Question 1

How does outsourcing logistics activities to a 3PL contribute to cost reduction for the client organization?

Options :

A : By increasing overhead costs

B : By centralizing order processing and efficient asset use

C : By introducing complexities in relationship management

D : By decentralizing decision-making processes

Answer: B

Question 2

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

Options :

A : Customer service measurements

B : Total cost concept

C : Distribution efficiency

D : Transportation cost savings

Answer: B

Question 3

A procurement professional is tasked with optimizing the global pipeline for a multinational organization. They want to eliminate non-value-adding processes and improve efficiency. What technique should they consider using?

Options :

A : Implementing cloud-based technologies

B : Conducting physical visits to suppliers

C : Value stream mapping

D : Increasing the number of supply partners

Answer: C

Question 4

What is the significance of end-to-end integration in capturing efficiencies from new technologies?

Options :

A : It allows companies to focus solely on domestic markets.

B : It helps companies realize the full potential of new technologies in production and logistics

C : It increases production costs.

D : It reduces the need for global logistics.

Answer: B

Question 5

What is the practice of following precedence in national legal systems called in Common Law?

Options :

A : Rule of law

B : Stare decisis

C : Jurisprudence constant

D : Judicial creativity

Answer: B

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