Cambridge IGCSE Commerce: Logistics in Commerce — Practice Questions (0715)

These practice questions cover all of Topic 4, Logistics in commerce, of Cambridge IGCSE Commerce (0715, 2028 syllabus): the functions and methods of transport, how to choose between them, containerisation, warehouse functions and types, and warehouse automation. They include multiple-choice items like Paper 1 and scenario-based structured questions like Paper 2.

These are original questions written for Marlbridge, for revision and practice on this content. They are not reproduced past-paper questions, and they do not replicate the exam’s exact structure, question count or mark tariffs — examination boards hold copyright in their own papers. Use these alongside the official past papers available free from your board.

Related: Logistics study guide and revision notes

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Section A - multiple choice

1. Which transport method is most suitable for moving crude oil continuously from an oilfield to a refinery 300 km away? [1] A air freight B container ship C pipeline D delivery van

2. Which type of warehouse stores imported goods before customs duty has been paid? [1] A bonded B cash and carry C cold storage D regional distribution centre

3. Transferring a container from a large ocean ship to a smaller ship at a hub port is called: [1] A logistics postponement B transshipment C voice picking D quantity function

Section B - structured questions

4. State the three functions of transport in the supply chain. [3]

5. Kiran Steel makes steel beams in a city 600 km from a port. It exports 2 000 tonnes a month. (a) Identify the most suitable transport method to move the beams to the port. Justify your choice. [3] (b) Explain two disadvantages of using road transport for this journey. [4]

6. Medilink supplies vaccines that must be kept at 2-8 °C to hospitals in three neighbouring countries. (a) Explain two factors Medilink should consider when choosing a transport method. [4] (b) Identify the type of warehouse Medilink needs. [1]

7. Explain two advantages of containerisation to an exporter. [4]

8. Explain how a warehouse helps to keep prices stable for a seasonal crop such as rice. [3]

9. FreshCart, a supermarket chain, uses a regional distribution centre (RDC) to supply 40 shops. (a) Describe what an RDC does. [2] (b) Explain two benefits to FreshCart of using an RDC. [4]

10. An online retailer is introducing robotics, automated sorting and voice picking in its warehouse. (a) Describe how voice picking works. [2] (b) Discuss whether warehouse automation will improve customer service. [6]

11. A furniture maker in Vietnam must deliver 800 sofas to a retailer in Germany within six weeks. The sofas are bulky but not fragile. Evaluate whether sea or air transport is more appropriate. [6]

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Answers

1. C. [1]

2. A. [1]

3. B. [1]

4. Time [1], place [1] and quantity [1].

5. (a) Rail (freight train) [1]: carries very heavy, bulky loads [1] over long distances at lower cost per tonne than road [1]. (b) Any two explained: each truck carries a limited load, so many journeys are needed, raising cost [2]; congestion and road conditions can delay deliveries to the port [2]; more fuel, pollution and risk of accidents [2]. [max 4]

6. (a) Any two explained: nature of goods - vaccines are perishable and must stay refrigerated [2]; urgency - hospitals may need them quickly [2]; security - high value, so theft or damage must be avoided [2]; reliability of transporter - late delivery could ruin the stock [2]. [max 4] (b) Cold storage warehouse. [1]

7. Any two explained: sealed containers reduce theft and damage [2], which lowers insurance costs; containers move between ship, rail and road without unpacking [2], making loading faster and cheaper; standard sizes allow fast handling by cranes [2]. [max 4]

8. Rice is harvested at one time of year [1]; storing it in a warehouse lets it be released gradually [1], so supply matches demand all year and prices do not fall sharply at harvest or rise sharply later [1].

9. (a) A large warehouse that receives goods from many suppliers [1] and sends mixed deliveries to the chain’s shops in a region [1]. (b) Any two explained: fewer, fuller deliveries to each shop reduce transport costs [2]; shops need less storage space, so more floor space for selling [2]; better stock control across the chain [2]. [max 4]

10. (a) Workers wear a headset [1] and receive spoken instructions about where to go and what to pick, confirming each pick by voice [1]. (b) [6] Likely to improve: less human error and better picking accuracy mean customers receive the correct items; faster sorting speeds delivery; improved inventory control means fewer “out of stock” problems. Limits: high installation cost may raise prices; breakdowns can stop dispatch; fewer staff may reduce flexibility for unusual orders or returns. Conclusion: service is likely to improve if systems are reliable and staff are retrained.

11. [6] Sea: far cheaper for 800 bulky sofas; a container ship has large capacity; six weeks is enough time for a typical Asia-Europe voyage plus road delivery; sofas are not fragile or perishable. Air: much faster, but very expensive for bulky goods and limited cargo space would mean many flights. Risks with sea: port delays or bad weather could threaten the deadline. Conclusion: sea transport in containers is more appropriate, provided shipping is booked early to meet the six-week deadline.

A note on exam technique for this topic

In “choose a method” questions, always justify the choice with at least two of the six factors in the syllabus - nature of goods, urgency, cost, security, distance and reliability. For 6-mark evaluations, give both sides and a clear conclusion that answers the question.

Frequently asked questions

How many transport methods does 0715 list? Five: road, rail, air, sea and pipeline, each with named examples such as couriers, freight trains, freight planes, container ships and tankers.

What is the difference between containerisation and transshipment? Containerisation is packing goods in standard containers. Transshipment is moving those containers from one ship or vehicle to another on the way to their destination.

Which warehouse types are on the syllabus? Bonded, cold storage, cash and carry, and regional distribution centres.

Official syllabus

Cambridge IGCSE Commerce (0715) syllabus for 2028 - official syllabus PDF.