cyclical motion with minimal leakage or losses. [P-144]

Outsourcing logistics activities to a 3PLcentralizesorder processing, optimizesasset utilization, and reducestransaction costs, resulting in cost efficiency. [P-186]

Customers prioritize refunds/replacements, while suppliers focus on extracting residual value. [P-181]

E-commerce returns are nearly double counter sales returns, increasing complexity. [P-150]

Trust and collaboration between members of the supply chain are critical for successful reverse logistics programs. [P-174]

3PLs consolidate operations to achieve economies of scale. [P-186]

Efficient sourcing and integration of raw materialsensure faster production and time-to-market, which is critical in fast-moving industries. [P-12]

Thetotal cost conceptconsiders the overall impact on inventory management costs, prioritizing end-to-end cost reduction over isolated savings. [P-7]

In the given scenario, the company wants to maintain product neutrality and customization possibilities for as long as possible. This aligns with the concept of manufacturing postponement, where a standard product is produced, but customization and personalization are delayed until customer requirements are confirmed or an order is placed. This strategy allows for flexibility in product design and customization while reducing the risk of producing unnecessary variations prematurely. [P-60]

Third-party logistics (3PL)involves outsourcing logistics functions to specialized providers such as DHL and FedEx to improve efficiency and responsiveness. [P-38]

Therelationship between the OEM and the buyerinfluences strategic decisions, as a weak partnership may push the OEM to develop its own brand. [P-40]

Sourcing locallyshortens the transportation pipeline, reduces inventory holding costs, and minimizes the risk of product obsolescence. [P-11]

Natural disastersandweather eventsdisrupt transportation and facilities.

Corruptioncan lead to inefficiencies and breakdowns in transportation networks.

Currency fluctuationsmay cause financial disruptions affecting logistics operations.

Law & disputesare not listed as key factors affecting transportation breakdowns. [P-72]

Balancing inventory levelsis crucial to prevent unnecessary costs from excess stock and warehousing while ensuring supply chain efficiency. [P-4]

Foreign exchange riskmeasures the impact of currency fluctuations when conducting transactions in different currencies, affecting supply chain costs. [P-63]

Vision pickinguses augmented reality to overlay information onto employees' vision, streamlining picking processes in distribution centers. [P-48]