1.

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

management system?
A. An activity to reserve inventory and determine a delivery date
B. An ability to understand customer needs
C. An ability to plan and build loads
D. An ability to receive, enter, and validate an order
(from Module 5 Topic3: Stage 1 / and section B)

2. Which of the following situations best describes when duty drawbacks can be granted?
A. A manufacturer minimally transforms imports, making products that are then exported
B. A distributor resells imported products
C. All of the raw materials are imported, a product is created, and then sold domestically
D. An exported product has significant domestic content
(from Module 9 Topic 3 / and sectionC))

3. A carrier takes three weeks to deliver a product which has average sales 1,000 units per
week. The unit cost is $20 each and the carrying cost is 15%. What is the savings in the
transportation inventory cost if management decides to change the mode of
transportation is decreased?
A. $2,000
B. $3,000
C. $6,000
D. $9,000
1000*20*15%=3000
Module 6, Section B Topic 1

4. Which of the following location method has the advantage of analyzing both quantitative
data and hard-to-evaluate criteria?
A. Center-of-gravity
B. Factor rating
C. Location and break-even analysis
D. Least-cost-per-lane
(from Module 2 Topic 6 / and section A

5. Selecting a third-party logistics (3PL) or fourth-party logistics (4PL) provider is an example

of a(n).
A. Strategic alliance
B. Joint venture
C. Acquisition
D. Internal function
(from Module 8 and section A)
6. Which of the following warehousing modes facilitates the rapid flow of goods through the
supply chain and can be an effective technique for reducing inventory levels?
A. Cross-docking
B. Full pallet shipments
C. Dispatching
D. E-fulfillmen
(from Module 7 Topic 3 / and or section A))

7. 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 warehouse?
A. Distribution requirements planning (DRP)
B. Fixed order quantity/variable cycle
C. Periodic review
D. Kanban
(from Module 6 Topic 1 / and section B))

8. A trucking company picks up a shipment and takes it to a terminal where it is consolidated

with other shipments going to the same city. This trucking company is most likely a?
A. Truckload (TL) carrier
B. Milk run provider
C. Less-than-truckload (LTL) carrier
D. Private fleet carrier
Module 8, Section B Topic 3

9. Which of the following measures of Forecast error is calculated by dividing the cumulative
sum of the forecast errors by the mean absolute deviation (MAD)?
A. Tracking signal
B. Mean absolute percent error (MAPE)
C. Absolute percent of error (APE)
D. Bias
(from Module 4 Topic 2 / and section A)
10. Which of the following order characteristics would make increased levels of inventory
necessary?
A. Speed
B. Variability
C. Cost
D. Delivery
(from Module 6 Section A, Topic 1
11. Which of the following desired results best describes why a company would seek to use
unitized loads?
 A. Enhanced ability to rapidly unload and release inbound transportation equipment
B. Increased use of lift trucks to move products from the vehicle to the dock
C. Enhanced ability rapidly upload and release outbound transportation equipment
D. Increased opportunities to group products into unit loads using pallets
(from Module 5 Section B , Topic 1)

12. Which of the following desired results best describes why a company would eek to use
only unitized loads?
A. Enhanced ability to rapidly unload and release inbound transportation equipment
B. Increased use of lift trucks to move products from the vehicle to the dock
C. Enhance ability rapidly unload and release outbound transportation equipment
D. Increased opportunities to group products into unit loads using pallets
(from Module 5 Section B , Topic 1)

13. Which of the following methods of payment involves complete trust in the importer given
that the exporter ships the merchandise without any guarantee of payment by the
importer?
A. Open Account
B. Cash in advance
C. Factoring
D. Letter of credit (L/C)
(from Module 9 Topic 2 / and section D))

14. By international convention, each vessel engaged in international trade would typically.
A. Be insured by the world trade organization
B. Fly the flag of the country in which the cargo is registered
C. Fly the flag of the country in which the vessel is registered
D. Be Registered in the country where the cargo is being shipped
(Module 9, Section A, Topic 2)

15. An organization that specializes in putting international suppliers in touch with potential
buyers is an
A. Export brokerage
B. Import brokerage
C. Import management company
D. export management company
Module 9, Section A, Topic 2

16. Which of the following outcomes of warehouse operations is the most critical in designing
a warehouse?
 A. Optimizing product flow
B. Minimizing warehousing cost
C. Increasing inventory counting
D. Maximizing automation
(from Module 7) Section A, Topic 1

17. The international commercial document that serves as a quote-to-obtain a letter of credit
(L/C) or an import license is called a(n)
A. Commercial invoice
B. Pro forma invoice
C. export license
D. Consular invoice
(from Module 9) Section C, Topic 2

18. In an effort to increase their customer service levels and reduce order cycle time, a
company is considering incorporating two additional warehouses to their overall
operations. As a result, which of the following statements best reflects the cost impact of
the additional warehouses?
A. Lower inventory costs and higher facility costs
B. Higher inventory costs and lower facility costs
C. Higher inventory costs and higher inbound transportations costs
D. Lower inventory costs and lower inbound transportation costs
(from Module 7 Section C, Topic 4
19. A company wants to minimize tariff costs while avoiding the need to file for duty
drawback. Which of the following practices would best achieve this achieve this objective?
A. Adopt customs trade partnerships against terrorism (C-TPAT) rules
B. Use foreign/free trade zones (FTZs)
C. Use an international third-party logistics (3PL) provider
D. Ship by free on board (FOB) terms
(from Module 9) Section D, Topic 1
20. An agricultural corporation must receive permission from the Country X government to
export rice to Country Y because Country Y has an import quota Country X’s rice. The
document used to provide this permission is called.
A. Merchandise Visa
B. Duty drawback
C. Merchandise duty
D. Customs bond
(from Module 9) Section B, topic 1
21. Which of the following sets of elements are the major components of inventory carrying
costs?
A. Capital, Storage space, inventory service, transportation
 B. Storage space, inventory service, inventory risk, transportation
C. Capital, storage space, inventory service, inventory risk
D. Capital, Storage space, Inventory service, distribution
(from Module 1) Section A, Topic 2
22. An organization encourages proactive internal design efforts and collaboration with supply
chain partners in order to consume less raw materials. This business reflects which of the
following dimensions of sustainability?
A. Education
B. Ethics
C. Economics
D. Environmental
(from Module 3, Section A, Topic 1
23. Pre transaction components of customer service includes organizational structure, order
size constraints, system flexibility, Transaction components of customer service includes
organizational structure, order size constraints, system flexibility, and
A. Inventory availability
B. Method ordering
C. Availability
Module 5, Section A, Topic 1
24. An inventory item is contributing low value to profit but has a high negative impact to the
business. When it is not available. The best strategy to manage this item is to
A. Keep high levels of safety stock in multiple locations
B. Keep low levels of inventory in multiple locations
C. Stock this item in one location
D. Maintain high levels of safety stock
E. (from Module 4, Section A, Topic 2
25. Which of the following characteristics define a firm’s most likely network configuration,
given that low inventory carrying cost and a constant level of high customer service exists?
A. The network will most likely have multiple warehouses and slower modes of
transportation
B. The network will most likely have fewer warehouses and slower modes of
transportation
C. The network will most likely have fewer warehouses and faster modes of
transportation
(from Module 8) Section B, Topic 5

26. A general rule of transportation and logistics is the

A. Larger a freight shipment, and the longer the distance it is transported, the lower the
transportation cost per unit
 B. Smaller a freight shipment, and the longer the distance it is transported, the lower
the transportation cost per unit
C. Larger a fright shipment, and the shorter the distance it is transported, the lower the
transportation cost per unit
D. Smaller a fright shipment, and the shorter the distance it is transported, the lower
the transportation cost per unit
(from Module 8) Section G, Topic 4

