Question 1

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:
A) selecting the best location in the warehouse for storage and retrieval.
B) total warehousing cost minimization on equipment, maintenance, and labor.
C) customization services like packaging, labeling, kitting, and setting up displays.
D) improving overall quality measured by ad-hoc metrics according to international standards.

Accepted Answer

Value-added warehousing services refer to services beyond the standard storage and distribution functions. Customization services like packaging, labeling, kitting, and setting up displays add value to the warehousing services and differentiate the provider from competitors. Options A and D refer to standard warehousing functions, while option B is an internal optimization that does not necessarily add value to the customer.

Question 2

When importing goods such as fruit and produce into the United States (U.S.), which government agency is responsible for protecting agriculture from harmful pests and diseases?
A) Food Safety and Inspection Service (FSIS)
B) Food and Drug and Administration (FDA)
C) U.S. Customs and Border Protection (CBP)
D) Farm Service Agency (FSA)

Accepted Answer

U.S. Customs and Border Protection (CBP) is responsible for protecting agriculture from harmful pests and diseases when importing goods such as fruit and produce into the U.S. The CBP works in partnership with other government agencies, including the Department of Agriculture (USDA) and the Animal and Plant Health Inspection Service (APHIS) to ensure that imported agricultural products meet U.S. regulatory standards and do not introduce harmful pests or diseases into the country. The FDA is responsible for regulating and ensuring the safety of imported food products, while the FSIS is responsible for inspecting meat, poultry, and egg products.

Question 3

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

Accepted Answer

D

Question 4

In addition to declaring the origin of goods, a certificate of origin is used to determine the:
A) export declaration
B) cost of transportation
C) standard cost
D) applied tariff

Accepted Answer

A certificate of origin is used to determine the applied tariff, as it specifies the country of origin and helps customs officials determine the correct tariff to apply to imported goods. It does not determine the export declaration, cost of transportation, or standard cost.

Question 5

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:
A) customer processes payment.
B) warehouse in notified to ship the goods.
C) customer receives that order in inventory.
D) company receives payment.

Accepted Answer

The answer of An operations manager in concerned that the...

Question 6

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.

Accepted Answer

The answer of Climate-controlled warehouses are typically used:
A) to assure...

Question 7

Which of the following factors would be considered of strategic importance to a firm's logistics function?
A) A firm operates in a competitive oligopoly
B) Total cost of production
C) Production lead time
D) Order cycle time

Accepted Answer

The answer of Which of the following factors would be...

Question 8

A carrier's casts are driven by equipment movement rather than shipment weight. Which of the following rates would be most appropriate for the carrier to utilize in charging its customers?
A) Incentive rates
B) Any-quantity rates
C) Freight all kind (FAK) rates
D) Per-car and per-truckload rates

Accepted Answer

Since carrier's casts are driven by equipment movement, "Freight all kind (FAK) rates" would be most appropriate for the carrier to utilize in charging its customers. FAK rates are a pricing strategy that assigns a single rate to multiple products or groups of products, regardless of what they are or how much they weigh. This type of rate would not require the carrier to differentiate between shipments based on weight or size, aligning it neatly with its equipment movement strategy.

Question 9

When determining the optimal logistics terminal location, one of the primary goals is to minimize:
A) peddle time
B) stem miles
C) the number of pick-up locations
D) the size of customer shipments

Accepted Answer

The answer of When determining the optimal logistics terminal location,...

Question 10

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?
A) Intermodal
B) Truck
C) Drone
D) Air

Accepted Answer

The answer of A pharmaceutical company makes drugs that control...

Question 11

Which of the following shipment modes in the most prone to packaging and product damage?
A) Air
B) Truck
C) Water
D) Rail

Accepted Answer

Water shipments are more prone to packaging and product damage due to factors like rough seas, moisture, and longer transit times.

Question 12

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

Accepted Answer

Flow racking is the best choice for maintaining a FIFO stock rotation, as it allows for easy movement of pallets from the loading end to the picking end, ensuring that the oldest stock is always picked first. Pallet racking, block stacking, and push-back racking do not necessarily facilitate FIFO stock rotation.

