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

A.
Outsourcing
A.
Outsourcing
Answers
B.
Consolidating shipments
B.
Consolidating shipments
Answers
C.
Engaging in a third-party logistics (3PL) partnership
C.
Engaging in a third-party logistics (3PL) partnership
Answers
D.
Relying on multiple shipments
D.
Relying on multiple shipments
Answers
Suggested answer: D

To prevent the importing of certain luxury good so that a country can use its hard currency on essential goods, governments can refuse to issue a(n):

A.
general average.
A.
general average.
Answers
B.
specific license.
B.
specific license.
Answers
C.
explicit license.
C.
explicit license.
Answers
D.
import license.
D.
import license.
Answers
Suggested answer: C

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 the vehicle?

A.
$7,000
A.
$7,000
Answers
B.
$11,000C. $19,000
B.
$11,000C. $19,000
Answers
C.
$30,000
C.
$30,000
Answers
Suggested answer: C

Which Incoterm ® applies only to ocean transportation where the exporter is responsible to bring the goods to the port?

A.
Ex works (EXW)
A.
Ex works (EXW)
Answers
B.
Free alongside ship (FAS)
B.
Free alongside ship (FAS)
Answers
C.
Free on board (FOB)
C.
Free on board (FOB)
Answers
D.
Delivered at place (DAP)
D.
Delivered at place (DAP)
Answers
Suggested answer: B

A company that utilizes barges as a major mode of transportation would typically navigate in:

A.
global maritime routes
A.
global maritime routes
Answers
B.
land bridges
B.
land bridges
Answers
C.
inland waterways
C.
inland waterways
Answers
D.
intermodal transportation
D.
intermodal transportation
Answers
Suggested answer: D


What facility location method has the advantage of analyzing both quantitative data and hard-to-evaluate criteria?

A.
Center-of-gravity
A.
Center-of-gravity
Answers
B.
Factor rating
B.
Factor rating
Answers
C.
Location and break-even analysis
C.
Location and break-even analysis
Answers
D.
Least-cost-per-lane
D.
Least-cost-per-lane
Answers
Suggested answer: B

A company currently has a significantly long lead time in determining the disposition of returned products. Which of the following non-procedural 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
A.
Financial department to see if the sales personnel are reluctant to charge the returns to sales
Answers
B.
Quality department to see if the process for determining disposition is inefficient
B.
Quality department to see if the process for determining disposition is inefficient
Answers
C.
Customer service department to see if they are taking a long time to address customer concernsD. Material handling department to see if it is taking excessive time to handle defective product
C.
Customer service department to see if they are taking a long time to address customer concernsD. Material handling department to see if it is taking excessive time to handle defective product
Answers
Suggested answer:

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.
Adopt Customs Trade Partnership Against Terrorism (C-TPAT) rules
A.
Adopt Customs Trade Partnership Against Terrorism (C-TPAT) rules
Answers
B.
Use foreign/free trade zones (FTZs)
B.
Use foreign/free trade zones (FTZs)
Answers
C.
Use an international third-party logistics (3PL) provider
C.
Use an international third-party logistics (3PL) provider
Answers
D.
Ship by free on board (FOB) terms
D.
Ship by free on board (FOB) terms
Answers
Suggested answer: D

Which of the following parties play an integral role during the transportation process?

A.
Carriers, shippers, consignees, and financial institutions
A.
Carriers, shippers, consignees, and financial institutions
Answers
B.
Carriers, consignees, freight brokers, and financial institutions
B.
Carriers, consignees, freight brokers, and financial institutions
Answers
C.
general public, carriers, warehouses, and shippers
C.
general public, carriers, warehouses, and shippers
Answers
D.
Government, general public, shippers, and consignees
D.
Government, general public, shippers, and consignees
Answers
Suggested answer: C

When defining the business requirements of a new distribution center, one of the first requirements to be considered is the:

A.
type of construction material needed.
A.
type of construction material needed.
Answers
B.
customer service levels to be met.
B.
customer service levels to be met.
Answers
C.
calculation of the planned staffing levels.
C.
calculation of the planned staffing levels.
Answers
D.
development of the material handling equipment lists.
D.
development of the material handling equipment lists.
Answers
Suggested answer: C
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