27. Compared to centralized distribution network strategy, an organization using a

decentralized distribution network strategy, an organization using a decentralized
distribution network strategy can usually expect
A. Lower cost of lost sales and higher inventory cost
B. Higher cost of lost sales and higher inventory cost
C. Lower cost of transportation and lower warehousing cost
D. Higher cost of transportation and lower warehousing cost
(from Module 1, Section D, Topic 1
28A. Which of the following categories is a weakness of the rail system?
A. Safety records
B. Inflexible infrastructures
C. Effects of the weather
D. Routes from city centers
(from Module 8) Section C, Topic 6

28. Which of the following modes of transportation is typically associated with detention charges?
A. Rail
B. Water
C. Pipeline
D. Truck
(from Module 8) Section H, Topic 3

29. A company’s distribution center (DC) receives material from a number of sources and combines
them into exact quantities for a specific destination. Which of the following functions is the
distribution center providing?
A. Cross-docking
B. Consolidation
C. Breaking bulk
D. Integration
(from Module 7) (Section A, Topic 1
30. A supply chain manager would like to guard against potential shortage in their company’s
manufacturing capacity. Which of the following areas of supply risk should the manager pay most
attention to?
 A. Technical
B. Demand
C. Process
D. Financial
Module 1, Section D, Topic 3

31. Which of the following factors would be considered of strategic importance to a firm’s logistical
function?
A. A firm operates in a competitive oligopoly
B. Total of production
C. Production lead time
D. Order cycle time
(from Module 9, Section A, topic 1

32. In addition to order Placement and ordering processing, which of the following steps are part of
the order management process?
A. Oder preparation, loading, and ordering picking
B. Order preparation, loading, and order delivery
C. Order transit time an order returns
D. Order transit time and customer receiving
(from Module 5) Section B, Topic 1

33. Which of the following attributes best represents how an organization regards the
relationship between the cost of lost sales and inventory represents how an organization
regards the relationship between the cost of lost sales and inventory costs?
A. Willingness to spend increasing amounts on inventory to decrease lost sales at a
greater rate
B. Willingness to spend increasing amounts on inventory but expect only minor
changes lost sales
C. Unwillingness to spend increasing amounts on inventory because they see no
correlation between inventory costs, and they cost of lost sales
D. Unwillingness to spend increasing amounts on inventory even though they
understand that an Inverse relationship exists between inventory costs and the cost
of lost sales
(Module? Page Number / and section?)

34. Higher throughput operations enable private warehouses to

A. Spread out variable costs over large output volumes
 B. Spread out fixed costs over large output volumes
C. Allocate total unit costs on the basis of traffic volume
D. Accomplish better facility utilization with declining overheads
(from Module 7) section A, Topic, 2

35. A corporation’s sales forecast has been consistently overstated in the past 6 months.
Which of the following measures of forecast error does the corporation need to review to
correct the situation?
A. Mean absolute percent error (MAPE)
B. Tracking Signal
C. Mean absolute deviation (MAD)
D. Bias
(from Module 4 section A, Topic, 2

36. A company would like to eliminate unnecessary returns and/or minimize handling. It
designs a process to check and screen merchandise at the entry point into the
organization. This is an example of
A. Defect reduction
B. Avoidance
C. Gatekeeping
D. Asset recovery
(from Module 3) (Section B, Topic 1

37. Which of the following statement best describes why a firm would consider Using a third-party
logistics (3PL) provider to improve asset productivity?
A. 3PLs have better control of supply chain functions
B. 3PLs are experts on issues related to security of shipments
C. 3PLs can bolster firm’s internal capability
D. 3PLs are better at handling finished goods inventory
(from Module 8) Section A, Topic 3

38. Which of the following measures would a company use in attempting to improve its customer
service dimension of dependability?
A. Order cycle time
B. Inquiry response time
C. On-time delivery
D. Order agility
(from Module 5) Section A, Topic 4

39. A company finds itself constantly expediting its customer’s retail store deliveries in order to
prevent stock-outs. The best solution to this problem is to
A. Carry additional inventory to satisfy customers demand
 B. Balance the supply of inventory with the demand
C. Minimize the inventory risk of product obsolescence
D. Increase inventory turns to the highest possible value
Module 6, Section A Topic 2

40. 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
(from Module 4), Section A, Topic 1

41. 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?
A. Incentives rates
B. Any-quantity rates
C. Freight all kind (FAK) rates
D. Per-car and per-truckload rates
(from Module 8 Section G, Topic 4

42. From a strategic customer relationship management (CRM) perspective, a company should strive
to
A. Not refuse to do business with a customer
B. Provide customer intimacy to all customers
C. Realize that the same approach may be inappropriate for all customers
D. Realize that all customers desire close relationships with the company
(from Module 5), section A, Topic 2

43. A computer manufacturer has a single distribution center (DC) that ships personal computers to
the USA, Brazil, and Australia. The computer power supplies are added at the distribution center.
This kitting process is an example of:
A. Globalization
B. Postponement
C. Distribution requirements planning (DRP)
D. Final assembly schedule (FAS)
(from Module 1), section C, Topic 3

44. An Ocean carrier’s goal of maximizing total revenue of all the entire ship by offering very
competitive rates that cover their variable costs and then increasing rates, according to what the
traffic will bear is referred to as
A. Any-quantity service rate
B. Value of service rate
 C. Limited service rate
D. Incentive rate
(from Module 8), Section E, Topic 5

45. 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. Reduce total logistics cost
C. Has no impact on total logistics costs
D. Only affects service levels, not costs
Module 2, Section A, Topic 7

46. 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
Module 1, Section D, Topic 4

47. The manager of a manufacturing company are considering using metrics that will lead to improved
internal service performance. Which of the following metrics is the company likely to choose?
A. Perfect order
B. On-time delivery
C. Invoice accuracy
D. Line item fill ration
Module 5, Section B Topic 4

48. Which of the following statements best illustrates the logistics value propositions?
A. It is based on cost minimization or revenue maximization
B. It primarily involves transportation, planning, and execution
C. It integrates operational components to minimize total cost and maximize revenue
D. It includes procurement, manufacturing, and facility network design
Module 1, Section C Topic 2

49. 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
Module 7, Section D Topic 4
50. A company wishes to ship large quantities via ocean freight utilizing the entire vessel capacity. The
most appropriate contract of carriage to use is a
A. Bill of landing (B/L)
B. Wet lease
C. Charter party
D. Letter of credit
Module 8, Section E Topic 3

51. Excluding cost, which of the following sets of criteria describes the primary drivers for
transportation mode selection?
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
Module 8, Section A Topic 5

52. One characteristic, that could make it challenging for a foreign company to penetrate the united
states (US) market is that the US often has
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
Module 9, Section E Topic 3

53. A logistics manager is asked to perform a total cost analysis for the organization. Which of
the following trade-offs is critical to consider?
A. Inventory carrying costs VS production costs
B. Distribution costs VS order processing costs
C. Transportation cost VS inventory carrying costs
D. Landed costs VS production costs
Module 1, Section A Topic 2

54. Moving to a decentralized inventory model creates a conflict with this risk mitigations
strategy
A. Risk response plan
B. Obsolescence reduction
C. Risk pooling
D. Outsourcing
Module 2, Section B Topic 1
55. A carrier receives damaged goods. What actions best describes what the carrier should do
so that it is not liable for the damages?
A. Rewrite the bill of landing (B/L)
B. Make an exception note on B/L from clean to uniform
C. Make an exception note on B/L from clean to soiled
D. Reject the B/L
Module 9, Section C Topic 5
Which two modes of transportation own and maintain their own network and
terminals?
A. Air and motor carrier
B. Ocean and rail
C. Motor carrier and ocean
D. Rail and pipeline
Module 8, Section E Topic 4

