Question 1

Which of the following statements represents the primary function of inventory?

Accepted Answer

A)  Make products available while minimizing total carrying cost 
B)  Realize economies of scale while minimizing total carrying cost 
C)  Reduce ordering cost while minimizing total carrying cost 
D)  Buffer against delivery time while minimizing total carrying cost

Question 2

When a logistics manager assigns workers to receive, store, and move goods into and out of warehouse, they are managing which of the following activities?

Accepted Answer

A)  Physical distribution 
B)  Materials handling 
C)  Production management 
D)  Inventory management

Question 3

Which of the following terms refers to an integrated approach of simultaneously selling to consumers through multiple distribution channels?

Accepted Answer

A)  Omni-channel 
B)  Multi-channel 
C)  Business-to-consumer (B2
C)  
D)  E-commerce

Question 4

A carrier's casts are driven by equipment movement rather than shipment weight. Which of the following rates would be most appropriate for the carrier to utilize in charging its customers?

Accepted Answer

A)  Incentive rates 
B)  Any-quantity rates 
C)  Freight all kind (FAK) rates 
D)  Per-car and per-truckload rates

Question 5

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

Accepted Answer

A)  The shorter the order cycle length, the more inventory is required to be held 
B)  The shorter the order cycle length, the less inventory is required to be held 
C)  The longer the order cycle length, the less inventory is required to be held 
D)  The changes made to the order cycle has little/no impact on inventory levels

Question 6

Which of the following modes of transportation is characterized as having the highest fixed cost and lowest variable cost?

Accepted Answer

A)  Air 
B)  Water 
C)  Rail 
D)  Pipeline

Question 7

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

Accepted Answer

A)  30 units 
B)  8 units 
C)  120 units 
D)  140 units

Question 8

While designing a logistics network, which of the following actions does a manager need to complete in order to identify the key logistics goals and perform benchmark analysis?

Accepted Answer

A)  Define process steps 
B)  Conduct a supply chain audit 
C)  Examine network alternatives 
D)  Complete a facility location study

Question 9

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:

Accepted Answer

A)  reliability, and responsiveness 
B)  capability, and responsiveness 
C)  reliability, and capability 
D)  reliability, and availability

Question 10

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

Accepted Answer

A)  economic, social, and environmental. 
B)  environmental, ecological, and ethical. 
C)  social, environmental, and regulatory. 
D)  financial, economic, and social.

Question 11

Which of the following costs represents an example of a fixed cost in the motor carrier industry?

Accepted Answer

A)  Vehicle registration 
B)  Fuel 
C)  Maintenance 
D)  Terminals

Question 12

The international commercial document that serves as a quote to obtain a letter of credit or an import license is called a(n):

Accepted Answer

A)  commercial invoice 
B)  pro forma invoice 
C)  export license 
D)  consular invoice

Question 13

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

Accepted Answer

A)  routing and scheduling 
B)  material handling 
C)  facility planning 
D)  packaging options

Question 14

Climate-controlled warehouses are typically used:

Accepted Answer

A)  to assure operators can work in the best conditions. 
B)  for storage of food items such as pasta and sugar. 
C)  for storage of raw material used in aerospace industry. 
D)  for storage of certain agricultural and medical products.

Question 15

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

Accepted Answer

A)  Order preparation and loading and order picking 
B)  Order preparation and loading and order delivery 
C)  Order transit time and order returns 
D)  Order transit time and customer receiving

Question 16

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?

Accepted Answer

A)  FOB destination, freight collect 
B)  FOB destination, freight prepaid 
C)  FOB origin, freight prepaid 
D)  FOB origin, freight collect

Question 17

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

Accepted Answer

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.

Question 18

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

Accepted Answer

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.

Question 19

Under what circumstances should management generally consider utilizing qualitative forecasting techniques?

Accepted Answer

A)  When real-time data flow is available 
B)  When historic data is both clear and relatively stable 
C)  When developing strategic-level forecasts 
D)  When demand is dependent on bill of material (BOM) calculations

Question 20

In an effort to increase their customer service levels and reduce order cycle time, a company is considering adding two additional warehouses to their overall operations. As a result, which of the following statements best reflects the cost impact of the additional warehouses?

Accepted Answer

A)  Lower inventory costs and higher facility costs 
B)  Higher inventory costs and lower facility costs 
C)  Higher inventory costs and higher inbound transportation costs 
D)  Lower inventory costs and lower inbound transportation costs

Exam 1: Certification in Logistics, Transportation and Distribution