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Free L6M10 Exam Braindumps (page: 4)

Page 4 of 51
PDF with 197 Questions

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]



A multinational corporation is considering expanding its operations to low-wage economies in developing countries to reduce labor costs and gain access to proprietary knowledge.
Which of the following best describes this strategy?

  1. Pursuit of cost efficiency in the supply chain
  2. Global consolidation of transportation
  3. Centralized distribution centers
  4. Environmental and safety standards compliance

Answer(s): A

Explanation:

Expanding operations to low-wage economies aligns with a cost efficiency strategy, aiming to reduce labor costs and maximize purchasing leverage in the global supply chain. [P-14]



A global organization is considering implementing a tiered supply chain network.
What would be the primary benefit of this approach?

  1. To centralize production facilities in one location
  2. To eliminate competition among suppliers
  3. To increase demand uncertainty
  4. To reduce the complexity of the supply chain

Answer(s): D

Explanation:

A tiered supply chain network reduces complexity by structuring supplier relationships while maintaining consistent information flows and coordination. [P-34]






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