56. A third-party logistics (3PL) provider is planning an expansion of its transportation-based

services. Which of the following services is the 3PL likely to offer as part of this expansion?
A. Pool distribution
B. Inventory management
C. Cross-docking
D. Customs brokerage
Module 8, Section A Topic 3

57. Which of the following operations involve goods that flow from receiving to shipping with
minimum interim sorting eliminating storage and order picking?
A. Spot-stocking
B. Cross-docking
C. Just in time (JIT)
D. Flow through
Module 8, Section A Topic 3
58. If a firm desire to upgrade its current logistics performance measurement system to
incorporate comprehensive financial and non-financial metrics, they should implement
A. An activity-based costing (ABC) system
B. An advanced planning system (APS
C. A balanced scorecard
D. The supply chain Operations reference (SCOR) model
Module 1, Section E Topic 1
59. An organization can purchase equipment for $450,000 in order to make an item for $20
per unit. A supplier can produce the same item for $25. If the item will sell for $35 per
unit. What is the break even point for the item?
A. 18,000 units
B. 30,000 units
C. 45,000 units
D. 90,000 units
450000 450000
= =30000
35−20 15
Module 1, Section C Topic 3

60. Which of the following outcomes is most likely to occur if safety stock is moved from
multiple warehouses to a centralized warehouse?
A. Dependent demand will increase
B. Customer service levels will increase
C. The cost of less-than-truckload (LTL) shipments will decrease
D. The aggregate cost of safety stock will decrease
Module 7, Section A Topic 1

61. A service organization is planning to enter into a foreign market and is willing to share its
intangible assets. These assets include process expertise, training, and methods of
operations. Which of the following entry methods is most suitable for this organization?
A. Licensing
B. Joint venture
C. Partnering
D. Franchising
Module 8, Section A Topic 3

62. Net advantages gained by the sharing of common locations by similar enterprises is based
on which of the following terms?
A. Agglomeration
B. Lowest cost
C. Differentiation
D. Free market
Module 4, Section A, Topic 1
63. A trucking company purchased a tractor-trailer for $150,000 to support its short-haul
business. The tractor-trailer will be in service for 5 years before it will be sold at $55,000.
 With annual fuel costs estimated at $ 12,000. What is the annual depreciation for this
vehicle?
A. $7,000
B. $11,000
C. $19,000
D. $30,000
150000−55000=95000
95000
=19000
5
64. A manager would like to improve labor productivity by minimizing travel time in the
warehouse. Which of the following picking methods would best enable the manager to
achieve this objective?
A. Wave picking
B. Zone picking
C. Order picking
D. Batch picking
Module 7, Section B Topic 3
65. A transportation manager is considering transportation modes for moving two weekly
39,000 lbs. Shipments between two domestic locations 800 miles apart. Which of the
following modes of transportation provides the best options for balancing low cost, quick
cycle times, high service levels, and minimal product damage?
A. Rail carrier
B. Truckload (TL) carrier
C. Less-than-truckload (LTL) carrier
D. Intermodal carrier
Module 8, Section F Topic 1
66. If a firm is concerned with high duty rates, on which of the following criteria should it
focus?
A. Type of goods imported and their value
B. Type of goods imported and their cost
C. Type of goods exported and their value
Module 9, Section B Topic 4
67. Slotting criteria that firms can use to group inventory in a warehouse include product demand and
A. Cubic dimension
B. Customer segmentation
C. Stock keeping unit (SKU) colors
D. Layout strategy
Module 7, Section C Topic 1

68. A corporation is redesigning its warehouse and has decided to use a rack system what allows each
Level to be accessed individually by placing pallets on wheeled frames. The rack system that best
meet this criteria is
 A. Flow-through
B. Push-back
C. Drive-in
D. Double-deep
Module 7, Section D Topic 4
69. Given the data: calculate the picking efficiency for a team that picked 8,700 lines today
Number of shifts: 2
Numbers of hours: 7
Total hours per shift: 8
Number of pickers per shift: 6
Standard lines per picker per hour: 100
A. 84%
B. 90.6%
C. 96.6%
D. 103.6%
(Module 7, Section C Topic 1
Module 5, Section B Topic 1
70. Which incoterm applies only to ocean transportation where the exporter is responsible to bring
the goods to the port?
A. Ex works
B. Free alongside ship (FAS)
C. Free on board (FOB)
D. Delivered at place
Module 9, Section D Topic 1

71. 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 shipments during this period?
A. Open
B. Special cargo
C. All-risk
D. Warehouse to warehouse
Module 8, Section G, Topic 1

72. An American company that ships bulk product manufactured in Asia and sold in Europe
may consider which of the following intermodal practices to help minimize total
transportation costs
A. Rail bridge
B. Last mile delivery
C. Landway
D. Land bridge
Module 8, Section C Topic 1
73. A company is considering implementing collaborative planning, forecasting, and
replenishment (CPFR). Which of the following statements best reflects one of the
objectives of (CPFR)
A. It represents a sequence of business processes between consumers and retailers
B. It replaces traditional forecasting methods with a shared single forecast among
trading partners
C. It represents a sequence of business processes within the manufacturing
environment
D. It replaces traditional inventory management procedures with a vendor managed
inventory (VMI) system
Module 1, Section D Topic 2

74. A company that utilizes barges as a major mode of transportation would typically navigate
in
A. Global man time routes
B. Land bridges
C. Inland waterways
D. Intermodal transportations
Module 8, Section A Topic 5

75. Which of the following strategies would a logistics manager most likely choose in order to
reduce transportation cost?
A. Outsourcing
B. Consolidating shipments
C. Engaging in a third-party logistics (3PL) partnership
D. Relying on multiple shipments
(Module 1, Section C Topic 3

76. In a supply chain management context, the role logistics in supporting product
promotions is to
A. Track promotional spending to verify the return on investment (ROI)
B. Manage the forecast to adjust seasonal demand from the original forecast
C. Have product in the correct places in the supply chain to fulfill demand
D. Have enough raw materials in stock to quickly respond to increased manufacturing
Module 1, Section B Topic 1

77. Procurement professionals are focused on the total cost of ownership (TCO) in their
vendor selection strategies. This implies that
 A. Procurement is now increasingly charged with pushing back inventory to vendors
B. There is increased consideration of trade-offs among purchase price, quality, and
vendor capability
C. Procurement is decreasing its emphasis on the importance of vendor certification
audit program
D. There is increased emphasis on procuring at the lowest purchase price possible
Module 1, Section C Topic 3

78. Locations X has monthly fixed costs of $100,000 and per-unit variable costs of $10.
Location Y has monthly fixed costs of $150,000 and per-unit variable costs of $9. At what
volume would these locations have equal total costs?
A. 13,157
B. 19,000
C. 50,000
D. 250,000
Let the quantity be x
10x+100000=9x+150000
10x-9x=150000-100000
X=50000
Module 8, Section G Topic 4

79. A corporation is projecting annual sales at 35 million, cost of goods sold (COGS) at $25
million, and administrative expenses at $ 3 million. In order to meet its corporate
inventory turns goal of 5.0, their inventory level must average
A. $4.4 million
B. $5 million
C. $7 million
D. $7.6 million
Inventory turns= COGS/ Inventory
5=25/x
X=5
Module 6, Section B Topic 5
80. Which of the following components make up the fuel surcharge?
A. Fuel peg/base, index, and ratio
B. Fuel price, carrier efficiency, and index
C. Fuel increase, negotiated rate, and carrier efficiency
D. Fuel peg/base, negotiated rate, and carrier efficiency
Module 8, Section G Topic 4

