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CLTD Sample Questions Answers

Questions 4

Which of the following parties play an integral role during the transportation process''

Options:

A.

Carriers, shippers, consignees, and financial institutions

B.

Carriers, consignees, freight brokers, and financial institutions

C.

General public, carriers, warehouses, and shippers

D.

Government, general public, shippers, and consignees

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Questions 5

A company that utilizes barges as a major mode of transportation would typically navigate in:

Options:

A.

global maritime routes.

B.

land bridges.

C.

inland waterways.

D.

intermodal transportation.

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Questions 6

When a company decides not to purchase insurance to cover a risk, it is pursuing what type of risk strategy?

Options:

A.

Retention

B.

Transfer

C.

Mixed

D.

Mitigation

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Questions 7

A supply chain manager is revising their organization's supply chain strategy with a greater emphasis on collaborative supply chain relationships. Which of the following barriers poses the greatest impediment to implementing their new strategy?

Options:

A.

Internal operational silos

B.

Vendor language and time zone differences

C.

Transportation carrier's systems limitations

D.

Enterprise resource planning (ERP) complexity

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Questions 8

An oil and gas company needs to ship petrol 1.000 miles from the port of entry to an inland refinery. Which of the following modes of transportation provides the best long-term, cost-efficient solution?

Options:

A.

Rail

B.

Trucking

C.

Pipeline

D.

Barge

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Questions 9

A corporation is redesigning its warehouse and has decided to use a rack system that allows each level to be accessed individually by placing pallets on wheeled frames. The rack system that best meets this criteria is:

Options:

A.

flow-through.

B.

push-back.

C.

drive-in.

D.

double-deep.

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Questions 10

A motor carrier is in a dispute with a customer over who is responsible for unloading goods at the customer's location. Which of the following documents would be used to resolve the dispute?

Options:

A.

Freight bill

B.

Bill of lading (B/L)

C.

Routing guide

D.

Domestic terms of sale

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Questions 11

The primary factor that reduces the need for companies to improve transportation sustainability

Options:

A.

decreased time to implement regulations.

B.

reduced packaging dimensions.

C.

lower fuel prices.

D.

more efficient tractors.

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Questions 12

A restriction that can be classified as a non-tariff barrier would be a(n):

Options:

A.

registration license.

B.

import quota.

C.

cargo preference.

D.

manufacturing location.

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Questions 13

Which of the following components represents the best opportunity to improve the effectiveness and efficiency of an order cycle?

Options:

A.

Order transmittal

B.

Order processing

C.

Order picking

D.

Order delivery

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Questions 14

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

Options:

A.

repositioning charge.

B.

peak season surcharge.

C.

currency adjustment factor.

D.

bunker adjustment factor.

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Questions 15

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

Options:

A.

Vehicle registration

B.

Fuel

C.

Maintenance

D.

Terminals

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Questions 16

A company's distribution center receives material from a number of sources and combines them into exact quantities for a specific destination. Which of the following functions is the distribution center providing?

Options:

A.

Cross-docking

B.

Consolidation

C.

Break-bulk

D.

Integration

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Questions 17

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

Options:

A.

Wet lease

B.

Dry lease

C.

Damp lease

D.

ACMI lease

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Questions 18

Which of the following terms of payment should an international purchasing manager use to guarantee that the shipment is made and the shipper gets paid for their product?

Options:

A.

Letter of credit

B.

Open account

C.

Sight draft

D.

Cash in advance

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Questions 19

A vessel operating under the threat of piracy or hostile military action is protected by the

Options:

A.

United Nations (UN) military forces.

B.

country closest to the vessel at the time of attack.

C.

shipping company registry.

D.

naval forces of the flag of registry.

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Questions 20

Which of the following types of benchmarking would a company utilize in order to determine why a significant gap exists in its order fill rates?

Options:

A.

Performance benchmarking

B.

Process benchmarking

C.

Product benchmarking

D.

Strategic benchmarking

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Questions 21

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

Options:

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

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Questions 22

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

Options:

A.

peddle time.

B.

stem miles.

C.

the number of pick-up locations.

D.

the size of customer shipments.

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Questions 23

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?

Options:

A.

Education

B.

Ethics

C.

Economics

D.

Environmental

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Questions 24

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?

Options:

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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Questions 25

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

Options:

A.

