Question 1

Which of the following groups was formed for the purpose of eliminating the trade barriers among its members?
A) United nations (UN)
B) European Union (EU)
C) Organization of Petroleum Exporting Countries (OPEC)
D) North Atlantic Treaty Organization (NATO)

Accepted Answer

The European Union (EU) was formed for the purpose of eliminating trade barriers and creating a common market among its member countries. The United Nations (UN) was formed for the purpose of promoting international cooperation and resolving conflicts, the Organization of Petroleum Exporting Countries (OPEC) was formed to coordinate and unify the petroleum policies of its member countries and ensure the stabilization of oil markets, and the North Atlantic Treaty Organization (NATO) was formed for the purpose of collective defense against potential military threats.

Question 2

Which of the following terms refer to the contract leasing of an airplane where only the equipment, maintenance, and insurance are include?
A) Wet lease
B) Dry lease
C) Damp lease
D) ACMI lease

Accepted Answer

The answer of Which of the following terms refer to...

Question 3

A company is considering implementing collaborative planning, forecasting, and replenishment (CPFR). Which of the following statements best reflects one of the objectives of CPFR?
A) It represents a sequence of business processes between consumers and retailers.
B) It replaces traditional forecasting methods with a shared single forecast among trading partners.
C) It represents a sequence of business processes within the manufacturing environment.
D) It replaces traditional inventory management procedures with a vendor-managed (VMI) system.

Accepted Answer

The answer of A company is considering implementing collaborative planning,...

Question 4

A company wishes to ship large quantities via ocean freight, utilizing the entire vessel capacity. The most appropriate contract of carriage to use a:
A) bill of loading (B/L).
B) wet lease.
C) charter party.
D) letter of credit.

Accepted Answer

A charter party is the most appropriate contract of carriage to use when a company wishes to ship large quantities via ocean freight and utilize the entire vessel capacity. The charterer rents the entire vessel for a certain period of time and is responsible for all costs associated with the voyage, including fuel and port fees. This is in contrast to a bill of lading, which is a document issued by a carrier to a shipper, acknowledging that goods have been received on board a vessel for shipment to a specific destination. Wet lease is a contract for the leasing of a complete aircraft, including crew, maintenance, and insurance, for a specific period. A letter of credit is a financial document used in international trade to ensure that payment will be made from the buyer to the seller.

Question 5

A company has a line haul cost between Point A and Point B of $5 per mile. The distance between the two points is 750 miles. What is the cost per hundredweight (cwt) for a shipment weighing 45,000 pounds?
A) $0.12
B) $5.00
C) $8.33
D) $9.00

Accepted Answer

To find the cost per cwt, we need to first find the total cost of transportation for the shipment.
Total cost = distance x line haul cost per mile
Total cost = 750 miles x $5/mile
Total cost = $3750
Now, we need to find the cost per pound:
Cost per pound = total cost / total weight
Total weight = 45,000 pounds
Cost per pound = $3750 / 45,000 pounds
Cost per pound = $0.08333
To find the cost per cwt, we need to multiply the cost per pound by 100:
Cost per cwt = cost per pound x 100
Cost per cwt = $0.08333 x 100
Cost per cwt = $8.33, which is option C.

Question 6

A company would like to eliminate unnecessary returns and/or minimize handling. It designs a process to check and screen merchandise at the entry point into the organization. This is an example of:
A) defect reduction
B) avoidance
C) gatekeeping
D) asset recovery

Accepted Answer

The process described is known as gatekeeping. It involves screening and checking merchandise at the entry point to prevent unnecessary returns and minimize handling. A is incorrect because defect reduction refers to strategies aimed at reducing the occurrence of defects in products or services. B is incorrect because avoidance refers to strategies aimed at avoiding specific risks or events. D is incorrect because asset recovery refers to strategies aimed at recovering value from assets no longer needed by an organization.

Question 7

A logistics manager is developing a supply chain risk management plan incorporating contingency plans for alternatives to transport failures. Which of the following factors best represents this approach?
A) Avoidance
B) Acceptance
C) Mitigation
D) Redundancy

Accepted Answer

The answer of A logistics manager is developing a supply...

