Question 1

One characteristic that could make it challenging for foreign company to penetrate the United States (U.S.) market is that the U.S. often has:

Accepted Answer

A)   refused to cooperate on sustainability initiatives.
B)   adopted multiple standards that are state specific.
C)   eliminated all foreign/free trade zones (FTZs)  outside of sea ports.
D)   followed Customs Trade Partnership Against Terrorism (C-TPAT)  rules. C

Question 2

Which of the following terms refer to the contract leasing of an airplane where only the equipment, maintenance, and insurance are include?

Accepted Answer

A)   Wet lease
B)   Dry lease
C)   Damp lease
D)   ACMI lease A

Question 3

Which of the following measures would a company use in attempting to improve its customer service dimension of dependability?

Accepted Answer

A)   Order cycle time
B)   Inquiry response time
C)   On-time delivery
D)   Order agility D

Question 4

A logistic team has developed new packaging for their best-selling product that reduces the packaging costs by 60% and the overall package size by 25%. The material can no longer be stacked on pallets and must be shipped and stored in non-stackable, returnable plastic bins. Which of the following statements bests represents the potential trade-offs of implementing this change?

Accepted Answer

A)   Higher labor costs, improved customer service, and no change in warehouse costs
B)   Higher labor costs, increase in warehouse costs, and an increase in transportation costs
C)   Improved customer service, increase in warehouse storage costs, and a decrease in transportation costs
D)   Decrease in warehouse costs, increase in transportation costs, and no change in customer service

Question 5

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?

Accepted Answer

A)   Food Safety and Inspection Service (FSIS) 
B)   Food and Drug and Administration (FD
A)  
C)   U.S. Customs and Border Protection (CBP) 
D)   Farm Service Agency (FS
A)

Question 6

Which of the following terms of payment should an international purchasing manager use to guarantee that the shipment is made and the shipper gets paid for their product?

Accepted Answer

A)   Letter of credit
B)   Open account
C)   Sight draft
D)   Cash in advance

Question 7

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

Accepted Answer

A)   Weighted-factor rating method
B)   transportation problem model
C)   Cost volume analysis
D)   Center-of-gravity method

Question 8

An oil and gas company needs to ship petrol 1,000 miles from the port on entry to an inland refinery. Which of the following modes of transportation provides the best long-term, cost-efficient solution?

Accepted Answer

A)   Rail
B)   Trucking
C)   Pipeline
D)   Barge

Question 9

A logistics manager seeks total integration of components that are essential to achieve stated objectives. Which of the following frameworks would be best to implement?

Accepted Answer

A)   System concepts and analysis
B)   Total cost of ownership (TCO) 
C)   Lean six sigma concepts
D)   Network inventory cost minimization

Question 10

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

Accepted Answer

A)   registration license.
B)   import quota.
C)   cargo preference.
D)   manufacturing location.

Question 11

In a retail firm's implementation of vendor-managed inventory (VMI), what trading partners are responsible for setting target inventory levels and making restocking decisions?

Accepted Answer

A)   Retail consumers and vendors
B)   Retailer and its suppliers
C)   Retailer and its buyers
D)   Retail consumers and retailers

Question 12

Which of the following statements best reflects the intent of a shipper and a carrier who are negotiating a contract utilizing the integrative bargaining technique?

Accepted Answer

A)   The shipper is integrating its shipping needs and the carrier is integrating its market power to achieve better contract terms individually.
B)   The shipper and the carrier are attempting to understand each other's needs to create mutually beneficial contract terms.
C)   The shipper and the carrier are making an integrated effort to make extreme demands followed up by small, slow concessions.
D)   The shipper and the carrier are in direct conflict with each other's goals and are attempting to take advantage of each other.

Question 13

The practice of carriers charging all of their customers more during the peak harvest season is a type of pricing known as:

Accepted Answer

A)   differential rates.
B)   incremental rates.
C)   distributive rates.
D)   commodity rates.

Question 14

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?

Accepted Answer

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

Question 15

A motor carrier is in a dispute with a customer over who is responsible for unloading for unloading goods at the customer's location. Which of the following documents would be used to resolve the dispute?

Accepted Answer

A)   Freight bill
B)   Bill of lading (B/L) 
C)   Routing guide
D)   Domestic terms of sale

Question 16

An international organization has a pricing strategy that allows it to sell its product at different prices depending on the country where the product is sold. Which of the following unintended consequences is a result of this strategy?

Accepted Answer

A)   Counterfeit products in the supply chain
B)   Gray market products in the supply chain
C)   Hostile takeover by a conglomerate
D)   Decrease in profits due to variable revenues

Question 17

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?

Accepted Answer

A)   Pallet racking
B)   Block stacking
C)   Flow racking
D)   Push-back racking

Question 18

Excluding cost, which of the following sets of criteria describes the primary drivers for transportation mode selection?

Accepted Answer

A)   Capacity, transit time, reliability, safety, and supply chain security participation
B)   Accessibility, capacity, transit time, reliability, and financial stability
C)   Accessibility, capacity, transit time, reliability, and safety
D)   Capacity, transit time, safety, supply chain security participation, and availability

Question 19

Which of the following parties play an integral role during the transportation process?

Accepted Answer

A)   Carriers, shippers, consignees, and financial institutions
B)   Carriers, consignees, freight brokers, and financial institutions
C)   general public, carriers, warehouses, and shippers
D)   Government, general public, shippers, and consignees

Question 20

A logistics manager is developing a supply chain risk management plan incorporating contingency plans for alternatives to transport failures. Which of the following factors best represents this approach?

Accepted Answer

A)   Avoidance
B)   Acceptance
C)   Mitigation
D)   Redundancy

Exam 1: Certification in Logistics, Transportation and Distribution