L6M10 Exam Practice | L6M10 Reliable Test Tips

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CIPS Global Logistics Strategy Sample Questions (Q121-Q126):

NEW QUESTION # 121
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?

A. Documentary letter of credit (LC)
B. Certificate of origin
C. Choice of currency
D. Credit terms

Answer: A

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 # 122
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.
Each company must also take recommended actions to address its primary challenge.
Q: For Company A, what recommended action should the company manager take?
Answer Options:

A. Handling price fluctuations
B. Implementing order batching
C. Improving order accuracy
D. Implementing automation and machine learning
E. Leveraging economies of scale

Answer: A

Explanation:
To address price volatility, Company A should focus on handling price fluctuations through better pricing strategies and demand forecasting. [P 166-169]

NEW QUESTION # 123
Which of the following is considered an external factor influencing an organization's reverse logistics activities?

A. Technological advancements
B. Internal audit procedures
C. Employee satisfaction
D. Government regulations

Answer: D

Explanation:
External factors influencing reverse logistics include government regulations, which are external forces like government regulators. [P-173]

NEW QUESTION # 124
What does waste reduction refer to in manufacturing and consumption processes?

A. Reducing the production of goods.
B. Reducing the use of resources.
C. Reducing the need for reverse logistics.
D. Reducing the number of reworks and scrapped items.

Answer: D

Explanation:
Waste reduction in manufacturing and consumption processes refers to actions taken to decrease the amount of waste produced, such as reducing the number of reworks and scrapped items. [P-143]

NEW QUESTION # 125
What historical communication method did international shipping companies use to communicate with their ships?

A. Fax
B. Electronic data interchange (EDI)
C. Telegram
D. Internet

Answer: C

Explanation:
Historically, telegram was used for ship-to-shore communication before modern digital solutions were developed. [P-98]

NEW QUESTION # 126
......

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CIPS Global Logistics Strategy Sample Questions (Q121-Q126):

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