81. Which of the following attributes is the primary focus of customer relationship
management (CRM)?
A. Every customer is equally valuable in a competitive business climate
B. All customer segments value the same type of supplier offerings
C. Not all customers are equally profitable for an organization
D. A small segment of customers compromises most of the demand issues for most
companies
Module 1, Section B Topic 1

82. A logistics manager has received a lot of customers complaints concerning damaged
products. This represents which of the following customers service dimensions?
A. Time
B. Dependability
C. Communications
D. Convenience
Module 3, Section B Topic 1

83. A document that serves as a contract, a receipt, and a certificate of title in an international
transaction is known as a
A. Certificate of origin
B. Manifest
C. Packing list
D. Bill of landing (B/L)
Module 9, Section C Topic 5

84. A logistics service provider has an average on-time delivery of 30%, average damage free
delivery of 30%, and average correct documentation of 305. Which of the following values
represents the probability that the next delivery would be on-time, damage free, and with
correct documentation?
A. 0%
 B. 3%
C. 30%
D. 90%
Average= (30%+30%+30%)/3=90%/3=30%
Module 1, Section B Topic 1

85. Major retailers place pressure on a manufacturer of liquid laundry products made with
water to reduce the amount of water content by half, While the result will bring savings in
almost every area, where should the manufacturer focus this green initiative
improvement effort?
A. Material handling
B. Packaging
C. Transportation made selection
D. Product design
Module 3, Section A Topic 2

86. 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
Module 9, Section D Topic 1

87. Random stocking can be greatly improved through the use of a(n)
A. Advanced planning system (APS)
B. Inventory management system (IMS)
C. Transportation management system (TMS)
D. Warehouse management system (WMS)
Module 4, Section D Topic 2

88. 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?
A. Systems concepts and analysis
B. Total cost of ownership (TCO)
C. Lean six sigma concepts
D. Network inventory cost minimization
 Module 1, Section B, Topic 1

89. A logistics 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 best represents the potential trade-offs of
implementing this change?
A. Higher labor costs, improved customer services, 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 cost, and no change in
customer service
Module 7, Section F, Topic 1

90. Which of the following inventory cost elements is the most difficult to quantify?
A. Unit cost
B. Cost of reordering
C. Carrying cost
D. Shortage cost
Module 6, Section A Topic 3

91. A company desires to provide superior relation. Which of the following metrics would best
help the company achieve this position?
A. Stockout frequency
B. Orders shipped complete
C. Order consistency
D. Days of inventory

92. When a company decides not to purchase insurance to cover a risk, it is pursuing what
type of risk strategy?
A. Retention
B. Transfer
C. Mixed
D. Mitigation
Module 1, Section C, Topic 3
93. A carrier company has not received payment from a key international customer for a
shipment completed 90 days ago. Its payment terms are 2/10 net 30. International
transportation, the risk of this non-payment is referred to as
A. Exposure
B. Commercial risk
C. Country risk
D. Factoring
Module 9, Section D, Topic 1

94. Consignment inventory requires that’s manufactures

A. Deliver their products to the consumer and payment from consumes 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
require to refill stock level
D. Stock their products on retail stores shelves and wait for payment until consumers
purchase the product
Module 6, Section B, Topic 2

95. Given the data below, what would be the new reorder point (ROP) if the lead time where
reduced by 20%?
Daily demand = 20 units
Reorder lead time = 10 days
Safety stock =15 units
A. 160 units
B. 175 units
C. 195 units
D. 215 units
100%-20%=80%*10=8
(20*8)+15=160+15=175
Module 6, Section B Topic 1

96. In warehouse operations, picking process occurs:

 A. When customers orders for product are ready to be shipped or to be replenish a
forward case or unit pick area
B. Immediately after a product is stored in a designated location in order to be shipped
to the customer
C. When a Kanban signal arrives to replenish material in the workshop
D. When a customer order needs to be replaced by a new product due to engineering
changes
Module 7, Section B, Topic 3

97. A transportation manager is interested in selecting the optimal mode of transportation

based on 3 key criteria speed, availability, and dependability, which of the following
modes best meets the criteria?
A. Truck and rail
B. Truck and air
C. Air and rail
D. Air and ocean
Module 8, Section G, Topic 3
100. A network based organization that pioneered the world’s most widely used sustainability
framework is known as the
A. International Environmental Association
B. Global sustainability association
C. United nations global compact
D. Global reporting initiative
Module 3, Section A Topic 1
101. In 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?
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
Module 2, Section B, Topic 1

102. 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 customers shipments
 Module 9, Section D Topic 1
102.Contract warehousing refers to a(n):
A. enterprise that owns the merchandise handled and stored in the facility
B. Long term business arrangement that provides unique or tailored logistics services for a
limited number of customers
C. Independent business offering a range of for-hire services such as storage, handling and
transportation
D. Logistics provider for specific requests coming from the customer and is regulated by a signed
contract
Module 7, Section A, Topic 2

103.Random stocking can be greatly improved through the use of a(n)

A. Advanced planning system (APS)
B. Inventory management system (IMS)
C. Transportation management system (TMS)
D. Warehouse management system (WMS)
Module 4, Section D Topic 2
104. A non-profit transportation membership cooperative that arranges for the domestic or
international shipment of members’ cargo over any mode of transportation is known as a(n)
A. Freight bureau
B. Freight broker association
C. Shippers associations
D. Integrated service provider
Module 8, Section A, Topic 1

105. A company receives automobile parts from global manufactures into its distribution
center (DC) before redeploying the parts to local retail outlets. Which of the following
documents can be used to proactively plan for the redeployment of the parts?
A. Bill of landing (B/L)
B. Advance ship notice (ASN)
C. Routing guide
D. Shipment manifest
Module 9, Section C Topic 5
106. Airfreight companies often use dimensional weight to cost out shipments because of
which of the following attributes of the product?
A. Density
B. Height
C. Weight
D. Value
Module 8, Section D Topic 4
107. A transportation manager for a wine manufacturer needs to move 80,000 pounds of
bottled wine across 700 miles. While transportation cost is important, the manager feel that
reliability and product security are the two most important shipping criteria. Based on this
criteria, the best mode to ship this product is:
A. Rail
B. Air
C. Motor
D. intermodal
Module 9, Section B, Topic 3

108. Which of the following techniques is used by cross-docking to reduce material handling
and inventory levels?
A. Creating a grouping of inventory at a precise time and location
B. Combining inventory from a single origin into a dedicated assortment to meet the needs of
operations
C. Supporting manufacturing operations in managing work in process (WIP) across the
workshop
D. Combining inventory from multiple origins into a customized assortment to meet the needs
of a specific customer
Module 6, Section B, Topic 2

109. To increase profitability by lowering inventory carrying cost, a company should focus on
what costs?
A. Warranty
B. Storage space
C. Transportation
D. Technology
Module 5, Section B, Topic 2

110. An organization wanting to improve the management of resources and exceptions across
the supply chain should focus on enhancing
A. Supply chain visibility
B. Simultaneous Consideration of resources
C. Resource utilization
D overall asset utilization
Module 1, Section B, Topic 1

111. The first step a company would typically take when designing and implementing a cycle
count program is to
A. Segment all available inventory by velocity, value, or other criteria.
B. Stop operations in order to conduct a physical inventory
C. Reconcile discrepancies within the warehouse management system (WMS)
D. hire an outside company to conduct the cycle count program
Module 6, Section B, Topic 4

112. A logistics manager is developing a supply chain risk management plan incorporating
contingency plans for alternatives to transportation failures. Which of the following factors
best represents this approach?
A. avoidance
B. Acceptance
C. Mitigation
D. Redundancy
Module 1, Section A, Topic 2

