Certification in Logistics, Transportation and Distribution v1.0 (CLTD)

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Total 261 questions

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.


Answer : C

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


Answer : C

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.


Answer : B

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


Answer : B

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.


Answer : A

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.


Answer : A

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


Answer : A

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.


Answer : A

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


Answer : C

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


Answer : B

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


Answer : D

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


Answer : A

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)


Answer : B

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.


Answer : C

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


Answer : B

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Total 261 questions