CPIM Practice Exam

Which function of logistics includes advertising, sales force, and reseller incentives?

1. Promotion

2. Transportation

3. Distribution Requirements Planning

4. Inventory Control

The correct answer is: Promotion

The function of logistics that encompasses advertising, sales force, and reseller incentives is indeed related to promotion. Promotion plays a crucial role in logistics as it supports the overall marketing strategy by ensuring that products are communicated effectively to potential customers, thereby driving sales and demand. By utilizing advertising and providing incentives to sales teams and resellers, this function helps to enhance visibility, encourage the sale of products, and ultimately facilitate the efficient movement of goods through the supply chain. The other options represent distinct logistics functions. Transportation focuses on the physical movement of goods, ensuring they arrive at their destination efficiently. Distribution Requirements Planning is concerned with the strategic logistics planning that ensures products are available to meet customer demand. Inventory Control pertains to managing stock levels to prevent shortages or overstock situations. Each of these options plays an important role in logistics, but only promotion directly involves activities designed to encourage sales and market visibility.