113. A pet food company is seeking a high-volume supplier of corn, the main ingredients in its
new meat-free dog food. Due to the growth in the global demand or corn, the company needs
to develop a long-term relationship with a reliable producer. The key to this success
A. maintains the power in the relationship
B. has a written contract
C. Chooses a compatible partner
D. establishes the relationship as a joint venture
Module 4, Section G, Topic 1

114. To prevent the importing of certain luxury goods so that a country can use its hard
currency on essential goods, governments can refuse to issue a(n)
A. General average
B. Specific license
C. Explicit license
D. Import license
Module 9, Section B, Topic 4

115. A process in which printer and copier cartridges are manufactured, sold by retailers,
consumed by customers, and returned to the manufacturer for reuse is an example of a(n)
A. eco-system
B. reverse logistics system
C. environmental initiative
D. closed loop supply chain
Module 3, Section B, Topic 3

116. An express authorization to bring a foreign product into a country is called a(n)
A. export license
B. specific license
C. explicit license
D. import license
Module 9, Section B, Topic 4

117. What may be the cause of the value of inventory is greater than the value of the net
working capital?
A. Receivables are too high
B. Cost of goods sold (COGS) is too high
C. inventory is too high
D. high level of obsolescence
Module 6, Section A, Topic 3

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

A. registration license
B. import quota
C. cargo preference
D. manufacturing location
Module 9, Section B, Topic 4
119. 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
Module 7, Section A, Topic 1
120. The most important reason for an organization to consider a logistics network redesign is
the change in
A. Transportation rates
B. Raw material costs
C. labor costs or availability
D. the location of demand
Module 2, Section B, Topic 1

121. Which of the following customer segmentation dimensions reveals the most critical
value proposition available to the customer?
A. Behavior
B. Needs
C. Service
D. Probability
Module 1, Section C, Topic 2

122. Which of the following terms refers to an integrated approach of simultaneously selling
to consumers through multiple distribution channels?
A. Omni-channel
B. Multi-channel
C. Business-to-consumer (B2C)
D. E-Commerce
Module 8, Section A, Topic 3

123. Which of the following port-related issues constitutes the greatest challenge when
considering the use of post-panamax container ships?
A. Number of ships available
B. Available workforce
C. Railway connections
D. Bridge clearance
Module 8, Section E, Topic 3

124. Which of the following carrier pricing strategies is most often used in an industry where
revenues are stagnant or declining?
A. market share pricing
B. penetration price strategy
C. Skimming price strategy
D. social responsibility pricing
Module 8, Section A, Topic 1

125. A transportation manager is making a decision to change from common carrier to private
carrier. Three key advantages of private carrier are
A. increased back-haul efficiency, lower transit times, and flexibility
B. lower freight claims, lower inventory levels, and lower fixed costs
C. lower transit times, flexibility, and improved customer service
D. Increased driver turnover, lower transit times, and improved customer service
Module 8, Section A, Topic 4

126. ill cargo and prefers not to utilize specialized lifting equipment should consider which of
the following type of shipping vessels?
A. Handysize
B. Roll-on/roll-off
C. Suez-Max
D. Trot-on/Trot-off
Module 8, Section E, Topic 3

127. 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
Module 9, Section C, Topic 4

128. Which of the following statements describes how having a centralized return center
enables the reduction of time needed to determine the disposition of returned products?
A. Enabling small delivery of return items on a just in time (JIT) basis at the right location
B Enabling efficiency of the personnel in making quick decisions through specialization
C. Reducing the transportation times by allowing for returns to only one location
D. Reducing the wait time by having a detailed information system to make decisions faster
Module 4, Section A, Topic 1

129. Which of the following groups was formed for the purpose of eliminating the trade
barriers among its members?
A United nations (UN)
B. European Union (EU)
C. Organization of petroleum exporting countries (OPEC)
D. North Atlantic treaty organization (NATO)
Module 9, Section B, Topic 4

130. Which of the following operations is normally within the logistics function of a
manufacturing organization?
A. production management
B. Financial management
C. Warehouse management
D. Marketing management
Module 4, Section G, Topic 2

131. A company sends products back upstream for repair, reuse, scrap, or salvage. The process
that nest facilities this is known as a
A. Waste recovery system
B. Reverse logistics system
C. Recycling system
D. Closed-loop supply chain
Module 3, Section B, Topic 2

132. A seller wishes to pay for all carriage to a named destination (except for costs related to
import clearance) and assume all risks prior that the goods are ready for unloading by the
buyer. Which of the following incoterms is being applied?
A. DAT- delivered at terminal
B. DAP – delivered at place
C. DDP – delivered duty paid
D. CPT – carriage paid to
Module 9, Section D, Topic 1

133. A company desires to improve its cash flow situation by postponing its customs duties
payments until the last possible point in the supply chain. The company should consider using
which type of warehouse?
A. Bonded
B. Contract
C. Third-party
D. Government
Module 7, Section A, Topic 2

134. Following international transaction requiring a third-party confirmation, which of the

following documents provides evidence that the merchandise conforms to the description in
the commercial invoice when it left the country of export?
A. Certificate of manufacture
B. Certificate of origin
C. Certificate of compliance
D. Certificate of inspection
Module 9, Section C, Topic 3

135. The key factors in modal determination when comparing the trade-off between cost and
service include
A. distance and load size
B. carrier capacity and distance
C. distance and carrier rates
D. carrier rates and load size
Module 8, Section G, Topic 1

136. A company would like to encourage shippers to partner on sustainability initiatives.

Which of the following rates would best meet this objective?
A. Density
B. Incentive
C. Differential
D. Blanket
Module 8, Section G, Topic 4

137. 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?
A. Letter of credit
B. Open account
C. Sight draft
D. Cash in advance
Module 9, Section D, Topic 2

138. A supply chain manager is developing a strategy to improve their organizations

environmental sustainability and will begin including the triple bottom line (TBL) as a key
performance metric. Which of the following components are included in the TBL?
A. integrated, profitable, and lean
B. Financial, profit-oriented, and social
C. Economic, environmental, and social
D. Supply chain visibility, environmental, and profitable
Module 3, Section A, Topic 1

139. Which of the following statement 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
Module 6, Section B

140. When a logistics manager assigns workers to receive, store, and move goods into and out
of the warehouse, they are managing which of the following activities?
A. physical distribution
B. materials handling
C. production management
D. inventory management
Module 7, Section A, Topic 1

141. A major retailer has informed a product manufacturer that they must take back all of
their dunnage. The manufacturer’s major decision in implementing reverse logistics will most
likely be to
A. manage the process internally or outsource to a third party
B. take back the dunnage or tell the retailer to destroy it all
C. reduce packaging materials to save money but risk more damage
D. increase the selling price to the retailer to cover increased costs
Module 3, Section B, Topic 1

142. 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?
A. Retail consumers and vendors
B. Retailer and its suppliers
C. Retailer and its buyers
D. Retail consumers and retailers
Module 3, Section B, Topic 2

143. In addition to operational performance, which of the following measurement criteria

offer the best options for a manager interested in setting a baseline of key logistical
performance measures?
A. profit margin and service reliability
B. profit margin and customer service
C. inventory availability and service reliability
D. inventory availability and product reliability
Module 1, Section B, Topic 2

144. While designing a transports network, which of the following actions does a manager
need to complete in order to identify the key logistics goals and perform benchmark analysis?
A. Define process steps
B. Conduct a supply chain audit
C. Examine network alternatives
D. Complete a facility location study
Module 1, Section E, Topic 5

145. The allocation of revenues and costs to customer segments or individual customers in
order to estimate segment value is known as
A. Customer relationship management (CRM)
B. Customer profitability analysis
C. Customer service analysis
D. Customer standardization analysis
Module 1, Section B
146. A trucking company has determined that exception rates are best to offer a wine retailer
that ships five truckloads or more of wine from Bordeaux to Paris every Monday. One
example of this type of exception rate is a(n)
A. Commodity rate
B. Freight all kind
C. Cube rate
D. Aggregate tender rate
Module 8, Section G, Topic 4

