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Questions # 1:

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

Options:
A.

differential rates.

B.

incremental rates.

C.

distributive rates.

D.

commodity rates.

Questions # 2:

The scope of logistics includes transportation.

Options:
A.

order processing, inventory carrying costs, and production output.

B.

inventory carrying costs, warehousing, and cost management.

C.

manufacturing, customer accommodation, and purchasing.

D.

inventory carrying costs order processing, and warehousing.

Questions # 3:

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?

Options:
A.

Avoidance

B.

Acceptance

C.

Mitigation

D.

Redundancy

Questions # 4:

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?

Options:
A.

Letter of credit

B.

Open account

C.

Sight draft

D.

Cash in advance

Questions # 5:

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?

Options:
A.

Pallet racking

B.

Block stacking

C.

Flow racking

D.

Push-back racking

Questions # 6:

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?

Options:
A.

Systems concepts and analysis

B.

Total cost of ownership (TCO)

C.

Lean six sigma concepts

D.

Network inventory cost minimization

Questions # 7:

Which of following statements best describes the relationship between order cycle time and inventory?

Options:
A.

The shorter the order cycle length, the more inventory is required to be held

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 changes made to the order cycle has little/no impact on inventory levels

Questions # 8:

A supply chain manager would like to guard against potential shortage in their company's manufacturing capacity. Which of the following areas of supply chain risk should the manager pay most attention to?

Options:
A.

Technical

B.

Demand

C.

Process

D.

Financial

Questions # 9:

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

Options:
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

Questions # 10:

Which of the following strategies would a logistics manager most likely choose in order to reduce transportation cost?

Options:
A.

Outsourcing

B.

Consolidating shipments

C.

Engaging in a third-party logistics (3PL) partnership

D.

Relying on multiple shipments

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