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L6M10: Global Logistics Strategy
Free Practice Exam Questions (page: 11)
Updated On: 2-Jan-2026

Page 10 of 51
PDF with 197 Questions

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]



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?

  1. Increasing transportation costs to expedite product delivery
  2. Purchasing inventory from high-wage economies
  3. Reducing the transportation pipeline length by sourcing products locally
  4. Expanding the organization's capital equipment capacity

Answer(s): C

Explanation:

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



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