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CIPS L6M10 Exam Questions
Global Logistics Strategy (Page 11 )

Updated On: 21-Feb-2026
Page 8 of 41
PDF with 197 Questions

A company is experiencing an increase in customer orders for a particular product, which exceeds the forecasted demand.
What stage within the supply chain network activities is most relevant for addressing this situation?

  1. Preparation
  2. Shipment
  3. Delivery
  4. Finalisation

Answer(s): D

Explanation:

The finalisation stage of the supply chain involves making tactical adjustments to meet unexpected demand surges by increasing resources and capacity. [P-43]



What is the primary purpose of adopting a strategy of "localisation" in global logistics?

  1. Reducing transportation costs
  2. Increasing product availability in foreign markets
  3. Expanding the organization's capital equipment capacity
  4. Adapting products and processes to suit target locations

Answer(s): D

Explanation:

Localisation ensures products and processes are adapted to suit target markets based on political, social, and cultural norms. [P-11]



Which technology is increasingly being used in storage and handling systems to manage material flows and operations efficiently?

  1. Manual labor
  2. Traditional inventory management software
  3. Artificial intelligence (AI) and machine learning
  4. Paper-based systems

Answer(s): C

Explanation:

AI and machine learning enhance efficiency in storage and handling by automating decision-making and optimizing material flows. [P-9]



In the context of managing an extended transportation pipeline, what is the primary concern associated with implementing a "just in time" (JIT) inventory system?

  1. Minimizing the reliance on warehousing and storage
  2. Reducing the cost of inventory holding
  3. Increasing the risk of disruptions if material flow or labor is interrupted
  4. Reducing transportation costs through last-minute logistics planning

Answer(s): C

Explanation:

JIT inventory systems reduce storage costs but increase vulnerability to supply chain disruptions due to material flow or labor interruptions. [P-13]



What forms can governmental incentives take to encourage investment in infrastructure and export industries in a region?

  1. Grants and subsidies
  2. Tax credits and tax rebates
  3. Tax holidays and investment allowances
  4. All of the above

Answer(s): D

Explanation:

Governmental incentives can take multiple forms, including grants, subsidies, tax credits, tax rebates, tax holidays, and investment allowances to promote infrastructure and export growth. [P-53]






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