Free PDF Quiz Updated L6M10 - New Global Logistics Strategy Test Review

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CIPS Global Logistics Strategy Sample Questions (Q38-Q43):

NEW QUESTION # 38
A procurement professional is tasked with optimizing logistics processes for an organization where extended transportation pipelines are causing concerns about product obsolescence and increased inventory holding costs. What strategy might the procurement professional consider?

A. Purchasing inventory from high-wage economies
B. Increasing transportation costs to expedite product delivery
C. Reducing the transportation pipeline length by sourcing products locally
D. Expanding the organization's capital equipment capacity

Answer: C

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

NEW QUESTION # 39
What are potential causes of transportation and/or pipeline breakdowns? (Select all that apply)

A. Law & disputes
B. Corruption
C. Natural disasters
D. Weather events
E. Currency fluctuations

Answer: B,C,D,E

Explanation:
Natural disasters and weather events disrupt transportation and facilities.
Corruption can lead to inefficiencies and breakdowns in transportation networks.
Currency fluctuations may cause financial disruptions affecting logistics operations.
Law & disputes are not listed as key factors affecting transportation breakdowns. [P-72]

NEW QUESTION # 40
The following five companies are dealing with the challenge of managing a product portfolio, catering to diverse customer segments across international territories. Each company manager is tasked with prioritizing specific focus areas and allocating resources to overcome challenges.
Company A: A grocery store chain frequently offers special promotions and discounts, significantly affecting ordering patterns. These volatile prices make it challenging to maintain a consistent revenue stream.
Company B: A growing e-commerce business experiencing increased shipping costs due to the rapid expansion of product offerings and customer base. To maintain profitability, they need to reduce costs.
Company C: A custom-made furniture manufacturer facing order processing delays, leading to longer lead times and increased customer complaints.
Company D: A manufacturer of high-demand electronic gadgets experiencing demand exceeding supply, requiring order rationing. Customers are frustrated due to errors in the rationing system and have attempted to game the system.
Company E: A global electronics manufacturer struggling to manage its complex supply chain across multiple regions. The company needs to leverage technology to improve efficiency and reduce operational costs.
Each company must also take recommended actions to address its primary challenge.
Q: For Company A, what recommended action should the company manager take?
Answer Options:

A. Implementing order batching
B. Implementing automation and machine learning
C. Improving order accuracy
D. Handling price fluctuations
E. Leveraging economies of scale

Answer: D

Explanation:
To address price volatility, Company A should focus on handling price fluctuations through better pricing strategies and demand forecasting. [P 166-169]

NEW QUESTION # 41
The following five companies are dealing with the challenge of managing a product portfolio, catering to diverse customer segments across international territories. Each company manager is tasked with prioritizing specific focus areas and allocating resources to overcome challenges.
Company A: A grocery store chain frequently offers special promotions and discounts, significantly affecting ordering patterns. These volatile prices make it challenging to maintain a consistent revenue stream.
Company B: A growing e-commerce business experiencing increased shipping costs due to the rapid expansion of product offerings and customer base. To maintain profitability, they need to reduce costs.
Company C: A custom-made furniture manufacturer facing order processing delays, leading to longer lead times and increased customer complaints.
Company D: A manufacturer of high-demand electronic gadgets experiencing demand exceeding supply, requiring order rationing. Customers are frustrated due to errors in the rationing system and have attempted to game the system.
Company E: A global electronics manufacturer struggling to manage its complex supply chain across multiple regions. The company needs to leverage technology to improve efficiency and reduce operational costs.
Q: For Company E, what should be the focus area analyzed by the company manager?
Answer Options:

A. Pricing practices
B. Customer satisfaction
C. Supply Chain technology
D. Order processing
E. Cost efficiency

Answer: C

Explanation:
Company E is struggling with a complex global supply chain. The best approach is to invest in supply chain technology to enhance efficiency. [P 166-169]

NEW QUESTION # 42
What strategic questions must global firms consider when managing virtually centralized teams?

A. How virtual teams fulfill tasks physically
B. How to improve face-to-face communication
C. How to manage information complexity
D. What types of tasks are best fulfilled by virtual teams

Answer: D

Explanation:
When managing virtually centralized teams, firms must determine which tasks are best suited for virtual collaboration to optimize efficiency. [P-102]

NEW QUESTION # 43
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