Question 1

In addition to order placement and order processing, which of the following steps are part of the order management process?

Accepted Answer

Order preparation and loading and order delivery are part of the order management process. Order picking may also be included, but it is not listed as an option. Order transit time and customer receiving may occur during the process, but they are not steps of the order management process itself. Order returns may be an additional step, but it is not listed as an option.

Question 2

The primary factor that reduces the need for companies to improve transportation sustainability is:

Accepted Answer

The answer of The primary factor that reduces the need...

Question 3

Which of the following ships are specifically designed to carry ISO shipping containers?

Accepted Answer

The answer of Which of the following ships are specifically...

Question 4

The primary role of the World Trade Organization (WTO) is to:

Accepted Answer

The answer of The primary role of the World Trade...

Question 5

A logistics company operates 10 distribution centers in China totaling 20 million square meters of floor space. Based on the typical utilization factors, how many total square meters are devoted to storage?

Accepted Answer

The answer of A logistics company operates 10 distribution centers...

Question 6

A warehouse manager is performing an ABC segmentation of the products in the warehouse. Based on the three items shown below, what is the correct warehouse segmentation for these items from the warehouse manager's perspective?

Accepted Answer

The answer of A warehouse manager is performing an ABC...

Question 7

One characteristic that could make it challenging for foreign company to penetrate the United States (U.S.) market is that the U.S. often has:

Accepted Answer

The answer of One characteristic that could make it challenging...

Question 8

Which of the following items undermines the attempts to simplify transportation pricing?

Accepted Answer

Rate-basis numbers can be confusing and difficult for shippers to understand, which makes it harder to simplify transportation pricing.

Question 9

Which of the following situations best describes when duty drawbacks can be granted?

Accepted Answer

Duty drawbacks are refunds of duties paid on imported materials used in products that are subsequently exported. Option A best describes a situation where duty drawbacks can be granted because the manufacturer is importing materials, transforming them into products, and then exporting them.

Question 10

In building a daily route schedule, which of the following factors provides the greatest challenge for a transportation manager?

Accepted Answer

Random demand can make it difficult for a transportation manager to create an efficient daily route schedule. If demand varies unpredictably, it can be difficult to assign the appropriate resources and determine the most efficient routes. Fixed traffic patterns, data cleanup, and customer base can all be accounted for and incorporated into the schedule with proper planning and management.

Question 11

A transit privilege permits a shipper to:

Accepted Answer

A transit privilege allows a shipper to enter a foreign or free trade zone to perform transport services. This allows the shipper to perform transportation services without having to pay tariffs or undergo customs clearance at each individual port of call.

Question 12

A logistics manager is asked to perform a total cost analysis for the organization. Which of the following trade-offs is critical to consider?

Accepted Answer

The trade-off between transportation costs and inventory carrying costs is critical to consider as both have a significant impact on the total cost. Higher transportation costs may lead to lower inventory carrying costs while lower transportation costs may lead to higher inventory carrying costs. Therefore, a logistics manager needs to strike a balance between these two costs to optimize the total cost.

Question 13

An American company that ships bulk product manufactures in Asia and sold in Europe may consider which of the following intermodal practices to help minimize total transportation costs?

Accepted Answer

The answer of An American company that ships bulk product...

Question 14

When looking at on organization's logistics system, which of the following expenses is the single largest variable cost?

Accepted Answer

The answer of When looking at on organization's logistics system,...

Question 15

Which of the following statements best describes the relationship between order cycle time and inventory?

Accepted Answer

The answer of Which of the following statements best describes...

Question 16

A company calculating shipping volume in unit load device containers is focusing on which mode of transportation?

Accepted Answer

Unit load device containers are specifically used in air freight to efficiently load, transport, and unload cargo on aircraft.

Question 17

Which of the following inventory cost elements is the most difficult to quantify?

Accepted Answer

Shortage cost is the most difficult to quantify as it involves the potential loss of sales and the cost of dissatisfying customers, which can be hard to estimate accurately. The other inventory cost elements (unit cost, cost of reordering, and carrying cost) are more straightforward to calculate.

Question 18

Which of the following port-related issues constitutes the greatest challenge when considering the use of post-panamax container ships?

Accepted Answer

Post-panamax container ships are significantly larger than the previous generation of ships, which means they require greater bridge clearance in order to safely navigate through waterways. This can be a significant challenge for ports that have low bridges or other physical infrastructure that limits the height of ships that can enter the port.

Question 19

As a means to protect domestic industries, which of the following requirements is an example of a non-trade barrier?

Accepted Answer

Mandating compliance with triple bottom line (TBL) is an example of a non-trade barrier as it requires companies to meet certain social and environmental standards. This can increase the cost of production for foreign companies, giving an advantage to domestic businesses. Requesting a mandatory consular invoice and demanding process efficiency are examples of administrative trade barriers, while utilizing Convention on International Sale of Goods (CISG) is a trade agreement that facilitates international trade.

Question 20

Triple bottom line (TBL) refers to balancing the following impacts:

Accepted Answer

The triple bottom line framework considers the economic, social, and environmental impacts of a business or organization, highlighting the importance of achieving sustainable and equitable outcomes in all these areas. This approach aims to move beyond purely profit-orientation and take into account the broader social and environmental contexts in which a business operates.

Exam 1: Certification in Logistics, Transportation and Distribution