Logistics and Supply Chain Management

The candidates interested in Logistics and Supply Chain Management needs to have numeric ability, interpreting skills, sound knowledge of share market, capital investment, growth ratios, etc. Candidates are also provided with case studies to measure their knowledge level of financial concepts.

Q.1 Which activities are done by the organization by employing outsourced company for reverse logistics

Report This Question

Q.2 A company by reverse logistics usually performs refurbishing, remanufacturing or recapturing

Report This Question

Q.3 What is meant by FTL in logistics?

FTL expands to Full truck load and it refers presence of enough products to be transported, which will fill a truck.

Report This Question

Q.4 Illustrae ABC analysis as applicable for inventory management?

ABC analysis is a tool to organize large inventory types into 3 groups - A,B or C depending upon their importance so as to better focus the crucial inventory for storage and transportation.

Report This Question

Q.5 What is the theft in small amounts of goods, merchandise, or inventory called?

Pilferage is the theft of part of the contents of a package. It may also include theft of the contents but leaving the package, perhaps resealed with bogus contents. Small packages can be pilfered from a larger package such as a shipping container.

Report This Question

Q.6 How to apply Pareto analysis in Logistics and SCM?

The Pareto analysis is based on Pareto principle which states that 80 percent of the inventory types have only 20 percent of value and the remaining 20% of inventory should be focused as it has 80% of value or relevance. Hence, the logistics and SCM manager should accordingly prioritize the inventory to be focused on.

Report This Question

Q.7 What is the objective of a supply chain?

A supply chain is actually a complex and dynamic supply and demand network. A supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. The objective of a supply chain is to improve the efficiency and responsiveness across the whole supply chain and also deliver improved value to the customers

Report This Question

Q.8 What is Bill of Lading?

Bill of Lading or BOL is a document which acts as an evidence of contract amongst the shipper and carrier detailing the terms and conditions for the contract of carriage. It lists the destination, billing details, how to handle the cargo. It acts as a receipt of goods or document of title of goods.

Report This Question

Q.9 How economies of scale in transportation achieved?

Economies of scale in transportation is achieved if the mode of shipment is FTL. FTL or “full truck load” means that the load will fill up the entire truck. Shippers that accommodate full truck loads cater to those customers who typically ship in bulk. The large amount of goods being shipped offsets the cost of a larger truck.

Report This Question

Q.10 How to calculate Ad Valorem Duty if applicable on the cargo?

Ad Valorem duty is calculated as a % of the shipment value.

Report This Question

Q.11 What is the major benefit of private warehousing over public?

Private warehousing offers greater degree of control over the process and warehousing of the products as compared to public warehouses, as public warehouses are to be shared with others.

Report This Question

Q.12 Explain Advanced Planning and Scheduling (APS)

Advanced Planning and Scheduling or APS refers to techniques or computer program for analysis and planning of logistics activities for different time periods, as: short, intermediate, and long-term. APS optimizes the activities and it includes: demand planning, production planning, production scheduling, distribution planning, and transportation planning.

Report This Question

Q.13 If a customer visiting a departmental store cannot find his desired soap manufactured by Hindustan Unilever Ltd (HUL) in the store, which of the following chain partner will he hold responsible for the non-availability of the soap?

The departmental store is held responsible for the non-availability of the soap.

Report This Question

Q.14 What do you understand by Advanced Shipment Notice?

Advanced Shipment Notice or ASN is an EDI term which is transaction set as per the ANSI 856 standard about notification being sent to parties by the supplier of shipment being outbound in the supply chain. It is sent to customer or consignor and has expected time of arrival.

Report This Question

Q.15 What is Air Waybill?

Air Waybill or AWB is a bill of lading which acts as a receipt for the shipper of acceptance of goods by the carrier.

Report This Question

Q.16 What is AS/RS?

AS/RS expands to Automated Storage/Retrieval System and it is automated system employing unmanned vehicles for loading and unloading products to/from the racks with less or no human intervention. It enables high-density inventory storage.

Report This Question

Q.17 What is Break-Bulk?

Break-Bulk refers to detaching consolidated bulk load into smaller shipments for sending it to the final consignee.

Report This Question

Q.18 What do you understand by Break Bulk Cargo?

Break Bulk Cargo refers to non-containerized cargo but it is shipped as a unit or package. It can include: palletized cargo or boxed cargo

Report This Question

Q.19 What are the Seven Rights of Fulfilment in a supply chain?

The Seven Rights of Fulfilment in a supply chain are: Right Product, To the Right Customer, At the Right Time, At the Right Place, In the Right Condition, In the Right Quantity and At the Right Cost.

Report This Question

Q.20 What do you understand by Build to Order?

Build to Order refers to inventory management technique, which involves producing the goods only when, receiving the order from the customer.

Report This Question

Q.21 Explain Bulk Cargo in logistics

Bulk Cargo refers to unpacked dry cargo and usually includes grain, iron ore or coal.

Report This Question

Q.22 What is meant by Bullwhip Effect in supply chain?

The Bullwhip Effect in supply chain refers to the extreme impact of small changes in downstream of the supply chain on the upstream of the supply chain. It can result in excess inventory, transportation delays and can be addressed by synchronizing the supply chain.

Report This Question

Q.23 Illustrate the Center-of-Gravity approach in supply chain

Center-of-Gravity approach in supply chain refers to SCM planning technique which emphasizes distribution centers to be located such that it minimizes transportation costs amongst the manufacturing plants, the distribution centers, and the markets.

Report This Question

Q.24 What is Certificate of Origin in logistics?

Certificate of Origin is an affidavit proving the origin of imported goods and is primarily used for customs or forex.

