BANK| ASCM (CERTIFIED IN LOGISTICS,
TRANSPORTATION AND DISTRIBUTION) FINAL EXAM
PREP WITH 500 REAL EXAM QUESTIONS AND
CORRECT VERIFIED ANSWERS/ ALREADY GRADED
A+| (BRAND NEW!!)
Q1. Which logistics strategy is most aligned with a company
pursuing a cost leadership business model?
A. Zone skipping
B. Postponement
C. Cross-docking
D. Drop-shipping
Correct Answer: C
Rationale: Cross-docking reduces inventory holding and
warehousing costs, directly supporting cost leadership. Zone
skipping (A) reduces transport cost but less directly;
postponement (B) adds complexity; drop-shipping (D) can
increase shipping costs.
Q2. A logistics network with few, centralized DCs is best suited
for:
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,A. High service level with fast delivery
B. Low-value, high-density products
C. High-value, low-volume products
D. Perishable goods with short shelf life
Correct Answer: C
Rationale: Centralized DCs reduce inventory costs. High-value,
low-volume items justify centralization. Perishables (D) need
decentralization; low-value/dense (B) benefit from regional DCs.
Q3. Total Landed Cost (TLC) analysis is most critical when:
A. Sourcing locally only
B. Comparing international suppliers
C. Reducing warehouse labor
D. Choosing a TMS
Correct Answer: B
Rationale: TLC includes freight, tariffs, inventory carrying cost,
etc. Essential for global sourcing comparisons.
Q4. A company shifts from 10 regional DCs to 3 national DCs.
Likely outcome:
A. Lower outbound freight cost, higher inventory cost
B. Higher outbound freight cost, lower inventory cost
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,C. Lower outbound and lower inventory cost
D. Higher both outbound and inventory cost
Correct Answer: B
Rationale: Fewer DCs increase distance to customers (higher
outbound freight) but reduce safety stock (lower inventory cost).
Q5. Postponement strategy in logistics means:
A. Delaying order shipment until full truckload
B. Delaying final product configuration until customer order
C. Delaying supplier payments
D. Delaying warehouse receiving
Correct Answer: B
Rationale: Postponement holds product at semi-finished stage;
final customization happens after order receipt.
Q6. In network design, the gravity model is used to:
A. Optimize warehouse staffing levels
B. Find optimal facility location minimizing weighted distances
C. Calculate EOQ
D. Forecast seasonal demand
Correct Answer: B
Rationale: Gravity model balances customer locations and
demand weights to minimize transport costs.
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, Q7. A zone skipping strategy reduces:
A. Inventory carrying cost
B. Line-haul transportation cost
C. Last-mile delivery cost
D. Warehousing labor cost
Correct Answer: C
Rationale: Zone skipping consolidates shipments to a regional
hub, bypassing local sortation, reducing last-mile cost.
Q8. Which metric indicates effective logistics network design?
A. High inventory turns
B. Low perfect order rate
C. High cash-to-cash cycle time
D. Low on-time delivery
Correct Answer: A
Rationale: High inventory turns suggest efficient network
balancing service and cost.
Q9. A company sources from Asia and sells in Europe. Which
incoterm minimizes buyer’s risk and logistics control?
A. EXW
B. FOB
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