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CIPS Global Logistics Strategy Sample Questions (Q20-Q25):

NEW QUESTION # 20
What actions should a procurement professional take to protect the supply chain from transportation and/or pipeline breakdowns? (Select all that apply)

  • A. Increasing inventory
  • B. Ignore the economic impact
  • C. Collaborative planning with supply partners
  • D. Introduction of EDI
  • E. Information sharing with supply partners

Answer: C,D,E

Explanation:
EDI (Electronic Data Interchange) improves communication and reduces delays.
Collaborative planning ensures proactive risk management.
Information sharing enhances visibility and coordination across the supply chain.
Increasing inventory and ignoring economic impact are not recommended solutions. [P-73]


NEW QUESTION # 21
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 B, what should be the focus area analyzed by the company manager?
Answer Options:

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

Answer: A

Explanation:
Company B needs to reduce shipping costs and maintain profitability, making cost efficiency the primary focus area. [P 166-169]


NEW QUESTION # 22
Who are primary participants in return transactions?

  • A. 3 and 4
  • B. 2 and 3
  • C. 1 and 4
  • D. 1 and 2

Answer: C

Explanation:
Customers and suppliers (organization) are key participants in returns. [P-181]


NEW QUESTION # 23
In which type of global supply chain coordination and governance do suppliers take full responsibility for process technology and make capital outlays for components on behalf of customers?

  • A. Modular value chains
  • B. Captive value chains
  • C. Relational value chains
  • D. Markets

Answer: A

Explanation:
In modular value chains, suppliers provide turnkey services, making capital outlays for technology and materials while manufacturing products to customer specifications. [P-115]


NEW QUESTION # 24
In the context of logistics flows, what does the term "bi-directional" refer to?

  • A. Information flows only from upstream to downstream.
  • B. Flows of materials and financials are interconnected.
  • C. Goods flow from the point of origin to the point of consumption.
  • D. Flows that can occur in both directions, from point of origin to point of consumption and vice versa.

Answer: D

Explanation:
"Bi-directional" in the context of logistics flows refers to the fact that the flows of goods, information, and financials can occur in both directions: from the point of origin to the point of consumption (forward flow), and from the point of consumption to the point of origin (reverse flow). [P-139]


NEW QUESTION # 25
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