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  • Exam Name: Certified in Logistics, Transportation and Distribution
  • Last Update: Jun 22, 2024
  • Questions and Answers: 150
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CLTD Practice Exam Questions with Answers Certified in Logistics, Transportation and Distribution Certification

Question # 6

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.

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Question # 7

Consignment inventory requires that manufacturers

A.

deliver their products to the consumer and payment from consumers is based on supply.

B.

stock their products on retail stores shelves and payment from consumers is based on forecast.

C.

deliver their products to the consumer and wait for payment until consumers requires to refill stock level.

D.

stock their products on retail stores shelves and wait for payment until consumers purchase the product.

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Question # 8

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 # 9

Which of the following statements best describes the primary objective of most warehouses'?

A.

Provide additional storage to excess inventory and avoid its disposal

B.

Ensure that inventory levels are in accordance with the company's financial target

C.

Accurately reflect the company's working capital status

D.

Facilitate the movement of goods through the supply chain to the end consumer

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Question # 10

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?

A.

Bonded

B.

Contract

C.

Third-party

D.

Government

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Question # 11

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:

A.

reliability, and responsiveness.

B.

capability, and responsiveness.

C.

reliability, and capability.

D.

reliability, and availability.

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Question # 12

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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Question # 13

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

A.

Air

B.

Water

C.

Rail

D.

Pipeline

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Question # 14

What facility location method has the advantage of analyzing both quantitative data and hard-to-evaluate criteria'?

A.

Center-of-gravity

B.

Factor rating

C.

Location and break-even analysis

D.

Least-cost-per-lane

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Question # 15

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

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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Question # 16

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

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

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Question # 17

Climate-controlled warehouses are typically used

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.

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Question # 18

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

A.

Safety records

B.

Inflexible infrastructures

C.

Effects of the weather

D.

Routes from city centers

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Question # 19

What is the primary value-added service that a company would receive from using land-bridge services?

A.

Reduced risk

B.

Reduced transit time

C.

Increased reliability

D.

Increased capacity

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Question # 20

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

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Question # 21

A company setting up a warehouse wants to maintain a first in, first out (FIFO) stock rotation. Which of the following storage systems should they utilize?

A.

Pallet racking

B.

Block stacking

C.

Flow racking

D.

Push-back racking

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Question # 22

A trucking company purchased a tractor-trailer for $150,000 to support its short-haul business The tractor-trailer will be in service for 5 years before it will be sold at $55;000. With annual fuel costs estimated at $12,000; what is the annual depreciation for the vehicle?

A.

$7,000

B.

$11,000

C.

$19.000

D.

$30.000

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Question # 23

What may be the cause if the value of inventory is greater than the value of the net working capital?

A.

Receivables are too high.

B.

Cost of goods sold (COGS) is too high.

C.

Inventory is too high.

D.

High level of obsolescence.

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Question # 24

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.

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Question # 25

The key factors in modal determination when comparing the trade-off between cost and service include:

A.

distance and load size.

B.

carner capacity and distance.

C.

distance and carrier rates.

D.

carrier rates and load size.

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Question # 26

An ocean carrier's goal of maximizing total revenue of the entire ship by offering very competitive rates that cover their variable costs and then increasing rates according to what the traffic will bear is referred to as:

A.

any-quantity service rate.

B.

value of service rate.

C.

limited service rate.

D.

incentive rate.

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Question # 27

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

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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Question # 28

A planning process specifically designed to balance demand and supply within an organization and arrive at a consensus forecast is known as:

A.

advanced planning and scheduling (APS).

B.

collaborative planning, forecasting, and replenishment (CPFR).

C.

sales and operations planning (S&OP).

D.

distribution requirements planning (DRP).

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Question # 29

Which of the following modes of transportation is typically associated with detention charges?

A.

Rail

B.

Water

C.

Pipeline

D.

Truck

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Question # 30

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

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Question # 31

A non-profit transportation membership cooperative that arranges for the domestic or international shipment of member's cargo over any mode of transportation is known as a(n):

A.

freight bureau.

B.

freight broker association.

C.

shippers association.

D.

integrated service provider.

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Question # 32

Which of the following sets of elements are the major components of inventory carrying cost?

A.

Capital, storage space, inventory service, transportation

B.

Storage space, inventory service, inventory risk, transportation

C.

Capital, storage space, inventory service, inventory risk

D.

Capital, storage space inventory service, distribution

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Question # 33

Major retailers place pressure on a manufacturer of liquid laundry products made with water to reduce the amount of water content by half. While the result will bring savings in almost every area, where should the manufacturer focus this green initiative improvement effort?

A.

Material handling

B.

Packaging

C.

Transportation mode selection

D.

Product design

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Question # 34

Which of the following costs are the most intangible and subjective of all the carrying cost elements'?

A.

Risk cost

B.

Storage cost

C.

Service cost

D.

Capital cost

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Question # 35

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?

A.

Customer service

B.

Customer satisfaction

C.

Customer loyalty

D.

Customer success

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Question # 36

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.

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Question # 37

A company has a line haul cost between Point A and Point B of $5 per mile. The distance between the two points is 750 miles. What is the cost per hundredweight (cwt) for a shipment weighing 45.000 pounds?

A.

$012

B.

$5 00

C.

$8.33

D.

$9.00

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Question # 38

CLTD question answer

A company has prioritized customers A. B, and C. filling orders in that sequence. What are the impacts to customer service levels for customers B and C?

A.

100% service levels for B and C

B.

Customer B has higher service level

C.

Customer C has higher service level

D.

Customer B and C have same service level

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Question # 39

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 # 40

A transit privilege permits a shipper to:

A.

enter a foreign/free trade zone (FTZ) to perform transportation services.

B.

avoid paying tariffs to local authorities.

C.

temporarily stop a shipment to physically transform products.

D.

stop at any port of call without prior notification.

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Question # 41

Stockout frequency refers to:

A.

the probability that a firm will not have inventory available to meet customer orders.

B.

a single event where a firm will not have inventory available to meet customer orders.

C.

the cost of sales that a firm will have when insufficientinventory is available to meetcustomer orders.

D.

the percentage of days in which inventory necessary to meet customer orders is missing.

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Question # 42

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 # 43

In building a daily route schedule, which of the following factors provides the greatest challenge for a transportation manager?

A.

Random demand

B.

Fixed traffic patterns

C.

Data cleanup

D.

Customer base

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Question # 44

One characteristic that could make it challenging for a foreign company to penetrate the United States (U S.) market is that the U.S. often has:

A.

refused to cooperate on sustainability initiatives.

B.

adopted multiple standards that are state specific.

C.

eliminated all foreign/free trade zones (FTZs) outside of sea ports.

D.

followed Customs Trade Partnership Against Terrorism (C-TPAT) rules.

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