147. Which of the following facility location techniques is equivalent to break-even point?
A. Weighted-factor rating method
B. Transportation problem model
C. Cost volume analysis
D. Center-of-gravity method
Module 7, Section A, Topic 2
148. Stockout frequency refers to:
A. The probability that a firm will not have inventory available to meet customer orders
B. A single event where a firm will not have inventory available to meet customer orders
C. The cost of sales that a firm will have when insufficient inventory is available to meet customer orders
D. The percentage of days in which inventory necessary to meet customer orders is missing

149. Which component of in-transit inventory carrying costs may vary considerably and
requires special analysis based on carrier contract terms?
A. Obsolescence
B. Capital
C. Taxes
D. Insurance Premiums
Module 8, Section B, Topic 5

150. Assuming the same customer service levels are desired, the concept of risk pooling
suggests which of the following impacts?
A. A decrease in safety stock and average inventory levels remain the same
B. An increased in safety stock and average inventory levels decrease
C. A decrease in safety stock and a decrease in average inventory levels
D. Module 4, Section F Topic 2
151. Location X has monthly fixed costs of $100,000 and per-unit variable costs of $10.
Location Y has monthly fixed costs of $150,000 and per-unit variable costs of $9. At what
volume would these locations have equal total costs?
A. 13,157
B. 19,000
C. 50,000
D. 250,000
Let the quantity be x
10x+100000=9x+150000
10x-9x=150000-100000
X=50000
Module 8, Section G Topic 4
152. After service disruption, which of the following sets of items needs to be included in a
service recovery plan?
A. Measuring the cost of poor service, anticipating the needs for recovery, acting fast, and
empowering and training employees
B. Maintaining adequate inventories, engaging freight companies for expediated services, and
encouraging customers to carry more buffer stock
C. Having emergency staffing plans, empowering employees, acting fast, and carrying additional
inventories, and measuring the cost of poor service
D. Anticipating the needs for recovery, acting fast, training employees, and encouraging
customers to carry more buffer stock.
Module 5, Section A, Topic 4

153. The term used to describe the changes and fees applied when rail freight cars and ships
are held beyond the agreed upon contract terms is known as
A. Detention
B. Claims
C. Accessorial charges
D. Demurrage
Module 8, Section G, Topic 4

154. The airline industry’s use of standardized unit load devices represents an example of the
implementation of which of the following unitization devices?
A. Flexible devices
B. Rigid devices
C. Master carton devices
D. Non-returnable devices
Module 7, Section F, Topic 2

155. Which of the following statements an a primary objective of most warehouses?

A. Provide additional storage to excess inventory and avoid its disposal
B. Ensure that inventory levels are in accordance with the company's financial target
C. Accurately reflect the company's working capital status
D. Facilitate the movement of goods through the supply chain to the end consumer
(from Module 7, section A)
156. China’s restriction of the export of rare earth elements triggers the use of a(n):
A. Export quota
B. Embargo
C. Export license
D. Certificate of origin
Module 9, Section B, Topic 2

157. Which of the following would be considered a value-added role of forward logistics?
A. Production of a consumer good
B. Break-Bulk of consumer good
C. Recycling a consumer good
D. Selling a distressed good
(from Module 1, Section D, Topic 1)
158. Which of the following technologies facilitates the integration of the warehouse
functions with inbound and outbound transportation equipment?
A. Warehouse management system (wms)
B. Transportation management system (tms)
C. Yard management system (yms)
D. Advanced planning system (aps)
(from Module 7, section E, Topic 2)

159. Which of the following factors represents the most critical considerations in
transportation mode selection?
A. Capacity, transit time, and reliability
B. Carrier availability, cost, and sustainability
C. Sustainability safety, and carrier performance
D. Cost, tariffs, and seasonality
(from Module 8,Section A, Topic 5)
160. A company that ships self-propelled cargo and prefers not to utilize specialized lifting
equipment should consider which of the following types of
shipping vessels?
A. Handysize
B. Roll-on/roll-off (RORO)
C. Suez-Max
D. Trot-on/trot-off (TOTO)
(from Module 8, Section E, Topic 3)
161. For a logistics company, which of the following types of expenses is an example of a fixed
cost for a vehicle?
A. Insurance
B. Vehicle excise duty
C. Fuel
D. Vehicle road license
Module 2, Section A Topic 6

162.
Item Identification Stock Customer A Order Customer B Order Customer C Order
Quantitv Quantitv Quantitv
339 11 3 6 3
703 9 6 ) 5
173 3 5 11 4

A company has prioritized A, B, and C, filling orders in that sequence. What are the impact to
customer service levels for customers B and C?

A. 100% service levels for B and C

B. Customer B has higher service level
C. Customer C has higher service level
D. Customer B and C have the same service level
(Module 1, Section A

163.
Item Identification Stock Customer A Order Customer B Order Customer C Order
Quantitv Quantitv Quantitv
387 11 3 6 3
941 9 6 ) 5
256 3 5 11 4

A company has prioritized A, B, and C, filling orders in that sequence. What are the impact to
customer service levels for customers B and C?

A. 100% service levels for B and C

B. Customer B has higher service level
C. Customer C has higher service level
D. Customer B and C have the same service level
Module 1, Section A

164. Which of the following order picking processes controls the flow of goods to synchronize
replenishment, picking, packing, marshaling, and dispatch?
A. Pick-to-order
B. Pick-by-line
C. Zone picking
D. Wave picking
Module 7, Section B Topic 3
165. In a reorder point system, the interval between orders is:
A. Constant throughout the planning horizon
B. Unpredictable throughout the planning horizon
C. Dependent on demand rate throughout the planning horizon
D. Determined by the planner throughout the planning horizon
(from Module 5,section B, Topic 4)

166. In addition to declaring the origins of goods, a certificate of origins is used to determine
the:
A. Export declaration
B. Cost of transportation
C. Standard cost
D. Applied tariff
(from Module 9, Section C, Topic 4)
167. Given the data below, calculate the picking efficiency for a team that picked 8,700 lines
today:
-Number of shifts: 2
-Number of hours available: 7
-Total hours per shift: 8
-Number of pickers per shift: 6
-Standard lines per picker per hour: 1000

A. 84%
B. 90.6%
C. 96.6%
D. 103.6%
Available hours is 2*7=14
2*7=14/8=1.75*6*1000=10500
Actual/Expected= 8700/10500*100%=82.8%
Module 1, Section B Topic 3

168. Which of the following items change upon the release of a distribution replenishment
order in a distribution requirement planning (DRP) systems?
A. Schedule receipts
B. Unconsumed forecast
C. Customer open orders
D. Purchasing lead time
(from Module 4, Section E, Topic 5)

169. A retailer creates independence between their shops and their suppliers by building
additional inventory at local distribution centers. This function of inventory is known as:
A. decoupling
B. hedge
C. safety
D. anticipatory
(from Module 6, Section A, Topic 2)

170. An organization wishes to enter the international marketplace but does not wish to own
the good or undertake the complexities of market. Which of the following intermediaries
should the organization employ?
A. Export brokerage company
B. Import brokerage company
C. Export management company (EMC)
D. Export trading company (ETC)
(from Module 2,Section A, Topic 2)

171. A product recall differs from other reverse logistics processes in that:
A. All products must be accounted for and the potential for danger no longer exits
B. Customers return unwanted goods and receive a credit for the value of their returns
C. Environmental waste must be returned and repurposed by the manufacturer
D. Products that are worn or broken are repaired or reprocessed so that the return may
eventually be returned to the market
(from Module 3, Section B)

172. A warehouse manager is performing an ABC segmentation of the products in the

warehouse. Based on the three items shown below, what is the correct warehouse
segmentation for these items from the warehouse manager's perspective?

