Question 1

A supply chain manager is revising their organization's supply chain strategy with a greater emphasis on collaborative supply chain relationships. Which of the following barriers poses the greatest impediment to implementing their new strategy?
A) Internal operational silos
B) Vendor language and time zone differences
C) Transportation carrier's system limitations
D) Enterprise resource planning (ERP) complexity

Accepted Answer

The answer of A supply chain manager is revising their...

Question 2

In a retail firm's implementation of vendor-managed inventory (VMI), what trading partners are responsible for setting target inventory levels and making restocking decisions?
A) Retail consumers and vendors
B) Retailer and its suppliers
C) Retailer and its buyers
D) Retail consumers and retailers

Accepted Answer

In a vendor-managed inventory (VMI) system, the responsibility for setting target inventory levels and making restocking decisions lies with the retailer and its suppliers (trading partners). The suppliers have access to real-time inventory data and can proactively restock the retailer's inventory as needed, based on agreed-upon target levels. This allows for better inventory management and reduces the risk of stockouts or overstocking.

Question 3

An organization concentrating its efforts on meeting the internal performance standards related to availability, operational performance, and reliability has focused on which of the following aspects of the customer relationship?
A) Customer service
B) Customer satisfaction
C) Customer loyalty
D) Customer success

Accepted Answer

Focusing on internal performance standards such as availability, operational performance, and reliability is directly related to ensuring customer satisfaction, as these factors contribute to meeting customer expectations and needs.

Question 4

In the economic utility function of logistics, logistics adds:
A) form and time utilities to products, while other activities add place and possession utilities.
B) possession and place utilities to products, while other activities add form and possession utilities.
C) place and time utilities to products, while other activities add form and possession utilities.
D) possession and form utilities to products, while other activities add time and place utilities.

Accepted Answer

Logistics adds place and time utilities to products, while other activities such as production and marketing add form and possession utilities to them.

Question 5

Given the data below, calculate the reorder point (ROP). Average daily demand = 30 units/day Lead time = 4 days Safety stock = 20
A) 30 units
B) 8 units
C) 120 units
D) 140 units

Accepted Answer

ROP = (Average daily demand x Lead time) + Safety stock
= (30 x 4) + 20
= 140 units
Therefore, the answer is D) 140 units.

Question 6

A carrier receives damaged goods. What actions best describes what the carrier should do so that it is not liable for the damages?
A) Rewrite the bill of lading (B\L).
B) Make exception note on B\L from clean to uniform.
C) Make an exception note on B\L from clean to soiled.
D) Reject the B\L.

Accepted Answer

The carrier should make an exception note on the bill of lading (B\L) from clean to soiled to indicate that the goods were received in a damaged condition, which helps protect the carrier from liability for the damages.

Question 7

An ocean carrier's goal of maximizing total revenue of the entire ship by offering very competitive rates that cover their variable costs and then increasing rates according to what the traffic will bear is referred to as:
A) any-quantity service rate
B) value of service rate
C) limited service rate
D) incentive rate

Accepted Answer

The answer of An ocean carrier's goal of maximizing total...

Question 8

Random stocking can be greatly improved through the use of a(n):
A) advanced planning system (APS).
B) inventory management system (IMS)
C) transportation management system (TMS).
D) warehouse management system (WMS).

Accepted Answer

A warehouse management system (WMS) is specifically designed to optimize warehouse operations, including stocking, by improving inventory tracking, storage, and retrieval processes.

Question 9

A corporation is projecting annual sales at $35 million, cost of goods sold (COGS) at $25 million, and administrative expenses at $3 million. In order to meet its corporate inventory turns goal of 5.0, their inventory level must average:
A) $4.4 million
B) $5 million
C) $7 million
D) $7.6 million.

Accepted Answer

The answer of A corporation is projecting annual sales at...

Question 10

A corporation is redesigning its warehouse and has decided to use a rack system that allows each level to be accesses individually by placing pallets on wheeled frames. The rack system that best meets this criteria is:
A) flow-through
B) push-back
C) drive-in
D) double-deep

Accepted Answer

A drive-in rack system allows forklift operators to drive into the racks and retrieve pallets from any level. This makes it easy to access each level individually, which is the criteria set by the corporation. Flow-through and push-back rack systems do not allow for this level of individual access. Double-deep rack systems may require additional equipment to access each level individually.

Question 11

A non-profit transportation membership cooperative that arranges for the domestic or international shipment of member's cargo over any mode of transportation is known as a(n):
A) freight bureau.
B) freight broker association.
C) shipper's association.
D) integrated service provider.

Accepted Answer

A shipper's association is a non-profit membership cooperative that arranges for the shipment of its member's cargo over any mode of transportation. Freight bureaus and freight broker associations are typically for-profit entities, while integrated service providers offer a wider range of logistics services beyond just transportation.

Question 12

A tracking company picks up a shipment and takes it to a terminal where it is consolidated with over shipments going to the same city. This trucking company is most likely a:
A) truckload (TL) carrier
B) milk run provider
C) less-than-truckload (LTL) carrier
D) private fleet carrier

Accepted Answer

The answer of A tracking company picks up a shipment...

