CLTD Online Practice Questions and Answers

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

Which of the following outcomes of warehouse operations is the most critical in designing a warehouse?

A. Optimizing product flow

B. Minimizing warehousing cost

C. Increasing inventory counting

D. Maximizing automation

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

Which of the following rules specifies whether the importer is responsible for insuring cargo?

A. World Trade Organization (WTO) rule

B. Lloyds of London rule

C. Incoterms rule

D. Shipper's rule

A carrier takes three weeks to deliver a product which has average sales of 1,000 units per week. The unit cost is $20 each and the carrying cost is 15%. What is the savings in the transportation inventory cost if management decides to change the mode of transportation to decrease time to one week?

A. $2,000

B. $3,000

C. $6,000

D. $9,000

When defining the business requirements of a new distribution center, one of the first requirements to be considered is the:

A. type of construction material needed.

B. customer service levels to be met.

C. calculation of the planned staffing levels.

D. development of the material handling equipment lists.

Which of the following theories is illustrated in the list below?

Stage 1: A new product is created to fill a domestic need and produced locally.

Stage 3: The newly created product is offered to international customers.

Stage 4: International customers develop expertise and offer the product at a lower cost to the original country.

A. International product life cycle theory

B. Porter's cluster theory

C. Sheffi's logistics cluster theory

D. Theory of Comparative Advantage

A third-party logistics (3PL) provider is planning an expansion of its transportation-based services. Which of the following services is the 3PL likely to offer as part of this expansion?

A. Pool distribution

B. Inventory management

C. Cross-docking

D. Customs brokerage

Location X has monthly fixed costs of $100,000 and per-unit variable costs of $10. Location Y has monthly fixed costs of $150,000 and per-unit variable costs of $9. At what volume would these locations have equal total costs?

A. 13,157

B. 19,000

C. 50,000

D. 250,000

Which of the following statements is a cause of inaccurate forecasting?

A. Poor management involvement

B. Promotional marketing

C. Capacity increase due to new investment

D. Strong operations in comparison to poor marketing strategy