Certified in Logistics, Transportation and Distribution (CLTD) Practice Test

Questions # 21:

Higher throughput operations enable private warehouses to:

Options:

spread out variable costs over large output volumes.

spread out fixed costs over large output volumes.

allocate total unit costs on the basis of traffic volume.

accomplish better facility utilization with declining overheads.

Questions # 22:

A company would like to encourage shippers to partner on sustainability initiatives Which of the following rates would best meet this objective?

Options:

Density

Incentive

Differential

Blanket

Questions # 23:

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:

Options:

$4.4 million.

$5 million.

$7 million.

$7.6 million.

Questions # 24:

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

Options:

Safety records

Inflexible infrastructures

Effects of the weather

Routes from city centers

Questions # 25:

The primary role of the World Trade Organization (WTO) is to:

Options:

establish an international system of payment.

stabilize international currency exchange rates.

enforce free trade on a global basis.

create global free trade agreements.

Questions # 26:

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

Options:

An ability to reserve inventory and determine a delivery date

An ability to understand customer needs

An ability to plan and build loads

An ability to receive, enter, and validate an orders

Questions # 27:

Which of the following is normally within the logistics function of a manufacturing organization?

Options:

Production management

Financial management

Warehouse management

Marketing management

Questions # 28:

Which of the following facility location techniques is equivalent to a break-even point?

Options:

Weighted-factor rating method

Transportation problem model

Cost volume analysis

Center-of-gravity method

Questions # 29:

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

Options:

Center-of-gravity

Factor rating

Location and break-even analysis

Least-cost-per-lane

Questions # 30:

Which of the following order characteristics would make increased levels of inventory necessary?

Options:

Speed

Variability

Cost

Delivery

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