Question 13

When a company decides not to purchase insurance to cover a risk, it is pursuing what type of risk strategy?
A) Retention
B) Transfer
C) Mixed
D) Mitigation

Accepted Answer

When a company decides not to purchase insurance and instead chooses to pay for potential losses out of their own funds, it is pursuing a retention risk strategy. This can be a viable option for small risks or risks where the potential cost of insurance outweighs the potential cost of the loss.

Question 14

Which of the following statements best reflects the intent of a shipper and a carrier who are negotiating a contract utilizing the integrative bargaining technique?
A) The shipper is integrating its shipping needs and the carrier is integrating its market power to achieve better contract terms individually.
B) The shipper and the carrier are attempting to understand each other's needs to create mutually beneficial contract terms.
C) The shipper and the carrier are making an integrated effort to make extreme demands followed up by small, slow concessions.
D) The shipper and the carrier are in direct conflict with each other's goals and are attempting to take advantage of each other.

Accepted Answer

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

Question 15

Selecting a third-party logistics (3PL) or fourth-party logistics (4PL) provider is an example of a(n):
A) strategic alliance
B) joint venture
C) acquisition
D) internal function

Accepted Answer

Selecting a third-party logistics (3PL) or fourth-party logistics (4PL) provider is an example of a strategic alliance, where two or more companies come together to achieve a mutually beneficial objective. It involves a long-term relationship between the companies and often requires substantial investments of time and resources.

Question 16

Which of the following costs are the most intangible and subjective of all the carrying cost elements?
A) Risk cost
B) Storage cost
C) Service cost
D) Capital cost

Accepted Answer

The answer of Which of the following costs are the...

Question 17

A manufacturer must consider the long-term effects of its products' impact on the environment. A key product design consideration is:
A) routing and scheduling
B) material handling
C) facility planning
D) packaging options

Accepted Answer

Packaging options have a significant impact on the environment, as they contribute to waste and pollution. A manufacturer must consider the use of recyclable, biodegradable, and sustainable materials for packaging, as well as the reduction of packaging materials wherever possible, in order to minimize its product's environmental impact.

Question 18

Which of the following prerequisites is essential in order to establish an effective order management system?
A) An ability to reserve inventory and determine a delivery date
B) An ability to understand customer needs
C) An ability to plan and build loads
D) An ability to receive, enter, and validate an orders

Accepted Answer

The answer of Which of the following prerequisites is essential...

Question 19

According to the Theory of Comparative Advantage, which of the following reasons justifies a country to export a product?
A) The exporting country produces the product utilizing less labor than other countries.
B) The exporting country's wage rate in producing the good is lower than in other countries.
C) The exporting country's productivity is higher in producing the good than the productivity of other countries.
D) The exporting country's cost of producing the good, relative to other goods, is at least as low as in other countries.

Accepted Answer

The answer of According to the Theory of Comparative Advantage,...

Question 20

A company's distribution center receives material from a number of sources and combines them into exact quantities for a specific destination. Which of the following functions is the distribution center providing?
A) Cross-docking
B) Consolidation
C) Break-bulk
D) Integration

Accepted Answer

The answer of A company's distribution center receives material from...

Exam 1: Certification in Logistics, Transportation and Distribution

A supply chain manager is revising their organization's supply chain strategy with a greater emphasis on collaborative supply chain relationships. Which of the following barriers poses the greatest impediment to implementing their new strategy?

In a retail firm's implementation of vendor-managed inventory (VMI) , what trading partners are responsible for setting target inventory levels and making restocking decisions?

An organization concentrating its efforts on meeting the internal performance standards related to availability, operational performance, and reliability has focused on which of the following aspects of the customer relationship?

In the economic utility function of logistics, logistics adds:

Given the data below, calculate the reorder point (ROP) . Average daily demand = 30 units/day Lead time = 4 days Safety stock = 20

A carrier receives damaged goods. What actions best describes what the carrier should do so that it is not liable for the damages?

An ocean carrier's goal of maximizing total revenue of the entire ship by offering very competitive rates that cover their variable costs and then increasing rates according to what the traffic will bear is referred to as:

Random stocking can be greatly improved through the use of a(n) :

A corporation is projecting annual sales at $35 million, cost of goods sold (COGS) at $25 million, and administrative expenses at $3 million. In order to meet its corporate inventory turns goal of 5.0, their inventory level must average:

A corporation is redesigning its warehouse and has decided to use a rack system that allows each level to be accesses individually by placing pallets on wheeled frames. The rack system that best meets this criteria is:

A non-profit transportation membership cooperative that arranges for the domestic or international shipment of member's cargo over any mode of transportation is known as a(n) :

A tracking company picks up a shipment and takes it to a terminal where it is consolidated with over shipments going to the same city. This trucking company is most likely a:

When a company decides not to purchase insurance to cover a risk, it is pursuing what type of risk strategy?

Which of the following statements best reflects the intent of a shipper and a carrier who are negotiating a contract utilizing the integrative bargaining technique?

Selecting a third-party logistics (3PL) or fourth-party logistics (4PL) provider is an example of a(n) :

Which of the following costs are the most intangible and subjective of all the carrying cost elements?

A manufacturer must consider the long-term effects of its products' impact on the environment. A key product design consideration is:

Which of the following prerequisites is essential in order to establish an effective order management system?

According to the Theory of Comparative Advantage, which of the following reasons justifies a country to export a product?

A company's distribution center receives material from a number of sources and combines them into exact quantities for a specific destination. Which of the following functions is the distribution center providing?