The primary role of the World Trade Organization (WTO) is to:

create global free trade agreements.

establish an international system of payment.

stabilize international currency exchange rates.

enforce free trade on a global basis.

create global free trade agreements.

In addition to order placement and order processing, which of the following steps are part of the order management process?

Order preparation and loading and order delivery

Order preparation and loading and order picking

Order preparation and loading and order delivery

Order transit time and order returns

Order transit time and customer receiving

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

The longer the order cycle length, the less inventory is required to be held

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

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

The longer the order cycle length, the less inventory is required to be held

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

As a means to protect domestic industries, which of the following requirements is an example of a non-trade barrier?

Mandating compliance with triple bottom line (TBL)

Requesting a mandatory consular invoice

Utilizing Convention on International Sale of Goods (CISG)

Mandating compliance with triple bottom line (TBL)

Which of the following situations best describes when duty drawbacks can be granted?

A manufacturer minimally transforms imports, making products that are then exported.

A distributor resells imported products.

All of the raw materials are imported, a product is created, and then sold domestically.

An exported product has significant domestic content.

Triple bottom line (TBL) refers to balancing the following impacts:

economic, social, and environmental.

environmental, ecological, and ethical.

social, environmental, and regulatory.

financial, economic, and social.

The primary factor that reduces the need for companies to improve transportation sustainability is:

decreased time to implement regulations.

A transit privilege permits a shipper to:

enter a foreign/free trade zone (FTZ) to perform transportation services.

avoid paying tariffs to local authorities.

temporarily stop a shipment to physically transform products.

stop at any port of call without prior notification.

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

eliminated all foreign/free trade zones (FTZs) outside of sea ports.

refused to cooperate on sustainability initiatives.

adopted multiple standards that are state specific.

eliminated all foreign/free trade zones (FTZs) outside of sea ports.

followed Customs Trade Partnership Against Terrorism (C-TPAT) rules.

A logistics manager is asked to perform a total cost analysis for the organization. Which of the following trade-offs is critical to consider?

Transportation costs vs. inventory carrying costs

Inventory carrying costs vs. production costs

Distribution costs vs. order processing costs

Transportation costs vs. inventory carrying costs

landed costs vs. production costs

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?

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

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

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

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

Which of the following sets of elements are the major components of inventory carrying cost?

Capital, storage space, inventory service, inventory risk

Capital, storage space, inventory service, transportation

Storage space, inventory service, inventory risk, transportation

Capital, storage space, inventory service, inventory risk

Capital, storage space, inventory service, distribution

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?

Network inventory cost minimization

The task that best describes the value proposition offered by freight forwarders is that they:

act as agents for domestic firms in international markets, primarily obtaining orders for their clients’ products.

export goods and services and locates overseas buyers on their clients’ behalf.

consolidate shipments from various customers and offer lower transportation rates.

operate under power of attorney from the shipper to pay all import duties and are ultimately liable for unpaid duties.

Stockout frequency refers to:

the probability that a firm will not have inventory available to meet customer orders.

a single event where a firm will not have inventory available to meet customer orders.

the cost of sales that a firm will have when insufficient inventory is available to meet customer orders.

the percentage of days in which inventory necessary to meet customer orders is missing.

Which of the following theories is illustrated in the list below?Stage 1: A new product is created to fill a domestic need and produced locally.Stage 3: The newly created product is offered to international customers.Stage 4: International customers develop expertise and offer the product at a lower cost to the original country.

International product life cycle theory

Sheffi’s logistics cluster theory

Theory of Comparative Advantage

APICS CLTD Practice Test 4 - Free Online Exam Prep & Questions

In building a daily route schedule, which of the following factors provides the greatest challenge for a transportation manager?

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