Product Units sold # Orders per

per month Month
X 10,000 units 10
Y 1,000 units 40
Z 5,000 units 200

A. A = Product X, B = Product Z, C = Product Y

B. A = Product Y, B = Product Z, C = Product X
C. A = Product Z, B = Product Y, C = Product X
D. A = Product Z, B = Product X, C = Product Y
(from Module 7) Section D, Topic 5
Total for Product x=200*5000=1000000
Total for Product y=40*1000=40000
Total for Product z=10*10000=100000
From highest to lowest
173. The world trade Organization (WTO) is primarily concerned with:
A. Creating equal access to trade for all countries
B. Ensuring that developing countries can compete in global markets
C. Providing policies that enhance global trade
D. Facilitating the creation of foreign/free trade zones (FTZ)
(From Module 9, Section B, Topic 1)

174. A company that has developed a multi-channel marketing system has responded to
improving which of the following dimensions of customer service?
A. Time
B. Communication
C. Convenience
D. Dependability
(from Module 5, Section A, Topic 4)

175. Which of the following prerequisites is essential in order to establish an effective

order management system?
A. An ability to reserve inventory and determine a delivery date
B. An ability to understand customer needs
C. An ability to plan and build loads
D. An ability to receive, enter, and validate an order
(from Module 5 Topic3:Stage 1 / and section B)
176. Pre-transaction components of customer service includes organizational structure,
order size constraints, system flexibility, and:
A. Inventory availability
B. Method of ordering
C. Availability of spares
D. Order status information
(from Module 5, Section A, Topic 1)

177. 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?
A. Education
B. Ethics
C. Economics
D. Environmental
(from Module 3, Section A)

178. 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
(from Module 6, Section A, Topic 1)
179. Which of the following transportation documents is created by the carrier and lists the
exact makeup of the cargo, its ownership, its port of origin, and destination and specific
handling instructions?
A. Shipper’s letter of instruction
B. Packing list
C. Manifest
D. Waybill
(from Module 8, Topic 1)

180. A manufacturing company agrees to export tools for a Chinese company using a letter of
credit (L/C). Which of the following entities guarantees the payment for the tools?
A. A bank
B. The Chinese company
C. A credit insurance company
D. A beneficiary
Module 5, Section B, Topic 2

181. A non-profit transportation membership cooperative that arranges for the domestic or
international shipment of members’ cargo over any mode of transportation is known as a(n)
A. Freight bureau
B. Freight broker association
C. Shippers associations
D. Integrated service provider
Module 8, Section A, Topic 1

182. According to the harmonized system classification, codes, the correct classification of an
imported good in generally the responsibility of the
A. Importer
B. Exporter
C. Broker
D. Carrier
Module 8, Section A, Topic 2

183. Which of the following groups of metrics measure service from the customer’s
perspective?
A. Inventory, availability, stockout frequency, fill rate, and order cycle time
B. Inventory, availability, stockout frequency, fill rate, and inbound transportation
C. Order backlog, orders shipped complete, inventory availability, and product defects
D. Order tracking, invoicing accuracy, response time, and order cycle time.
Module 5, Section A, Topic 4
184. Pre transaction components of customer service includes organizational structure, order
size constraints, system flexibility, Transaction components of customer service includes
organizational structure, order size constraints, system flexibility, and
A. Inventory availability
B. Method ordering
C. Availability
Module 5, Section A, Topic 1

185. Which of the following which of the following scenario illustrates how a company uses
reverse logistics to positively impact profit?
A. Returning leftover materials, used product, and packaging waste for disposal
B. Recalling products from the market due to safety concerns
C. Issuing credits to customers for returned goods that no longer function
D. Processing returned goods in order to return products to store shelves quickly
Module 3, Section A, Topic 2

186. Major retailers place pressure on a manufacturer of liquid laundry products made with
water to reduce the amount of water content by half. While the result will bring savings in
almost every area, where should the manufacturing focus this green initiative improvement
effort?
A. Material handling
B. Packaging
C. Transportation mode selection
D. Product designs
Module 3, Section A, Topic 2

187. The standard measurement for intermodal containers is generally measured in

A. twenty-foot equivalent (TEU)
B. forty-foot equivalent unit (FEU)
C. forty-eight foot equivalent unit
D. fifty-three foot equivalent unit
Module 8, Section E, Topic 2

188. The primary purpose of a warehouse layout should be to:

A. reduce warehouse floor area
B. facilitate product flow
C. Increase storage area
D. maximize personal productivity
Module 7, Section C, Topic 1
189. What is the overall performance of a logistics provider with the
following metrics?
ON-TIME DELIVERY 90%

CORRECT SHIPPING LABEL 95%

DAMAGE FREE 87%
ORDER COMPLETELY FILLED 92%

A. 90%
B. 92%
C. 82%
D. 75%
(90%+95%+87%+92%)/4=364/4=91%
Module 6, Section B, Topic 2

190. Which of the following supply chain integrative procedures assesses the repair and
support of products?
A. Products service development launch
B. Supplier relationship collaboration
C. Life cycle support
D. Reverse logistics
Module 4, Section B, Topic 1

191. A trucker adjustment factor is a freight charge for the cost of which of the following
components?
A. Fuel
B. yard movement
C. Currency
Module 8, Section G, Topic 4

192. Which of the following is a speculative risk that an exporter should consider when
deciding the currency to use to complete the transaction with an importer?
A. Exchange rate fluctuation
B. Currency convertibility
C. Translation
D. Government control on import payment
Module 9, Section D, Topic 2

193. Which of the following concepts best describes the reason rapid e-commerce growth is
changing the warehouse landscape?
A. The imitation of qualified material handlers
B. Production of stock keeping units (SKU)
C. Rapid progress in technology offerings
D. Increasing demand for warehouse space
Module 7, Section C, Topic 4

194. A company does not have an appointment schedule and is dealing with capacity at its
dock. Which of the following systems would facilitate the best solution to this problem?
A. Yard management system (YMS)
B. Advance planning system (APS)
C. Transportation management system (TMS)
D. Warehouse management system (WMS)
Module 7, Section A, Topic 5

195. Which of the following statements best describes the primary objective of most
warehouses?
A. Provide additional storage to excess inventory and avoid its disposal
B. Ensure that inventory levels are in accordance with the company's financial target
C. Accurately reflect the company's working capital status
D. Facilitate the movement of goods through the supply chain to the end consumer
Module 7, Section C, Topic 1

196. Which of the following conditions when met, economically justifies the addition of new
warehouse facilities?
A. Cost of warehousing and local delivery is greater
B. Cost of warehousing
C. Cost of warehousing is greater than cost of local delivery
D. Cost of warehousing is less than cost of local delivery
Module 7, Section A, Topic 6

197. Which of the following objectives lean philosophy seek in developing and redesigning
processes?
A. Remove overburden
B. Make more parts
C. Transport rapidly
D. Ship frequently
Module 4, Section D, Topic 2

198. A company is trying to ship a product which weighs 150 pounds with a density of 15.7
pounds per rubric foot. Using the carriers rate schedule below, what is the shipping cost?
 $12 cent per Up to 10 pounds per cubic feet

$8 cent per For 11 to 20 pounds per cubic feet

$6 cent per For 21 pounds per cubic feet and up

A. $8
B. $10
C. $12
D. $18
Module 2, Section B, Topic 1

199. Staffing criteria that forms can use to group inventory in a warehouse include product
demand
A. Cubic dimension
B. Customer
C. Stock keeping
D. layout Strategy
Module 7, Section C, Topic 2

