Transportation, Logistics & Distribution
Comprehensive FA Review (Qns & Ans)
2025
1. Which of the following technologies is primarily used to track
the location of shipping containers in real-time?
A) Automated Guided Vehicles (AGV)
B) Radio Frequency Identification (RFID)
C) Blockchain Technology
D) Internet of Things (IoT)
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, ANS: B) Radio Frequency Identification (RFID)
Rationale: RFID technology enables the automatic tracking
of shipping containers without line-of-sight requirement,
providing real-time location information.
2. What is the primary purpose of implementing a
Transportation Management System (TMS) in logistics
operations?
A) Managing inventory levels
B) Optimizing transportation routes and costs
C) Automating warehouse operations
D) Enhancing customer relationship management
ANS: B) Optimizing transportation routes and costs
Rationale: A TMS is primarily designed to optimize
transportation routes and manage transportation costs efficiently.
3. Which distribution strategy involves shipping products
directly from the manufacturer to the consumer without going
through a traditional retail store?
A) Just-in-time (JIT) Distribution
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, B) Drop Shipping
C) Cross-docking
D) Consignment Stocking
ANS: B) Drop Shipping
Rationale: Drop shipping allows retailers to sell products
without keeping them in stock, as goods are shipped directly from
manufacturer to consumer.
Fill-in-the-Blank Questions
4. The process of _____________________ involves combining
shipments from various suppliers and shipping them as a
consolidated load to a single destination.
ANS: Freight Consolidation
Rationale: Freight consolidation is a strategy that combines
small shipments from multiple suppliers to create a full load that
reduces transportation costs and improves efficiency.
5. In logistics, a __________ is a logistics management practice
focused on reducing waste and improving service levels through
strategic collaborations and shared resources.
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