Question 8

The allocation of revenues and costs to customer segments or individual customers in order to estimate segment value is known as:
A) customer relationship management (CRM).
B) customer profitability analysis.
C) customer service analysis.
D) customer standardization analysis.

Accepted Answer

The answer of The allocation of revenues and costs to...

Question 9

The scope of logistics includes transportation:
A) order processing, inventory carrying costs, and production output.
B) inventory carrying costs, warehousing, and cost management.
C) manufacturing, customer accommodation, and purchasing.
D) inventory carrying costs, order processing, and warehousing.

Accepted Answer

The answer of The scope of logistics includes transportation:
A) order...

Question 10

Net advantages gained by the sharing of common locations by similar enterprises is based on which of the following terms?
A) Agglomeration
B) Lowest cost
C) Differentiation
D) Free market

Accepted Answer

Agglomeration refers to the concentration of similar businesses or industries in the same geographic area. This can lead to several advantages such as the sharing of common locations and resources, increased collaboration and innovation, and reduced costs. Therefore, the net advantages gained by the sharing of common locations by similar enterprises is based on the concept of agglomeration.

Question 11

A transportation manager is interested in selecting the optimal mode of transportation based on 3 key criteria: speed, availability, and dependability. Which of the following modes best meets the criteria?
A) Truck and rail
B) truck and air
C) Air and rail
D) Air and ocean

Accepted Answer

Air and rail transportation together offer a balance of speed (air), availability (rail), and dependability (rail), making them optimal for these criteria.

Question 12

A company is sending a shipment to its customer in Italy. It elects to pay the freight and be responsible for any liability and damage claims. Which of the following free on board (FOB) terms is the company using?
A) FOB destination, freight collect
B) FOB destination, freight prepaid
C) FOB origin, freight prepaid
D) FOB origin, freight collect

Accepted Answer

FOB destination, freight prepaid means that the seller is responsible for the shipment until it reaches its destination and the seller pays the freight charges. This is the most appropriate option for a company that is responsible for any liability and damage claims.

Question 13

A major retailer has informed a product manufacturer that they must take back all of their dunnage. The manufacturer's major decision in implementing reverse logistics will most likely be to:
A) manage the process internally or outsource to a third party.
B) take back the dunnage or tell the retailer to destroy it all.
C) reduce packaging materials to save money but risk more damage.
D) increase the selling price to the retailer to cover increased costs.

Accepted Answer

The major decision for the manufacturer would be whether to manage the reverse logistics process internally or outsource it to a third party. This decision will depend on various factors such as the complexity of the process, available resources, costs involved, and expertise required. Ultimately, the manufacturer will need to decide on the most efficient and cost-effective way to handle the return of the dunnage.

Question 14

Which of the following factors would be the greatest challenge for a firm planning to ship goods internationally by truck?
A) Variable cost of fuel
B) Unpredictable weather and climate
C) Variations in road conditions
D) Complex rules and regulations

Accepted Answer

Complex rules and regulations are often the greatest challenge for firms shipping goods internationally by truck, as different countries may have different customs procedures, documentation requirements, and regulations regarding goods and transit. This can cause delays, extra paperwork, and increased costs for the company. While factors such as variable fuel costs, unpredictable weather and climate, and variations in road conditions can all impact international trucking, they are generally less complex and more predictable than regulatory issues.

Question 15

The surcharge applied by shipping lines to sea freight to offset adverse variation in fuel cost is called:
A) repositioning charge
B) peak season surcharge
C) currency adjustment factor
D) bunker adjustment factor

Accepted Answer

The answer of The surcharge applied by shipping lines to...

Question 16

Compared to a centralized distribution network strategy, an organization using a decentralized distribution network strategy can usually expect:
A) lower cost of lost sales and higher inventory cost
B) higher cost of lost sales and higher inventory cost.
C) lower cost of transportation and lower warehousing cost.
D) higher cost of transportation and lower warehousing cost.

