CIPS L6M10 Exam Practice Test Instant Access

Question 1

What is a key benefit of increasing supply chain visibility?

AReceiving real-time information about supply chain performance

BMinimizing the role of digital technology

CReducing the need for dual sourcing

DEliminating the need for strategic planning with supply partners

Answer : A

Supply chain visibility allows real-time tracking of supply chain performance, enhancing decision-making and responsiveness during disruptions. [P-67]

Question 2

ABC Electronics is a company that manufactures and sells electronic devices. They have recently noticed an increasing demand from their customers for more sustainable and environmentally friendly products. Many customers are asking about the company's efforts to reduce electronic waste.

What external stakeholder factor is influencing ABC Electronics' strategy regarding reverse logistics?

AGovernment regulations

BSupplier preferences

CInternal management decisions

DEmployee satisfaction

Answer : A

Government bodies and regulators set laws that influence organizations' reverse logistics activities. [P-175]

Question 3

What are the four categories in which reverse logistics systems can be classified, according to De Brito and Dekker?

Product recovery systems, reverse logistics systems

Distribution channels, financial systems

Product return networks, enterprise returns management systems

Resource management systems, customer service networks

A1 and 2

B2 and 4

C3 and 4

D1 and 3

Answer : D

Reverse logistics systems can be classified into four categories: product recovery systems, reverse logistics systems, product return networks, and enterprise returns management systems. [P-140]

Question 4

The quarterly Global Supply Chain Risk Report measures strategic logistical risks across industry sectors using four key risk metrics. Which metric examines the impact of the exchange rate when transactions occur between the buying organization and supply partners who use different currencies?

AGlobal sourcing risk

BSupplier criticality

CSupplier financial risk

DForeign exchange risk

Answer : D

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

Question 5

Sarah, an international business consultant, is advising a company on its international arbitration strategy. The company is concerned about the confidentiality of arbitration proceedings. In which countries would Sarah's advice about the confidentiality of arbitration proceedings likely be different?

ACanada, Germany, and Japan

BUSA, Sweden, and Australia

CItaly, Spain, and Brazil

DEngland, France, and New Zealand

Answer : D

In England, France, and New Zealand, arbitration proceedings are confidential by default, subject to exceptions, making confidentiality rules different from other jurisdictions. [P-119]

Question 6

What is the purpose of the "order picking" stage in storage and handling practices?

ATo physically unload incoming transportation

BTo assemble and prepare inventory for dispatch according to orders

CTo move goods received inventory to identifiable locations

DTo manage the quality control of incoming inventory

Answer : B

The order picking stage involves retrieving and preparing inventory for dispatch based on order requirements, ensuring efficient fulfillment. [P-9]

Question 7

A multinational company is expanding its operations globally and considering the benefits and challenges of sourcing, outsourcing, and offshoring. Which challenge is likely to be hard to overcome due to trade across borders and geographic, time, and language differences?

ACompliance issues

BLogistics and production scheduling

CQuality expectations

DLead time factors

Answer : D

Global expansion introduces challenges such as geographic, time, and language differences that significantly impact lead times. Managing long distances and coordinating activities across different time zones and languages make lead time factors one of the most difficult challenges to overcome. [P-63]

CIPS Global Logistics Strategy L6M10 Exam Practice Test