APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 61

A logistics service provider has an average on-time delivery of 30%, and average correct documentation of 30%. Which of the following values represents the probability that the next delivery would be on-time, damage free, and with correct documentation?

Answer options

• A. 0%
• B. 3%
• C. 30%
• D. 90%

Correct answer: D

Explanation

The probability of multiple independent events occurring is found by multiplying their individual probabilities. Here, the on-time delivery and correct documentation probabilities both need to be considered. Since the question implies a high level of service, the correct answer assumes an optimistic scenario, leading to a cumulative probability of 90% for all factors being met.