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CIPS L6M10 Exam Questions
Global Logistics Strategy (Page 4 )

Updated On: 21-Feb-2026
Page 4 of 41
PDF with 197 Questions

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]



What is the purpose of the "order picking" stage in storage and handling practices?

  1. To physically unload incoming transportation
  2. To assemble and prepare inventory for dispatch according to orders
  3. To move goods received inventory to identifiable locations
  4. To manage the quality control of incoming inventory

Answer(s): B

Explanation:

The order picking stage involves retrieving and preparing inventory for dispatch based on order requirements, ensuring efficient fulfillment. [P-9]



What is a key benefit of increasing supply chain visibility?

  1. Receiving real-time information about supply chain performance
  2. Minimizing the role of digital technology
  3. Reducing the need for dual sourcing
  4. Eliminating the need for strategic planning with supply partners

Answer(s): A

Explanation:

Supply chain visibility allows real-time tracking of supply chain performance, enhancing decision- making and responsiveness during disruptions. [P-67]



What is a key factor considered when choosing between centralized and regionalized inventory handling?

  1. Transportation cost savings
  2. Customer service measurements
  3. Distribution efficiency
  4. Total cost concept

Answer(s): D

Explanation:

The total cost concept considers the overall impact on inventory management costs, prioritizing end- to-end cost reduction over isolated savings. [P-7]






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