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?

Higher labor costs, improved customer service, and no change in warehouse costs

Higher labor costs, increase in warehouse costs, and an increase in transportation costs

Improved customer service, increase in warehouse storage costs, and a decrease in transportation costsD. Decrease in warehouse costs, increase in transportation costs, and no change in customer service

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?

More profits due to higher return rate of customers

More profits due to larger volume of returned products

Less profits due to increase in investment costs

Less profits due to negative impact on brand image

A developing country would like to improve its trade relations with Europe by updating its port infrastructure. Which international organization would help fund the project?

the bank for International Settlements

The International Monetary Fund

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

Capacity, transit time, safety, supply chain security participation, and availability

Capacity, transit time, reliability, safety, and supply chain security participation

Accessibility, capacity, transit time, reliability, and financial stability

Accessibility, capacity, transit time, reliability, and safety

Capacity, transit time, safety, supply chain security participation, and availability

A planning process specifically designed to balance demand and supply within an organization and arrive at a consensus forecast is known as:

advanced planning and scheduling (APS).

collaborative planning, forecasting, and replenishment (CPFR).

sales and operations planning (S&OP).

distribution requirements planning (DRP).

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

naval forces of the flag of registry.

United Nations (UN) military forces.

country closest to the vessel at the time of attack.

naval forces of the flag of registry.

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?

Customer B has higher service level

100% service levels for B and C

Customer B has higher service level

Customer C has higher service level

Customer B and C have the same service level

Procurement professional are focused on the total cost of ownership (TCO) in their vendor selection strategies. This implies that:

procurement is decreasing its emphasis on the importance of vendor certification and audit programs.

procurement is now increasingly charged with pushing back inventory to vendors.

there is increased consideration of trade-offs among purchase price, quality, and vendor capability.

procurement is decreasing its emphasis on the importance of vendor certification and audit programs.

there is increased emphasis on procuring at the lowest purchase price possible.

Higher throughput operations enable private warehouses to:

accomplish better facility utilization with declining overheads.

spread out variable costs over large output volumes

spread out fixed costs over large output volumes.

allocate total unit costs on the basis of traffic volume.

accomplish better facility utilization with declining overheads.

Which of the following activities best describes the functionality of decoupling stock within firms’ inventory systems?

Separation of the manufacturing process from order processing

Separation of the manufacturing process from the selling process.

Maintaining inventory to accommodate uncertainty in demand at different geographical positions.

Maintaining inventory at a central location for all stages of the value-creation process.

Compared to a centralized distribution network strategy, an organization using a decentralized distribution network strategy can usually expect:

lower cost of transportation and lower warehousing cost.

lower cost of lost sales and higher inventory cost

higher cost of lost sales and higher inventory cost.

lower cost of transportation and lower warehousing cost.

higher cost of transportation and lower warehousing cost.

The scope of logistics includes transportation:

inventory carrying costs, warehousing, and cost management.

order processing, inventory carrying costs, and production output.

inventory carrying costs, warehousing, and cost management.

manufacturing, customer accommodation, and purchasing.

inventory carrying costs, order processing, and warehousing.

The allocation of revenues and costs to customer segments or individual customers in order to estimate segment value is known as:

customer relationship management (CRM).

customer profitability analysis.

customer standardization analysis.

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:

manage the process internally or outsource to a third party.

take back the dunnage or tell the retailer to destroy it all.

reduce packaging materials to save money but risk more damage.

increase the selling price to the retailer to cover increased costs.

A company is considering implementing collaborative planning, forecasting, and replenishment (CPFR). Which of the following statements best reflects one of the objectives of CPFR?

It represents a sequence of business processes between consumers and retailers.

It replaces traditional forecasting methods with a shared single forecast among trading partners.

It represents a sequence of business processes within the manufacturing environment.

It replaces traditional inventory management procedures with a vendor-managed (VMI) system.

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

FOB destination, freight prepaid

FOB destination, freight collect

FOB destination, freight prepaid

Which of the following factors would be the greatest challenge for a firm planning to ship goods internationally by truck?

Unpredictable weather and climate

Which of the following groups was formed for the purpose of eliminating the trade barriers among its members?

Organization of Petroleum Exporting Countries (OPEC)

North Atlantic Treaty Organization (NATO)

A company finds itself constantly expending its customer’s retail store deliveries in order to prevent stock-outs. The best solution to this problem is to:

increase inventory turns to the highest possible value.

carry additional inventory to satisfy customer’s demand.

balance the supply of inventory with the demand.

minimize the inventory risk of product obsolescence.

increase inventory turns to the highest possible value.

According to the SCOR model, the five major categories of metrics that should be used to measure the performance of Process D1: Deliver Stocked Product include assets, costs, flexibility:

reliability, and responsiveness

APICS CLTD Practice Test 2 - Free Online Exam Prep & Questions

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?

Technical

Demand

Process

Financial

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