WGU D470 EXAMINATION PREP 2026
QUESTIONS AND CORRECT SOLUTIONS
ALREADY PASSED
⫸ Supply Chain. Ans: Suppliers + Logistics + Customers
⫸ Five Rights. Ans: Right product, place, time, quantity, and cost.
⫸ Total Logistics Concept (TLC). Ans: Integrates logistics elements
(transport, storage, packaging, etc.) into a single optimized system.
⫸ Trade-off analysis. Ans: Ensures that savings in one area do not
cause higher costs elsewhere.
⫸ Logistics costs in the U.S. (2020). Ans: Around 7.6% of GDP.
⫸ Transport cost. Ans: ~48% of logistics cost (highest).
⫸ Logistics impact on GDP. Ans: 7.4%-14.5% depending on
country.
⫸ Logistics planning levels. Ans: Strategic (long-term), Tactical
(mid-term), Operational (short-term).
,⫸ Planning vs. Control. Ans: Planning = doing the right thing
(design), Control = doing things right (execution).
⫸ Logistics planning cycle. Ans: Where are we now? What are our
objectives? Plan the operations, Monitor performance, Adjust and
repeat.
⫸ Globalization in logistics. Ans: Requires logistics systems that are
complex, integrated, and flexible.
⫸ Challenges of globalization. Ans: Long lead times, multiple
transport modes, customization by region.
⫸ DPP. Ans: Assigns true logistics costs to individual products.
⫸ MRP/DRP. Ans: Plans production and distribution to minimize
waste.
⫸ Logistics system components. Ans: Moving functions (transport)
and stationary functions (storage, manufacturing).
⫸ Economic importance of logistics. Ans: Impacts GDP and cost
components across various industries.
,⫸ Historical evolution of logistics. Ans: From informal coordination
in the 1950s-60s to strategic rethinking in the 2000s.
⫸ Third-party logistics (3PL). Ans: Growth observed in the 1980s
due to rising costs and technology adoption.
⫸ Emergence of supply chain management. Ans: 1990s focus on
end-to-end collaboration.
⫸ Key trends in logistics (2010s-present). Ans: Green logistics,
humanitarian logistics, lean/agile supply chains, e-commerce, AI, and
Big Data.
⫸ Cost variations by industry. Ans: High-value products have low
logistics %, low-value heavy products have high logistics %.
⫸ Small firms logistics costs. Ans: Higher logistics % of sales due to
lack of economies of scale.
⫸ JIT. Ans: Reduces inventory; delivers only what's needed, when
needed.
⫸ Cost-to-Serve. Ans: Calculates real cost of serving individual
customers.
⫸ DOM. Ans: Matches orders to best inventory location.
, ⫸ Control Tower. Ans: Uses Big Data and AI for real-time supply
chain decisions.
⫸ Cost leader. Ans: Low inventory, asset utilization.
⫸ Service leader. Ans: Multiple delivery channels, tailored service.
⫸ Segmented supply chains. Ans: Meet differing customer needs
better than one-size-fits-all models.
⫸ Logistics. Ans: Scope is inside the company.
⫸ Supply Chain Management. Ans: Scope is end-to-end (supplier to
customer).
⫸ Logistics focus. Ans: Operational.
⫸ Supply Chain Management focus. Ans: Strategic.
⫸ Inventory in Logistics. Ans: Buffer between functions.
⫸ Inventory in Supply Chain Management. Ans: Flow optimizer.
QUESTIONS AND CORRECT SOLUTIONS
ALREADY PASSED
⫸ Supply Chain. Ans: Suppliers + Logistics + Customers
⫸ Five Rights. Ans: Right product, place, time, quantity, and cost.
⫸ Total Logistics Concept (TLC). Ans: Integrates logistics elements
(transport, storage, packaging, etc.) into a single optimized system.
⫸ Trade-off analysis. Ans: Ensures that savings in one area do not
cause higher costs elsewhere.
⫸ Logistics costs in the U.S. (2020). Ans: Around 7.6% of GDP.
⫸ Transport cost. Ans: ~48% of logistics cost (highest).
⫸ Logistics impact on GDP. Ans: 7.4%-14.5% depending on
country.
⫸ Logistics planning levels. Ans: Strategic (long-term), Tactical
(mid-term), Operational (short-term).
,⫸ Planning vs. Control. Ans: Planning = doing the right thing
(design), Control = doing things right (execution).
⫸ Logistics planning cycle. Ans: Where are we now? What are our
objectives? Plan the operations, Monitor performance, Adjust and
repeat.
⫸ Globalization in logistics. Ans: Requires logistics systems that are
complex, integrated, and flexible.
⫸ Challenges of globalization. Ans: Long lead times, multiple
transport modes, customization by region.
⫸ DPP. Ans: Assigns true logistics costs to individual products.
⫸ MRP/DRP. Ans: Plans production and distribution to minimize
waste.
⫸ Logistics system components. Ans: Moving functions (transport)
and stationary functions (storage, manufacturing).
⫸ Economic importance of logistics. Ans: Impacts GDP and cost
components across various industries.
,⫸ Historical evolution of logistics. Ans: From informal coordination
in the 1950s-60s to strategic rethinking in the 2000s.
⫸ Third-party logistics (3PL). Ans: Growth observed in the 1980s
due to rising costs and technology adoption.
⫸ Emergence of supply chain management. Ans: 1990s focus on
end-to-end collaboration.
⫸ Key trends in logistics (2010s-present). Ans: Green logistics,
humanitarian logistics, lean/agile supply chains, e-commerce, AI, and
Big Data.
⫸ Cost variations by industry. Ans: High-value products have low
logistics %, low-value heavy products have high logistics %.
⫸ Small firms logistics costs. Ans: Higher logistics % of sales due to
lack of economies of scale.
⫸ JIT. Ans: Reduces inventory; delivers only what's needed, when
needed.
⫸ Cost-to-Serve. Ans: Calculates real cost of serving individual
customers.
⫸ DOM. Ans: Matches orders to best inventory location.
, ⫸ Control Tower. Ans: Uses Big Data and AI for real-time supply
chain decisions.
⫸ Cost leader. Ans: Low inventory, asset utilization.
⫸ Service leader. Ans: Multiple delivery channels, tailored service.
⫸ Segmented supply chains. Ans: Meet differing customer needs
better than one-size-fits-all models.
⫸ Logistics. Ans: Scope is inside the company.
⫸ Supply Chain Management. Ans: Scope is end-to-end (supplier to
customer).
⫸ Logistics focus. Ans: Operational.
⫸ Supply Chain Management focus. Ans: Strategic.
⫸ Inventory in Logistics. Ans: Buffer between functions.
⫸ Inventory in Supply Chain Management. Ans: Flow optimizer.