Accepted Answer

A decentralized distribution network strategy typically involves multiple distribution centers located closer to customers, resulting in lower transportation costs and reduced inventory levels due to faster delivery times.

Question 17

According to the SCOR model, the five major categories of metrics that should be used to measure the performance of Process D1: Deliver Stocked Product include assets, costs, flexibility:
A) reliability, and responsiveness
B) capability, and responsiveness
C) reliability, and capability
D) reliability, and availability

Accepted Answer

The SCOR model identifies five major performance attributes for measuring supply chain performance: reliability, responsiveness, agility (flexibility), costs, and assets.

Question 18

A company receives automobile parts from global manufactures into its distribution center before redeploying the parts to local retail outlets. Which of the following documents can be used to proactively plan for the redeployment of the parts?
A) Bill of lading (B\L)
B) Advance ship notice (ASN)
C) Routing guide
D) Shipment manifest

Accepted Answer

The answer of A company receives automobile parts from global...

Question 19

A company finds itself constantly expending its customer's retail store deliveries in order to prevent stock-outs. The best solution to this problem is to:
A) carry additional inventory to satisfy customer's demand.
B) balance the supply of inventory with the demand.
C) minimize the inventory risk of product obsolescence.
D) increase inventory turns to the highest possible value.

Accepted Answer

The answer of A company finds itself constantly expending its...

Question 20

Which of the following is normally within the logistics function of a manufacturing organization?
A) Production management
B) Financial management
C) Warehouse management
D) Marketing management

Accepted Answer

The answer of Which of the following is normally within...

Exam 1: Certification in Logistics, Transportation and Distribution

Which of the following groups was formed for the purpose of eliminating the trade barriers among its members?

Which of the following terms refer to the contract leasing of an airplane where only the equipment, maintenance, and insurance are include?

A company is considering implementing collaborative planning, forecasting, and replenishment (CPFR) . Which of the following statements best reflects one of the objectives of CPFR?

A company wishes to ship large quantities via ocean freight, utilizing the entire vessel capacity. The most appropriate contract of carriage to use a:

A company has a line haul cost between Point A and Point B of $5 per mile. The distance between the two points is 750 miles. What is the cost per hundredweight (cwt) for a shipment weighing 45,000 pounds?

A company would like to eliminate unnecessary returns and/or minimize handling. It designs a process to check and screen merchandise at the entry point into the organization. This is an example of:

A logistics manager is developing a supply chain risk management plan incorporating contingency plans for alternatives to transport failures. Which of the following factors best represents this approach?

The allocation of revenues and costs to customer segments or individual customers in order to estimate segment value is known as:

The scope of logistics includes transportation:

Net advantages gained by the sharing of common locations by similar enterprises is based on which of the following terms?

A transportation manager is interested in selecting the optimal mode of transportation based on 3 key criteria: speed, availability, and dependability. Which of the following modes best meets the criteria?

A company is sending a shipment to its customer in Italy. It elects to pay the freight and be responsible for any liability and damage claims. Which of the following free on board (FOB) terms is the company using?

A major retailer has informed a product manufacturer that they must take back all of their dunnage. The manufacturer's major decision in implementing reverse logistics will most likely be to:

Which of the following factors would be the greatest challenge for a firm planning to ship goods internationally by truck?

The surcharge applied by shipping lines to sea freight to offset adverse variation in fuel cost is called:

Compared to a centralized distribution network strategy, an organization using a decentralized distribution network strategy can usually expect:

According to the SCOR model, the five major categories of metrics that should be used to measure the performance of Process D1: Deliver Stocked Product include assets, costs, flexibility:

A company receives automobile parts from global manufactures into its distribution center before redeploying the parts to local retail outlets. Which of the following documents can be used to proactively plan for the redeployment of the parts?

A company finds itself constantly expending its customer's retail store deliveries in order to prevent stock-outs. The best solution to this problem is to:

Which of the following is normally within the logistics function of a manufacturing organization?