Question 13

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

Accepted Answer

Shorter order cycle times and increased product variety generally require more frequent and smaller shipments, which can increase transportation and inventory carrying costs, therefore leading to an increase in total logistics costs.

Question 14

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?
A) Distribution requirements planning (DRP)
B) Fixed order quantity/variable cycle
C) Periodic review
D) Kanban

Accepted Answer

The answer of Which of the following inventory ordering techniques...

Question 15

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.

Accepted Answer

Consignment inventory involves manufacturers leaving their products on retail store shelves without receiving payment until the product is purchased by the consumer. Therefore, option D is the most accurate description of consignment inventory. Options A, B, and C do not accurately describe the concept of consignment inventory.

Question 16

Under what circumstances should management generally consider utilizing qualitative forecasting techniques?
A) When real-time data flow is available
B) When historic data is both clear and relatively stable
C) When developing strategic-level forecasts
D) When demand is dependent on bill of material (BOM) calculations

Accepted Answer

The answer of Under what circumstances should management generally consider...

Question 17

Which of the following statements represents the primary function of inventory?
A) Make products available while minimizing total carrying cost
B) Realize economies of scale while minimizing total carrying cost
C) Reduce ordering cost while minimizing total carrying cost
D) Buffer against delivery time while minimizing total carrying cost

Accepted Answer

The primary function of inventory is to buffer against delivery time while minimizing total carrying cost. This means that inventory serves as a buffer between the time a customer places an order and the time the order is actually received, reducing the impact of delivery time on customer satisfaction. Minimizing total carrying cost is important to ensure that the benefits of holding inventory outweigh the costs associated with doing so. Choices A, B, and C are not the primary function of inventory but rather secondary objectives that may be achieved through effective inventory management.

Question 18

A customer is looking to purchase product from a company. Which of the following outputs of outbound order management would the customer consider primary?
A) Order cycle time
B) Logistics operations responsiveness
C) Postsale logistics support
D) Product availability

Accepted Answer

The answer of A customer is looking to purchase product...

Question 19

Which of the following lean tools would a warehouse team use to document, analyze, and improve the flow of information and materials to customers?
A) Lean six sigma
B) Kaizen
C) Value stream mapping
D) Five S methodology

Accepted Answer

Value stream mapping is a specific lean tool used to document, analyze, and improve the flow of information and materials to customers in a warehouse or manufacturing setting. Lean six sigma focuses on reducing defects and variability in processes, Kaizen is a general continuous improvement methodology, and Five S methodology is used to organize the workplace for efficiency and safety.

Question 20

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

Accepted Answer

When considering manual material handling, the parameters that must be taken into account are the task that needs to be accomplished, the load that needs to be handled, the working environment in which the task will be performed, and the capacity of the individual performing the task. Therefore, the best choice is D, as it includes all four of these parameters. A is incorrect because it leaves out the load, while B is incorrect because it leaves out the working environment and individual capacity. C is incorrect because it leaves out the task.

Exam 1: Certification in Logistics, Transportation and Distribution

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:

When importing goods such as fruit and produce into the United States (U.S.) , which government agency is responsible for protecting agriculture from harmful pests and diseases?

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

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

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:

Climate-controlled warehouses are typically used:

Which of the following factors would be considered of strategic importance to a firm's logistics function?

A carrier's casts are driven by equipment movement rather than shipment weight. Which of the following rates would be most appropriate for the carrier to utilize in charging its customers?

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

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?

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

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 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?

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?

Consignment inventory requires that manufacturers:

Under what circumstances should management generally consider utilizing qualitative forecasting techniques?

Which of the following statements represents the primary function of inventory?

A customer is looking to purchase product from a company. Which of the following outputs of outbound order management would the customer consider primary?

Which of the following lean tools would a warehouse team use to document, analyze, and improve the flow of information and materials to customers?

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