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CIPS Global Logistics Strategy Sample Questions (Q60-Q65):
NEW QUESTION # 60
XYZ Manufacturing is a company based in the USA that produces industrial equipment. The company has been focusing on enhancing its reverse logistics practices to align with environmental regulations. Which of the following acts is an example of an environmental law that may influence XYZ Manufacturing's reverse logistics activities?
- A. Equal Pay Act
- B. Americans with Disabilities Act
- C. Clean Air Act
- D. Occupational Safety and Health Act
Answer: C
Explanation:
The Clean Air Act is a USA environmental law addressing air pollution and emissions. [P-176]
NEW QUESTION # 61
A multinational corporation decides to divest ownership of its subsidiaries, vendors, and suppliers to focus on product strategy. What term best describes this strategic shift?
- A. Vertical disintegration
- B. Fragmentation
- C. Outsourcing
- D. Integration
Answer: A
Explanation:
Vertical disintegration occurs when corporations divest their ownership of subsidiaries and suppliers to focus on innovation. [P-107]
NEW QUESTION # 62
GreenTech is a start-up that specializes in manufacturing solar panels. They have noticed that several of their competitors are offering take-back and recycling services for old solar panels. GreenTech is now considering implementing a similar returns service to maintain a competitive edge.
What external stakeholder factor is motivating GreenTech to consider implementing a returns service for their solar panels?
- A. Supplier expectations
- B. Pressure group influence
- C. Government fines
- D. Customer demand and competition
Answer: D
Explanation:
Competitive pressure and customer demand are driving GreenTech to adopt reverse logistics practices. [P-175]
NEW QUESTION # 63
Sarah is a product manager for a company that specializes in electronic gadgets. She is launching a new innovative gadget that has never been introduced in the market before. In which phase of the product life cycle is flexibility likely to be the most crucial for Sarah's new gadget?
- A. Decline phase
- B. Growth phase
- C. Maturity phase
- D. Introduction phase
Answer: D
Explanation:
During the introduction phase of a product's life cycle, innovation and adaptation are key. Flexibility is crucial as the product is being introduced to a new market and consumer demand is uncertain. [P-184]
NEW QUESTION # 64
How does downstream-to-upstream information flow impact the supply chain?
- A. It improves the efficiency of financial transactions.
- B. It triggers the production process and interactions with suppliers.
- C. It primarily serves to provide marketing data to the company.
- D. It ensures that materials flow only in one direction.
Answer: B
Explanation:
Downstream-to-upstream flow (e.g., customer orders) initiates production and supplier coordination to fulfill demand. [P-139]
NEW QUESTION # 65
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