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CIPS Global Logistics Strategy Sample Questions (Q113-Q118):
NEW QUESTION # 113
What is a key consideration for organizations when determining the allocation of resources for reverse logistics activities?
Answer: C
Explanation:
Customer preferences and demands for environmental responsibility drive resource allocation in reverse logistics. [P-179]
NEW QUESTION # 114
A multinational corporation decides to divest ownership of its subsidiaries, vendors, and suppliers to focus on product strategy. What term best describes this strategic shift?
Answer: B
Explanation:
Vertical disintegration occurs when corporations divest their ownership of subsidiaries and suppliers to focus on innovation. [P-107]
NEW QUESTION # 115
The following five companies are dealing with the challenge of managing a product portfolio, catering to diverse customer segments across international territories. Each company manager is tasked with prioritizing specific focus areas and allocating resources to overcome challenges.
Company A: A grocery store chain frequently offers special promotions and discounts, significantly affecting ordering patterns. These volatile prices make it challenging to maintain a consistent revenue stream.
Company B: A growing e-commerce business experiencing increased shipping costs due to the rapid expansion of product offerings and customer base. To maintain profitability, they need to reduce costs.
Company C: A custom-made furniture manufacturer facing order processing delays, leading to longer lead times and increased customer complaints.
Company D: A manufacturer of high-demand electronic gadgets experiencing demand exceeding supply, requiring order rationing. Customers are frustrated due to errors in the rationing system and have attempted to game the system.
Company E: A global electronics manufacturer struggling to manage its complex supply chain across multiple regions. The company needs to leverage technology to improve efficiency and reduce operational costs.
Q: For Company B, what should be the focus area analyzed by the company manager?
Answer Options:
Answer: A
Explanation:
Company B needs to reduce shipping costs and maintain profitability, making cost efficiency the primary focus area. [P 166-169]
NEW QUESTION # 116
Peter, an international trade negotiator, is involved in discussions about creating a new international trade agreement. The agreement will cover emerging issues related to internet technologies and e-commerce. In the context of Peter's negotiations, how should the treatment of precedent be approached in new branches of international law, such as internet technologies and e-commerce?
Answer: C
Explanation:
In new branches of international law, such as internet technologies and e-commerce, a flexible use of precedent helps adapt to evolving circumstances. [P-120]
NEW QUESTION # 117
Which document provides reassurance to all parties in an international transaction and serves as a promise issued by a bank on behalf of the importer to pay for goods and services?
Answer: D
Explanation:
A documentary letter of credit (LC) guarantees that the importer's bank will pay the exporter upon fulfilling specified conditions. [P-135]
NEW QUESTION # 118
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