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L6M10: Global Logistics Strategy
Free Practice Exam Questions (page: 9)
Updated On: 2-Jan-2026

Page 9 of 51
PDF with 197 Questions

When selecting a location for logistics and supply chain operations, what are the key factors that an organization must consider? (Select all that apply)

  1. Proximity to transportation hubs
  2. Laws and regulations related to climate change
  3. Access to energy supply
  4. Environmental impact
  5. Number of retail points

Answer(s): A,C,D

Explanation:

Proximity to transportation hubs ensures efficient distribution and logistics operations. Access to energy supply is critical for operational sustainability. Environmental impact influences sustainability and regulatory compliance. Laws and regulations related to climate change and number of retail points are not listed as key selection criteria. [P-26]



What is the primary focus of managing transportation in the context of global logistics?

  1. Minimizing transportation costs
  2. Directly contacting customers or end users during transportation
  3. Creating opportunities for improving operational systems
  4. Maximizing the value of transportation assets

Answer(s): A

Explanation:

Minimizing transportation costs is a key focus, as it is a non-value-adding activity in the supply chain, and reducing costs improves overall efficiency. [P-4]



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]



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