Free Certified in Logistics, Transportation and Distribution CLTD Exam Practice Test

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?

• Factor rating
  
• Center-of-gravity
  
• Break-even analysis
  
• Least cost
  

A company is sending a shipment to its customer in Italy It elects to pay the freight and be responsible for any liability and damage claims. Which of the following free on board (FOB) terms is the company using?

• FOB destination, freight collect
  
• FOB destination, freight prepaid
  
• FOB origin, freight prepaid
  
• FOB origin, freight collect
  

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

• Lean six sigma
  
• Kaizen
  
• Value stream mapping
  
• Five S methodology
  

A transit privilege permits a shipper to:

• 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.
  

An organization encourages proactive internal design efforts and collaboration with supply chain partners in order to consume less raw materials. This business practice reflects which of the following dimensions of sustainability?

• Education
  
• Ethics
  
• Economics
  
• Environmental
  

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

• 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.
  

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

• Order cycle time
  
• Logistics operations responsiveness
  
• Postsale logistics support
  
• Product availability
  

A manager would like to insure marine cargo for a 12-month period. Which of the following policies would be best to provide coverage for all of the shipment during this period?

• Open
  
• Special cargo
  
• All-risks
  
• Warehouse to warehouse
  

A carrier's costs 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?

• Incentive rates
  
• Any-quantity rates
  
• Freight all kind (FAK) rates
  
• Per-car and per-truckload rates
  

Given the data below, calculate the reorder point (ROP)Average daily demand = 30 units/dayLead time = 4 days Safety stock = 20

• 30 units
  
• 80 units
  
• 120 units
  
• 140 units