Omni-channel

B.

Multi-channel

C.

Business-to-consumer (B2C)

D.

E-commerce

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Questions 26

Given the data below, calculate the reorder point (ROP)

Average daily demand = 30 units/day

Lead time = 4 days Safety stock = 20

Options:

A.

30 units

B.

80 units

C.

120 units

D.

140 units

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Questions 27

Which of the following situations best describes when duty drawbacks can be granted?

Options:

A.

A manufacturerminimallytransforms imports, making products that are then exported.

B.

A distributor resells imported products.

C.

All of the raw materials are imported a product is created, and then sold domestically.

D.

An exported product has significant domestic content.

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Questions 28

A company that distributes spare parts for the automobile industry must consider duty rates when deciding where to sell its products Duty rates are heavily influenced by:

Options:

A.

the country of destination to which goods are exported.

B.

the country of origin from which goods are imported.

C.

the invoice value of imported goods.

D.

the invoice value of exported goods.

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Questions 29

Which of the following measures would a company use in attempting to improve its customer service dimension of dependability'?

Options:

A.

Order cycle time

B.

Inquiry response time

C.

On-time delivery

D.

Order agility

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Questions 30

Which of the following categories is a weakness of the rail systems'?

Options:

A.

Safety records

B.

Inflexible infrastructures

C.

Effects of the weather

D.

Routes from city centers

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Questions 31

A company desires to improve its cash flow situation by postponing its customs duties payment until the last possible point in the supply chain. The company should consider using which type of warehouse?

Options:

A.

Bonded

B.

Contract

C.

Third-party

D.

Government

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Questions 32

In a retail firm's implementation of vendor-managed inventory (VMI), what trading partners are responsible for setting target inventory levels and making restocking decisions?

Options:

A.

Retail consumers and vendors

B.

Retailer and its suppliers

C.

Retailer and its buyers

D.

Retail consumers and retailers

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Questions 33

Which of the following factors would be considered of strategic importance to a firm's logistics function?

Options:

A.

A firm operates in a competitive oligopoly

B.

Total cost of production

C.

Production lead time

D.

Order cycle time

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Questions 34

The practice of carriers charging all of their customers more during the peak harvest season is a type of pricing known as:

Options:

A.

differential rates.

B.

incremental rates.

C.

distributive rates.

D.

commodity rates.

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Questions 35

Which of the following outcomes is a potential advantage of operating an efficient reverse logistics process?

Options:

A.

Provides competitive differentiation

B.

Enables visibility throughout the supply chain

C.

Improves the product life cycle

D.

Reduces transportation costs

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Questions 36

From a health and safety perspective, which of the following sets of parameters must be taken into account when considering manual material handling?

Options:

A.

Task, working environment, equipment, and individual capacity

B.

Task, load, layout, and equipment

C.

Layout, load, working environment, and individual capacity

D.

Task,load, working environment, and individual capacity

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Questions 37

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

Options:

A.

export declaration.

B.

cost of transportation.

C.

standard cost.

D.

applied tariff.

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Questions 38

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?

Options:

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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Questions 39

Which of the following prerequisites is essential in order to establish an effective order management system?

Options:

A.

An ability to reserve inventory and determine a delivery date

B.

An ability to understand customer needs

C.

An ability to plan and build loads

D.

An ability to receive, enter, and validate an orders

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Questions 40

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

Options:

A.

Time

B.

Dependability

C.

Communication

D.

Convenience

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Questions 41

An organization concentrating its efforts on meeting the internal performance standards related to availability, operational performance, and reliability has focused on which of the following aspects of the customer relationship?

Options:

A.

Customer service

B.

Customer satisfaction

C.

Customer loyalty

D.

Customer success

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Questions 42

A developing country would like to improve its trade relations with Europe by updating its port infrastructure. Which international organization would help fund the project?

Options:

A.

The Bank for International Settlements

B.

The World Bank

C.

The Central Bank

D.

The International Monetary Fund

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Questions 43

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

Options:

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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Questions 44

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

Options:

A.

Agglomeration

B.

Lowest cost

C.

Differentiation

D.

Free market

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Questions 45

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

Options:

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 inventory (VMI) system.

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Exam Code: CLTD
Exam Name: Certified in Logistics, Transportation and Distribution
Last Update: Jul 11, 2024
Questions: 150
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