CLTD practice questions 11–20

1. Question 11 · 152 in bank

   Climate-controlled warehouses are typically used:

   • Ato assure operators can work in the best conditions.
   • Bfor storage of food items such as pasta and sugar.
   • Cfor storage of raw material used in aerospace industry.
   • Dfor storage of certain agricultural and medical products.

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   Answer: B

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2. Question 12 · 152 in bank

   An operations manager in concerned that the order-to-cash cycle for their largest customer is too long. The manager is referring to the time that elapses from when the company receives an order from the customer until the:

   • Acustomer processes payment.
   • Bwarehouse in notified to ship the goods.
   • Ccustomer receives that order in inventory.
   • Dcompany receives payment.

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   Answer: C

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3. Question 13 · 152 in bank

   Consignment inventory requires that manufacturers:

   • Adeliver their products to the consumer and payment from consumers is based on supply.
   • Bstock their products on retail stores shelves and payment from consumers is based on forecast.
   • Cdeliver their products to the consumer and wait for payment until consumers requires to refill stock level.
   • Dstock their products on retail stores shelves and wait for payment until consumers purchase the product.

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   Answer: D

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4. Question 14 · 152 in bank

   A pharmaceutical company makes drugs that control the spread of the influenza virus after outbreaks occur. Deployment to outbreak areas requires a transportation mode that is fast and provides door-to-door connectivity. Which of the following modes of transportation should the company choose?

   • AIntermodal
   • BTruck
   • CDrone
   • DAir

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   Answer: B

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5. Question 15 · 152 in bank

   Which of the following inventory ordering techniques would a company's corporate warehouse utilize if it is interested in meeting both the quantity and timing requirements of demand from its regional warehouses?

   • ADistribution requirements planning (DRP)
   • BFixed order quantity/variable cycle
   • CPeriodic review
   • DKanban

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   Answer: D

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6. Question 16 · 152 in bank

   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?

   • APallet racking
   • BBlock stacking
   • CFlow racking
   • DPush-back racking

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   Answer: A

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7. Question 17 · 152 in bank

   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?

   • AIncreases total logistics costs
   • BReduces total logistics costs
   • CHas no impact on total logistics costs
   • DOnly affects service levels, not costs

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   Answer: C

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8. Question 18 · 152 in bank

   A third-party logistics (3PL) provider is seeking to market its value-added warehousing services to international shippers. These services refer to activities such as:

   • Aselecting the best location in the warehouse for storage and retrieval.
   • Btotal warehousing cost minimization on equipment, maintenance, and labor.
   • Ccustomization services like packaging, labeling, kitting, and setting up displays.
   • Dimproving overall quality measured by ad-hoc metrics according to international standards.

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   Answer: B

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9. Question 19 · 152 in bank

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

   • Apeddle time
   • Bstem miles
   • Cthe number of pick-up locations
   • Dthe size of customer shipments

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   Answer: C

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10. Question 20 · 152 in bank

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

    • Aexport declaration
    • Bcost of transportation
    • Cstandard cost
    • Dapplied tariff

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    Answer: A

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CLTD practice, question 11. 152 questions available.