CLTD Module 2 -Section A - Logistics Network Design Test Questions Answered Correctly
Why do org's periodically reassess their distribution networks - Answers customers increasing
expectations
mergers and acquisitions
freight volumes have shifted
Who makes up network design team - Answers rep from mfg, senior management champion, and even
supplier, LSP/3PL, customer reps
Why is it important to include third party LSPs in network design team? - Answers develops mindset the
best solution may not be internal
What tool defines scope of work, objectives, and end results? - Answers charter
what is needed to get started with first step? - Answers Inputs
What are deliverables being produced called - Answers outputs
When additions to project are not scoped and assigned proper time, people, money, what is this called?
- Answers scope creep
8 common drivers of change - Answers Competitive advantage
Cost reduction
Customer change
Customer demographic change
Supply market change
Mfg process change
Mergers+acquisitions
Sustainability changes
Six steps of As-Is Audit process - Answers 1. Gather data
2. map current system
3. describe network's key activities+functions
4. measure+evaluate against benchmarks
5. list current gaps between strategy+actual capacity
, 6. Generate tactical plan for closing gaps
Recommendations for # of facilities and their general purpose+location are results of what? - Answers
Goal to find optimal efficiency at the selected strategic service levels
Variables to research when considering global market entry (5) - Answers 1. Company's market strategy
2. type of product/service being sold and life cycle
3. size of market, $ values of goods/serv
4. infrastructure, economic climate, culture
5. Is target market growing or flat
Individual or small firm located in target market area that sells mfgs products according to company's
terms of sale - Answers Agent
They buy mfgs products to resell at a profit. They set own prices and negotiates terms, has wide
inventory +after-sale support - Answers distributor
A foreign office staffed by exporting firm employees who sells goods in foreign market. Sales considered
domestic - Answers market subsidiary
A U.S. devised means of securing tax reductions for U.S. exporters, by using subsidiary the org
establishes - Answers foreign sales corporations
paying a fee to mfg and sell product created by another. Franchising and management contracts are
both forms of it - Answers Licensing
Used by orgs who prefer to focus on domestic markets or don't have internal resources to market
abroad. ETC and EMC - Answers indirect exporting
acts like an org's foreign sales department and operates on commission. Great for novice exporter by
assuming risks and complexities - Answers Export management companies
Buy goods from org and resells them at a profit - Answers Export trading company
the two ways firms piggyback w/their suppliers in an indirect exporting arrangement - Answers 1.
Exporter asks one of its less established suppliers to sell product in foreign market
2. Firm w/ production facility set up in another country can ask suppliers to supply assembly
pieces+services to customer needing spare parts.
Company interested selling abroad can join forces w/another org to form new firm or can invest in mfg
ops and distribution of other firm - Answers joint venture
Why do org's periodically reassess their distribution networks - Answers customers increasing
expectations
mergers and acquisitions
freight volumes have shifted
Who makes up network design team - Answers rep from mfg, senior management champion, and even
supplier, LSP/3PL, customer reps
Why is it important to include third party LSPs in network design team? - Answers develops mindset the
best solution may not be internal
What tool defines scope of work, objectives, and end results? - Answers charter
what is needed to get started with first step? - Answers Inputs
What are deliverables being produced called - Answers outputs
When additions to project are not scoped and assigned proper time, people, money, what is this called?
- Answers scope creep
8 common drivers of change - Answers Competitive advantage
Cost reduction
Customer change
Customer demographic change
Supply market change
Mfg process change
Mergers+acquisitions
Sustainability changes
Six steps of As-Is Audit process - Answers 1. Gather data
2. map current system
3. describe network's key activities+functions
4. measure+evaluate against benchmarks
5. list current gaps between strategy+actual capacity
, 6. Generate tactical plan for closing gaps
Recommendations for # of facilities and their general purpose+location are results of what? - Answers
Goal to find optimal efficiency at the selected strategic service levels
Variables to research when considering global market entry (5) - Answers 1. Company's market strategy
2. type of product/service being sold and life cycle
3. size of market, $ values of goods/serv
4. infrastructure, economic climate, culture
5. Is target market growing or flat
Individual or small firm located in target market area that sells mfgs products according to company's
terms of sale - Answers Agent
They buy mfgs products to resell at a profit. They set own prices and negotiates terms, has wide
inventory +after-sale support - Answers distributor
A foreign office staffed by exporting firm employees who sells goods in foreign market. Sales considered
domestic - Answers market subsidiary
A U.S. devised means of securing tax reductions for U.S. exporters, by using subsidiary the org
establishes - Answers foreign sales corporations
paying a fee to mfg and sell product created by another. Franchising and management contracts are
both forms of it - Answers Licensing
Used by orgs who prefer to focus on domestic markets or don't have internal resources to market
abroad. ETC and EMC - Answers indirect exporting
acts like an org's foreign sales department and operates on commission. Great for novice exporter by
assuming risks and complexities - Answers Export management companies
Buy goods from org and resells them at a profit - Answers Export trading company
the two ways firms piggyback w/their suppliers in an indirect exporting arrangement - Answers 1.
Exporter asks one of its less established suppliers to sell product in foreign market
2. Firm w/ production facility set up in another country can ask suppliers to supply assembly
pieces+services to customer needing spare parts.
Company interested selling abroad can join forces w/another org to form new firm or can invest in mfg
ops and distribution of other firm - Answers joint venture
