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CLTD Questions and Answers

Question # 6

In addition to declaring the origin of goods, a certificate of origin is used to determine the:

A.

export declaration.

B.

cost of transportation.

C.

standard cost.

D.

applied tariff.

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Question # 7

A logistics manager has received a lot of customer complaints concerning damaged products. This represents which of the following customer service dimensions?

A.

Time

B.

Dependability

C.

Communication

D.

Convenience

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Question # 8

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.

80 units

C.

120 units

D.

140 units

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Question # 9

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.

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Question # 10

A company finds itself constantly expediting 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 customers' 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.

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Question # 11

An organization encourages proactive internal design efforts and collaboration with supply chain partners in order to consume less raw materials. This business practice reflects which of the following dimensions of sustainability?

A.

Education

B.

Ethics

C.

Economics

D.

Environmental

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Question # 12

When determining the optimal logistics terminal location, one of the primary goals is to minimize:

A.

peddle time.

B.

stem miles.

C.

the number of pick-up locations.

D.

the size of customer shipments.

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Question # 13

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

A.

Rail bridge

B.

Last mile delivery

C.

Landway

D.

Land bridge

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Question # 14

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.

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Question # 15

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

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Question # 16

A firm offers their customers shorter order cycle times and increased product variety. Generally, this action would have which of the following impacts on total logistics costs?

A.

Increases total logistics costs

B.

Reduces total logistics costs

C.

Has no impact on total logistics costs

D.

Only affects service levels, not costs

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Question # 17

A logistics team has developed new packaging for their best-selling product that reduces the packaging costs by 60% and the overall package size by 25%. The material can no longer be stacked on pallets and must be shipped and stored in non-stackable, returnable plastic bins. Which of the following statements bests represents the potential trade-offs of implementing this change?

A.

Higher labor costs, improved customer service, and no change in warehouse costs

B.

Higher labor costs: increase in warehouse costs, and an increase in transportation costs

C.

Improved customer service, increase in warehouse storage costs, and a decrease in transportation costs

D.

Decrease in warehouse costs increase in transportation costs, and no change in customer service

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Question # 18

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.

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Question # 19

Airfreight companies often use dimensional (dim) weight to cost out shipments because of which of the following attributes of the product?

A.

Density

B.

Height

C.

Weight

D.

Value

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Question # 20

In warehouse operations, picking process occurs when:

A.

customer orders for product are ready to be shipped or to replenish a forward case or unit pick area.

B.

immediately after a product is stored in a designated location in order to be shipped to the customer.

C.

a kanban signal arrives to replenish material in the workshop.

D.

when a customer order needs to be replaced by a new product due to engineering changes.

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Question # 21

A customer is looking to purchase product from a company. Which of the following outputs of outbound order management would the customer consider primary?

A.

Order cycle time

B.

Logistics operations responsiveness

C.

Postsale logistics support

D.

Product availability

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Question # 22

A company wants to minimize tariff costs while avoiding the need to file for duty drawback. Which of the following practices would best achieve this objective?

A.

Adopt Customs Trade Partnerships Against Terrorism (C-TPAT) rules

B.

Use foreign/free trade zones (FTZs)

C.

Use an international third-party logistics (3PL) provider

D.

Ship by free on board (FOB) terms

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