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NEW QUESTION 70
A vessel operating under the threat of piracy or hostile military action is protected by the:
- A. country closest to the vessel at the time of attack.
- B. United Nations (UN) military forces.
- C. naval forces of the flag of registry.
- D. shipping company registry.
Answer: C
NEW QUESTION 71
Which of the following statements best describes the relationship between order cycle time and inventory?
- A. The changes made to the order cycle has little/no impact on inventory levels
- B. The shorter the order cycle length, the less inventory is required to be held
- C. The longer the order cycle length, the less inventory is required to be held
- D. The shorter the order cycle length, the more inventory is required to be held
Answer: C
NEW QUESTION 72
Under what circumstances should management generally consider utilizing qualitative forecasting techniques?
- A. When demand is dependent on bill of material (BOM) calculations
- B. When real-time data flow is available
- C. When historic data is both clear and relatively stable
- D. When developing strategic-level forecasts
Answer: C
NEW QUESTION 73
Triple bottom line (TBL) refers to balancing the following impacts:
- A. social, environmental, and regulatory.
- B. environmental, ecological, and ethical.
- C. economic, social, and environmental.
- D. financial, economic, and social.
Answer: C
NEW QUESTION 74
A carrier takes three weeks to deliver a product which has average sales of 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 to decrease delivery time to one week?
- A. S3,000
- B. $2,000
- C. $9,000
- D. $6,000
Answer: B
NEW QUESTION 75
A company would like to implement a strategic initiative of enhancing its reverse logistics process. Which of the following statements best describes the profitability impact of such a strategy?
- A. Less profits due to increase in investment costs
- B. More profits due to larger volume of returned products
- C. More profits due to higher return rate of customers
- D. Less profits due to negative impact on brand image
Answer: C
NEW QUESTION 76
Higher throughput operations enable private warehouses to:
- A. accomplish better facility utilization with declining overheads.
- B. spread out fixed costs over large output volumes.
- C. allocate total unit costs on the basis of traffic volume.
- D. spread out variable costs over large output volumes
Answer: A
NEW QUESTION 77
An oil and gas company needs to ship petrol 1.000 miles from the port of entry to an inland refinery. Which of the following modes of transportation provides the best long-term, cost-efficient solution?
- A. Barge
- B. Trucking
- C. Rail
- D. Pipeline
Answer: D
NEW QUESTION 78
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. Fixed order quantity/variable cycle
- B. Distribution requirements planning (DRP)
- C. Kanban
- D. Periodic review
Answer: C
NEW QUESTION 79
Which of the following types benchmarking would a company utilize in order to determine why a significant gap exists in its order fill rates?
- A. Performance benchmarking
- B. Process benchmarking
- C. Product benchmarking
- D. Strategic benchmarking
Answer: B
NEW QUESTION 80
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?
- A. Higher labor costs, increase in warehouse costs, and an increase in transportation costs
- B. Decrease in warehouse costs, increase in transportation costs, and no change in customer service
- C. Higher labor costs, improved customer service, and no change in warehouse costs
- D. Improved customer service, increase in warehouse storage costs, and a decrease in transportation costs
Answer: B
NEW QUESTION 81
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?
- A. Warehouse to warehouse
- B. All-risks
- C. Open
- D. Special cargo
Answer: C
NEW QUESTION 82
The primary role of the World Trade Organization (WTO) is to:
- A. enforce free trade on a global basis.
- B. create global free trade agreements.
- C. establish an international system of payment.
- D. stabilize international currency exchange rates.
Answer: B
NEW QUESTION 83
A logistics service provider has an average on-time delivery of 30%, average damage free delivery of 30%, and average correct documentation of 30%. Which of the following values represents the probability that the next delivery would be on-time, damage free, and with correct documentation?
- A. 3%
- B. 30%
- C. 90%
- D. 0%
Answer: C
NEW QUESTION 84
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 objective?
- A. Ship by free on board (FOB) terms
- B. Adopt Customs Trade Partnerships Against Terrorism (C-TPAT) rules
- C. Use foreign/free trade zones (FTZs)
- D. Use an international third-party logistics (3PL) provider
Answer: A
NEW QUESTION 85
An organization wanting to improve the management of resources and exceptions across the supply chain should focus on enhancing:
- A. supply chain visibility.
- B. resource utilization.
- C. simultaneous consideration of resources.
- D. overall asset utilization.
Answer: A
NEW QUESTION 86
According to the Theory of Comparative Advantage, which of the following reasons justifies a country to export a product?
- A. The exporting country's cost of producing the good, relative to other goods, is at least as low as in other countries.
- B. The exporting country's productivity is higher in producing the good than the productivity of other countries.
- C. The exporting country produces the product utilizing less labor than other countries.
- D. The exporting country's wage rate in producing the good is lower than in other countries.
Answer: C
NEW QUESTION 87
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?
- A. Break-even analysis
- B. Center-of-gravity
- C. Least cost
- D. Factor rating
Answer: C
NEW QUESTION 88
The key factors in modal determination when comparing the trade-off between cost and service include:
- A. carner capacity and distance.
- B. distance and carrier rates.
- C. carrier rates and load size.
- D. distance and load size.
Answer: C
NEW QUESTION 89
A non-profit transportation membership cooperative that arranges for the domestic or international shipment of member's cargo over any mode of transportation is known as a(n):
- A. freight broker association.
- B. integrated service provider.
- C. shipper's association.
- D. freight bureau.
Answer: C
NEW QUESTION 90
A company receives automobile parts from global manufactures into its distribution center 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 lading (B\L)
- B. Routing guide
- C. Advance ship notice (ASN)
- D. Shipment manifest
Answer: A
NEW QUESTION 91
The surcharge applied by shipping lines to sea freight to offset adverse variation in fuel cost is called:
- A. peak season surcharge
- B. bunker adjustment factor
- C. repositioning charge
- D. currency adjustment factor
Answer: A
NEW QUESTION 92
Which of the following parties play an integral role during the transportation process?
- A. Government, general public, shippers, and consignees
- B. Carriers, consignees, freight brokers, and financial institutions
- C. general public, carriers, warehouses, and shippers
- D. Carriers, shippers, consignees, and financial institutions
Answer: C
NEW QUESTION 93
In an effort to increase their customer service levels and reduce order cycle time, a company is considering adding 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 lower inbound transportation costs
- B. Higher inventory costs and higher inbound transportation costs
- C. Higher inventory costs and lower facility costs
- D. Lower inventory costs and higher facility costs
Answer: D
NEW QUESTION 94
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