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

Questions # 31:

A transit privilege permits a shipper to:

Options:

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

avoid paying tariffs to local authorities.

temporarily stop a shipment to physically transform products.

stop at any port of call without prior notification.

Questions # 32:

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

Options:

registration license.

import quota.

cargo preference.

manufacturing location.

Questions # 33:

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

Options:

repositioning charge.

peak season surcharge.

currency adjustment factor.

bunker adjustment factor.

Questions # 34:

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:

Rail

Trucking

Pipeline

Barge

Questions # 35:

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):

Options:

freight bureau.

freight broker association.

shippers association.

integrated service provider.

Questions # 36:

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

Options:

The shorter the order cycle length, the more inventory is required to be held

The shorter the order cycle length, the less inventory is required to be held

The longer the order cycle length, the less inventory is required to be held

The changes made to the order cycle has little/no impact on inventory levels

Questions # 37:

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

Options:

United Nations (UN) military forces.

country closest to the vessel at the time of attack.

shipping company registry.

naval forces of the flag of registry.

Questions # 38:

Which of the following activities best describes the functionality of decoupling stock within firms' inventory systems?

Options:

Separation of the manufacturing process from order processing

Separation of the manufacturing process from the selling process

Maintaining inventory to accommodate uncertainty in demand at different geographical positions

Maintaining inventory at a central location for all stages of the value-creation process

Questions # 39:

A logistics service provider has an average on-time delivery of 30%, average damage free delivery of 30%, and average correct documentation of 30%. Which of the following values represents the probability that the next delivery would be on-time, damage free, and with correct documentation?

Options:

30%

90%

Questions # 40:

Which of the following groups was formed for the purpose of eliminating the trade barriers among its members?

Options:

United Nations (UN)

European Union (EU)

Organization of Petroleum Exporting Countries (OPEC)

North Atlantic Treaty Organization (NATO)

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