Report This Question

Q.25 What do you understand by COTD in logistics?

COTD expands to Complete and On-Time Delivery and is a measure of quality of delivery and customer service. It focuses on delivery of all items in an order to be on-time and complete.

Report This Question

Q.26 Describe CFS in logistics

CFS expands to Container Freight Station and refers to a designated location from where cargo is received and packed into containers by the carrier. Similarly at destination it is the location where cargo is unpacked from containers.

Report This Question

Q.27 What is SCOR model?

SCOR expands to the Supply Chain Operations Reference model. It is used to analyze the supply chain of a company and has supply structure with supply chain metrics and scorecards for performance evaluation and improvements. It has 5 core processes: Plan, Source, Make, Deliver and return.

Report This Question

Q.28 What do you understand by Contract of Affreightment in logistics?

The Contract of Affreightment is amongst cargo shipper and carrier and it is for the transportation of multiple cargoes over a period of time, though individual contracts are negotiated.

Report This Question

Q.29 Explain C & F

C & F expands to Cost and Freight and refers to price being quoted by seller with the cost of transportation to a specific point and buyer has to pay for any loss or insurance from thereon.

Report This Question

Q.30 What is Crossdock in logistics?

Crossdock is the location in warehouse where goods are moved amongst different trucks so as to consolidate the load and avoid intermediate storage.

Report This Question

Q.31 What is the upstream supply chain?

The upstream supply chain refers to procurement of material from suppliers.

Report This Question

Q.32 What refers to Cross Docking in logistics?

Cross Docking in logistics refers to a distribution system wherein, the goods received at distribution center are not stored but are sent to retail stores by packing/unpacking. It needs synchronized all inbound and outbound shipment movements.

Report This Question

Q.33 What do you understand by CAF in logistics?

CAF expands to Currency Adjustment Factor and is a surcharge applicable on ocean freight to address any changes in foreign currency exchange prices. It is charged by the carrier.

Report This Question

Q.34 What is DOA in supply chain?

DOA in supply chain is Dead on Arrival and refers to product which is non-functional or product being defective, when delivered.

Report This Question

Q.35 Describe the Drum-Buffer-Rope (DBR) in supply chain

Drum-Buffer-Rope is a concept in theory of constraints for increasing throughput of the system by adjusting buffers by a rope and controlling speed by a drum. The Drum is production rate constraint of the system and the Buffer is safety for uncertainty so as to maximize throughput by the system. The rope ensures work gets released into the system at the right time.

Report This Question

Q.36 What is HazMat in logistics?

HazMat expands to Hazardous Materials and is item whose transportation is a public safety risk. Their transportation and storage are regulated under safety regulations.

Report This Question

Q.37 What do you understand by TEU in logistics?

TEU expands to Twenty-Foot Equivalent Unit and refers to a measurement standard utilized for the cargo. It is in terms of 20-foot shipping containers and is widely used by ships, ports, and trade data.

Report This Question

Q.38 What is NVOCC?

NVOCC expands to Non-Vessel-Operating Common Carrier and refers to foreign freight forwarder who do not own or operate own vessels but issue their own BOL/AWB for point-to-point goods movement.

Report This Question

Q.39 What is DPP in supply chain?

DPP expands to Direct product profitability and refers to allocation of all costs/allowances to a specific product instead of product range to highlight any inefficiency

Report This Question

Q.40 Which forecasting technique of material planning is suitable if forecasting data with no trend or seasonal pattern?

Exponential Smoothing is the suitable forecasting technique which uses the statistical smoothing process.

Report This Question

Q.41 What is Lead Time?

Lead time refers to allowed time for an activity execution from start to finish.

Report This Question

Q.42 What is the size of a TEU?

The size of a TEU is 20ft × 8ft container

Report This Question

Q.43 What is meant by XYZ analysis?

The XYZ analysis is used for stock management and is based on consumption of a good or item. X designated items have constant consumption, Y have stronger fluctuations due to seasonal reasons and Z have completely irregular consumption

Report This Question

Q.44 How to reduce lead time?

The lead time can be reduced by holding the right stock; reducing cycle and supplier lead times and incorporate accurate forecasting, planning and scheduling.

Report This Question

Q.45 What is certificate of Value?

A Certificate of Value details costs of the labour and packing, commissions, freight charges and any overseas insurance costs. It is used for clearing of goods in destination country.

Report This Question

Q.46 What is includes in a Cargo Manifest?

A cargo manifest includes: seller, buyer, shipper, invoice number, date of shipment, mode of transport, carrier, and itemizes quantity, description, the type of package, the quantity of packages, total net and gross weight, package marks, and dimensions

Report This Question

Q.47 How to manage a difficult customer?

Managing a difficult customer involves connecting with them to addressing their issue, listening to them, have clear communication without any negative emotions or bias.

Report This Question

Q.48 What is 5S methodology in SCM?

5S is a lean technique to create and maintain a safe, clean and efficient workplace by eliminating wastes in a supply chain.

Report This Question

Q.49 How do you prioritize tasks in a supply chain?

Prioritization of tasks is dependent upon factors like: relevance, cost, resource availability, time to completion, etc. We can also apply prioritization techniques Gantt chart, CPM/PERT charts, etc

Report This Question

Q.50 How will you address delays or under performance in the supply chain?

Under performance in the supply chain can be addressed by analyzing the reasons for under performance, understanding and listening to all stakeholders for problem being faced, creating an encouraging and motivated environment to achieve the desired performance and continuously monitoring to address any event or factor of underperformance.

Report This Question

Q.51 What is aggregate shipment?

It refers to grouping together of multiple shipments from different shippers to a single consignee and to be treated as a single consignment.

Report This Question