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CIPS L6M10 Exam Questions
Global Logistics Strategy (Page 3 )

Updated On: 21-Feb-2026
Page 3 of 41
PDF with 197 Questions

Which key performance objective focuses on maintaining products at their manufactured specification and ensuring the accuracy of inventory information?

  1. Quality
  2. Speed
  3. Dependability
  4. Flexibility

Answer(s): A

Explanation:

The key performance objective Quality ensures that inventory is maintained at its manufactured specification and that all inventory-related information remains accurate, emphasizing product integrity and data accuracy in inventory management. [P-6]



What is a key factor that organizations need to consider when making decisions about the location of distribution centers (DC) as part of their global logistics strategy?

  1. The size of the distribution centers
  2. The impact on inventory flow and efficiency
  3. The choice of transportation modes
  4. The availability of skilled labor in the region

Answer(s): B

Explanation:

Decisions about distribution center locations must consider how they facilitate storage and transportation, affecting inventory flow and efficiency within the logistics operation. [P-6]



What does the management of global logistics involve beyond examining physical assets and locations in the supply chain operational system?

  1. Developing competitive relationships with suppliers
  2. Managing the information flow throughout the supply chain network
  3. Coordinating production facilities across different regions
  4. Reducing supply chain complexity

Answer(s): B

Explanation:

Global logistics management involves more than just physical assets--it includes managing information flow and coordinating activities across the supply chain to optimize efficiency and decision-making. [P-33]



A large organization wants to reduce its logistics costs and increase productivity by implementing economies of scale and batching in its operations.
What is the potential negative consequence they should be cautious about?

  1. Decreased cost efficiency
  2. Bullwhip effect
  3. Increased information flow
  4. Reduced automation

Answer(s): B

Explanation:

The bullwhip effect is a potential risk when implementing economies of scale and batching. It occurs when demand variability is amplified across the supply chain, leading to inefficiencies and information distortions. [P-18]



What are potential causes of transportation and/or pipeline breakdowns? (Select all that apply)

  1. Currency fluctuations
  2. Law & disputes
  3. Corruption
  4. Natural disasters
  5. Weather events

Answer(s): A,C,D,E

Explanation:

Natural disasters and weather events disrupt transportation and facilities. Corruption can lead to inefficiencies and breakdowns in transportation networks. Currency fluctuations may cause financial disruptions affecting logistics operations. Law & disputes are not listed as key factors affecting transportation breakdowns. [P-72]






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