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CLTD Exam Dumps - Certified in Logistics, Transportation and Distribution

Question # 4

A corporation is projecting annual sales at S35 million, cost of goods sold (COGS) at S25 million, and administrative expenses at $3 million. In order to meet its corporate inventory turns goal of 5.0, their inventory level must average:

A.

$4.4 million.

B.

$5 million.

C.

$7 million.

D.

$7.6 million.

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Question # 5

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 # 6

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 # 7

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 # 8

In the economic utility function of logistics, logistics adds:

A.

formand time utilities to products,while other activities addplace and possession utilities.

B.

possession and place utilities toproducts,while other activities add form and time utilities.

C.

place and time utilities to products, while other activities add form and possession utilities.

D.

possession and form utilities to products, while other activities add time and place utilities.

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Question # 9

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 of the following statements best reflects the cost impact of the additional warehouses?

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

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Question # 10

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

A.

global maritime routes.

B.

land bridges.

C.

inland waterways.

D.

intermodal transportation.

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Question # 11

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 # 12

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 # 13

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 # 14

A logistics manager is developing a supply chain risk management plan incorporating contingency plans for alternatives to transportation failures. Which of the following factors best represents this approach?

A.

Avoidance

B.

Acceptance

C.

Mitigation

D.

Redundancy

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Question # 15

Which of the following methods is used for facility location selection based on the location of markets, the volume of goods shipped, and shipping costs?

A.

Factor rating

B.

Center-of-gravity

C.

Break-even analysis

D.

Least cost

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Question # 16

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 # 17

Which of the following items undermines the attempts to simplify transportation pricing'?

A.

Rate-basis numbers

B.

Class rate

C.

Commodity rate

D.

Incentive rate

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Question # 18

Which of the following shipment modes is the most prone to packaging and product damage?

A.

Air

B.

Truck

C.

Water

D.

Rail

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Question # 19

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 # 20

A trucking company picks up a shipment and takes it to a terminal where it is consolidated with other shipments going to the same city This trucking company is most likely a:

A.

truckload (TL) carrier

B.

milk run provider

C.

less-than-truckload (LTL) carirer.

D.

private fleet carrier

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Question # 21

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 # 22

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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