DISTRIBUTION OBJECTIVE ASSESSMENT EXAM
QUESTIONS
SECTION 1: LOGISTICS & SUPPLY CHAIN FUNDAMENTALS Questions 1–75
1. What is the definition of logistics?
A. The process of manufacturing finished goods
B. The process of planning, implementing, and controlling the efficient flow of
goods, services, and information from point of origin to point of consumption
C. The management of customer relationships only
D. The financial accounting of inventory costs
Correct Answer: B – Logistics is defined as the process of planning,
implementing, and controlling the efficient, effective flow and storage of
goods, services, and related information from point of origin to point of
consumption.
2. Which statement accurately describes the relationship between logistics
and supply chain management?
A. Logistics and supply chain management are interchangeable terms
B. Supply chain management is a subset of logistics
,C. Logistics is a subset of supply chain management, which covers additional
activities beyond logistics
D. Logistics and supply chain management are independent from each other
Correct Answer: C – Logistics is a subset of supply chain management. Supply
chain management encompasses upstream activities related to suppliers and
downstream activities related to customers beyond logistics alone.
3. What are the "Five Rights" of logistics?
A. Right cost, right carrier, right route, right schedule, right documentation
B. Right product, right place, right time, right quantity, right cost
C. Right supplier, right customer, right warehouse, right mode, right price
D. Right quality, right packaging, right handling, right storage, right delivery
Correct Answer: B – The Five Rights are: right product, right place, right time,
right quantity, and right cost.
4. Which concept integrates transportation, storage, packaging, and other
logistics elements into a single optimized system to avoid suboptimization?
A. Total Quality Management (TQM)
B. Total Logistics Concept (TLC)
C. Integrated Supply Chain Management (ISCM)
D. Lean Logistics Framework (LLF)
,Correct Answer: B – The Total Logistics Concept (TLC) integrates logistics
elements into a single optimized system.
5. Transportation represents approximately what percentage of total logistics
costs?
A. 25%
B. 35%
C. 48%
D. 65%
Correct Answer: C – Transportation costs typically represent the largest
component of total logistics costs, accounting for approximately 48% of
logistics expenditures.
6. The three levels of logistics planning are:
A. Primary, secondary, and tertiary
B. Strategic, tactical, and operational
C. Longterm, mediumterm, and shortterm
D. Planning, execution, and evaluation
, Correct Answer: B – The three levels of logistics planning are strategic
(longterm, network design), tactical (midterm, resource allocation), and
operational (shortterm, daytoday execution).
7. What is the difference between planning and control in logistics?
A. Planning is reactive; control is proactive
B. Planning = doing the right thing (design); Control = doing things right
(execution)
C. Planning focuses on cost; control focuses on service
D. Planning is done by managers; control is done by workers
Correct Answer: B – Planning focuses on design and doing the right thing,
while control focuses on execution and doing things right.
8. Which of the following is NOT a primary function of logistics?
A. Transportation
B. Warehousing
C. Marketing
D. Inventory management
Correct Answer: C – Marketing is not a primary logistics function. The primary
functions include transportation, warehousing, inventory management, order
processing, and packaging.