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CIPS Global Logistics Strategy Sample Questions (Q137-Q142):
NEW QUESTION # 137
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:
- A. Cost efficiency
- B. Order processing
- C. Pricing practices
- D. Supply Chain technology
- E. Customer satisfaction
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 # 138
How do 3PLs reduce costs for clients?
- A. Complex relationships
- B. Decentralizing decisions
- C. Centralizing order processing and asset use
- D. Increasing overhead
Answer: C
Explanation:
3PLs consolidate operations to achieve economies of scale. [P-186]
NEW QUESTION # 139
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 D, what recommended action should the company manager take?
Answer Options:
- A. Implementing automation and machine learning
- B. Handling price fluctuations
- C. Improving order accuracy
- D. Leveraging economies of scale
- E. Implementing order batching
Answer: C
Explanation:
To address errors in the rationing system, Company D should focus on improving order accuracy, ensuring fair distribution of limited supply. [P 166-169]
NEW QUESTION # 140
What are the four categories in which reverse logistics systems can be classified, according to De Brito and Dekker?
- A. 2 and 4
- B. 3 and 4
- C. 1 and 2
- D. 1 and 3
Answer: D
Explanation:
The categories are product recovery systems, reverse logistics systems, product return networks, and enterprise returns management systems. [P-140]
NEW QUESTION # 141
Mr. Mark works as a customer service manager for an e-commerce company called "ShopSmart." ShopSmart sells a wide range of products online, and Mark's team is responsible for addressing customer inquiries and issues. Below are five customer cases that need to be resolved. For each case, find the solution for the issue and select preventive measures.
Customer 1: Jane ordered a birthday gift for her daughter, but it arrived two days late, missing the special day. She had meticulously planned a surprise celebration, and the late delivery disrupted her plans. As a result, her daughter was left disappointed, and Jane is seeking not only a solution to the delayed delivery but also a way to make it up to her daughter.
Customer 2: Jack received a defective electronic gadget he ordered, and it's not functioning correctly. Jack wants to know how ShopSmart can rectify this situation and ensure that he receives a fully functional replacement or a refund.
Customer 3: Sarah received her order, but some items from her purchase were missing. Sarah is seeking a solution to get the missing items as soon as possible to avoid disappointment and inconvenience.
Customer 4: Mike noticed a billing discrepancy on his credit card statement related to a recent purchase. He's a loyal customer and has never encountered such an issue before. Mike is concerned about the erroneous charges on his statement and is looking for a prompt resolution and clarification regarding the billing error.
Customer 5: Emily wants a refund for a dress she ordered online, but it doesn't fit as expected. The dress size was not in line with ShopSmart's sizing chart, and Emily wants to return the dress and receive a refund promptly. She's looking for a hassle-free return process and a full refund for the purchase.
Q: How can Customer 4 Mike's issue be resolved?
Answer Options:
- A. Special offer for the next purchase
- B. Refund the extra charges
- C. Ensure a simple return process
- D. Immediate shipping of the missing items
- E. Replacement or refund
Answer: B
Explanation:
An investigation should be conducted to verify the billing error, and if it is ShopSmart's mistake, the extra charges should be refunded to Mike promptly. [P 166-169]
NEW QUESTION # 142
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