When using a Total Cost of Ownership (TCO) model to determine the true cost of holding inventory, which of the following costs would not be included in the calculation?
Answer(s): C
Comprehensive and Detailed Explanation From Exact Extract:TCO for inventory focuses on all direct and indirect costs incurred in holding stock -- such as pilferage (theft), obsolescence (unsellable items), and insurance (risk protection for loss/damage). Staff uniforms, however, are general overheads unrelated to inventory holding cost.
CIPS L5M10 Study Guide, "Costs of holding inventory," p. 27
What is the name of the emerging tool that can help companies improve supply chain visibility across macro-environmental factors such as political, environmental, and social changes?
Answer(s): D
Comprehensive and Detailed Explanation From Exact Extract:Supply Chain Event Management (SCEM) systems monitor and compare planned versus actual supply chain events. They issue alerts when disruptions or macro-environmental changes (e.g., political instability or weather) cause deviations from plan, enabling rapid corrective actions.
CIPS L5M10 Study Guide, SCEM section, p. 40
Which of the following sentences is true about NVOCC (Non-Vessel Operating Common Carrier) operators?
Comprehensive and Detailed Explanation From Exact Extract:An NVOCC functions as a legal carrier issuing Bills of Lading but does not own or operate vessels. They arrange shipping with vessel operators on behalf of clients. Their role focuses on consolidation, documentation, and legal responsibility for the cargo.
CIPS L5M10 Study Guide, Maritime logistics and NVOCC, p. 43
A detailed list of a ship's cargo, issued as a receipt by the master of the ship to the person consigning the goods, is known as which document?
Answer(s): A
Comprehensive and Detailed Explanation From Exact Extract:A Bill of Lading (B/L) serves as both a receipt for shipped goods and a document of title. It confirms carriage terms between shipper and carrier and is critical in international freight documentation.
CIPS L5M10 Study Guide, "Key transport documents," p. 44
Miranda is updating the Business Strategy for her company. It is important she aligns the Business Strategy with which of the following?
Comprehensive and Detailed Explanation From Exact Extract:Corporate Strategy sets the organisation's overarching mission and goals. Business Strategy derives from it, outlining how those goals will be achieved. Functional strategies (like procurement or logistics) then support the Business Strategy. Therefore, Business Strategy alignment must be upward with Corporate Strategy.
CIPS L5M10 Study Guide, Strategic alignment hierarchy, p. 52
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