200. Which of the following forecasting methods to identify patterns of repeating demand
over a period of time?
A. Trend
B. Seasonality
C. Experiential smothering
D. Depth
Module 4, Section A, Topic 1

201. Which of the following cost elements are part of the calculations of inventory carrying
costs?
A. Utilities, material handling equipment, and plant maintenance
B. Material handling equipment, plant maintenance, and insurance
C. Utilities, security, and the cost associated with
D. Material handling equipment, production costs, and insurance
Module 6, Section A, Topic 3

202. A product that has seasonal demand is most likely to have which of the following types
of inventory?
A. Transportation
B. Lot size
C. Anticipation
D. Fluctuation
Module 5, Section B, Topic 1

203. Which of the following outcomes is a potential advantage of operating an efficient

reverse logistics process?
A. Provides competitive differentiation
B. Enables visibility throughout the supply chain
C. Improves the product life cycle
D. Reduce transportation costs
Module 3, Section B, Topic 2

204. A company currently has significantly long lead time in determining the disposition of
returned products. Which of the following nonprocedural areas should the company look into
as it performs a root cause analysis?
A. Financial department to see if the sales personnel are reluctant to charge the returns to sales
B. Quality department to see if the process for determining disposition is inefficient
C. Customer service department to see if they are taking a long time to address customer
concerns
D. Material handling department to see if it is taking excessive time to handle defective product
Module 5, Section B, Topic 4

205. An air carrier joining the Customs-Trade Partnership Against Terrorism (C-TPAT) must
meet which of the following requirements?
A. Do business with only preferred counties
B. Have an active international Civil Aviation Organization code
C. Have an active international Air Transportation Association code
D. Be a North American Free Trade Agreement based business
Module 8, Section D, Topic 1

206. A logistics manager is looking for a service provider to take title of his inventory, manage
the export and delivery, and resell the product in a different country. Which of the following
providers best meets this requirement?
A. Freight broker
B. Export trading company (ETC)
C. Export management company (EMC)
D. Freight forwarder
Module 8, Section A, Topic 3

207. Which of the following transportation documents spells out how many containers there
are in a shipment and which merchandise is packaged in each container?
A. Shipper’s letter of instruction
B. Packing list
C. Intermodal bill of landing (B/L)
D. Ocean bill of landing (B/L)
Module 8, Section E Topic 1

208.
Item Identification Stock Customer A Order Customer B Order Customer C Order
Quantity Quantity Quantity
388 11 3 6 3
754 9 6 2 5
155 3 5 11 4

A company has prioritized A, B, and C, filling orders in that sequence. What are the impact to
customer service levels for customers B and C?

A. 100% service levels for B and C

B. Customer B has higher service level
C. Customer C has higher service level
D. Customer B and C have the same service level
Module 1, Section A

209. Based the information provided below, what is the break-even point that would warrant
making the part in-house?
New equipment needed to produce parts in-house $500,000

In-house cost to produce part with new equipment $45

Purchasing price and shipping cost for supplier to produce $55
Expected sales $1,000,000
A. 50,000
B. 100,000
C. 45,000,000
D. $5,000,000
 Sales−¿ cost 1000000−500000 500000
¿ ¿ = = =50000
Outsource−Inhouse 55−45 10
Module 2, Section A, Topic 6

210. Which of the following distribution center (DC) location modeling methods employs a
rule of thumb approach to suggest potential site locations?
A. Center-of-gravity
B. Simulation
C. Map based spatial representation
D. Clustering
Module 7, Section A, Topic 1

211. Which of the following statements regarding information flow within a supply chain best
reflects reality?
A. Backward information flow typically includes advance shipping notices, order status
information, and inventory availability
B. Combining two-way flow of information of timely and accurate information lowers costs and
improves efficiencies.
C. while pipeline inventory visibility is beneficial, it does not contribute to consolidating freight
or merging shipments in transit
D. The bullwhip effect is mitigated less by timely information and more by forecast accuracy
Module 1, Section A, Topic 3

212. A company wishes to improve its sustainability practice through transportation

efficiency. In addition to freight consolidation, which of the following factors will provide the
greatest impact?
A. increase cross-docking opportunities
B. improve material equipment
C. Increase less-than truckload (LTL) shipments
D. improve packaging efficiencies
Module 8, Section B, Topic 3

213. In order to reduce the risk of nonpayment of exporter wants to retain the title to goods
until payment is made. Which of the following drafts, should the exporter request from the
presenting bank?
A. Sight draft
B. Time draft
C. Date draft
D. Exchange draft
Module 9, Section D, Topic 2
214. Which of the following inventory control techniques is designed to identify items in error,
triggered research, identification, and elimination of the cause of errors?
A. Periodic review
B. cycle counting
C. physical inventory
D. Kanban
Module 6, Section B, Topic 4

215.The voluntary initiative was the first of its kind, developed to secure the global supply
chain and to facilitate legitimate cargo and conveyance
A. Authorized economic operator
B. Customs-Trade Partners Against Terrorism (C-TPAT)
C. Partners in protection
D. Secure experts scheme
Module 8, Section D, Topic 1

216. A private warehouse is:

A. Operated by the enterprise that owns the merchandise handled and stored in the facility
B. Operated as an independent business offering a range of for hire services such as storage, handling,
and transportation
C. A long term business arrangement that provides unique or tailored logistics services for limited
number of customers
D. Operated by the firm offering the product and has heavy restrictions for access
Module 7, Section B, Topic 1

217. Which of the following storage options offers the best solutions for storing palletized and
stackable product while minimizing storage costs, maximizing storage utilization, and providing
effective accessibility?
A. Floor stacking
B. Adjustable pallet racking
C. Double-deep racking
D. Gravity feed racking
Module 7, Section D, Topic 4

218. The time needed convert to raw material or inventory purchase to sales revenue is called
A. dead net pricing
B. cash-to-cash cycle
C. free cash spin
D. throughput time
Module 6, Section B, Topic 1

219. Which of the following statements best describes the impact on the total logistics system when
the inbound order management function processes smaller order quantiles on a more frequent basis?
A. higher transportation costs, higher ordering costs, and reductions in inventory investment
B. lower transportation costs, decreased ordering costs, and reductions in inventory investment
C. Higher transportation costs, lower ordering costs, and reductions in inventory investment
D. Lower transportation costs, higher ordering costs, and increases in inventory investment
Module 5, Section B, Topic 1

220. The table below highlights the impact of incremental warehouses to the required safety stock
levels, demonstrating which logistical model?
Warehouse Locations Safety Stock Level
2 141
3 173
4 200

A. Economic order quantity (EOQ)

B. Tapering principle
C. Square-root-rule
D. Inventory buffering
Module 6, Section B, Topic

221. What type of equipment would an air freight company use to maximize the freight
capacity of its fleet?
A. Pallets
B. Containers
C. Combat aircraft
D. Unit load devices
Module 8, Section D, Topic 3

222. Which of the following activities would a firm utilize in developing a comprehensive
customer relationship strategy?
A. Identify the type of relationship that best meets the needs of different customers
B. Focus on product types in order to increase the customer base
C. Drop customers which represents the bottom 20% of profitability to focus on high profit
customer
D. Select a market segment of customers that primary wants a single type of relationship with
suppliers
Module 5, Section A, Topic 2

223. Automated guided vehicle systems (AGV) are component of which handling system?
A. Mechanized
B. Semi-automated
C. Automated
D. Information directed
Module 7, Section D, Topic 2

224. In preparation for the release of a new product requiring a specific raw material, a
company purchases significant quantity of the material. Which of the following inventory
investment is the company exercising?
A. Anticipation inventory
B. Buffer inventory
C. Cycle stock
D. Safety stock
Module 4, Section F, Topic 3