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Selecting a third-party logistics (3PL) or fourth-party logistics (4PL) provider is an example of a(n):

A.
strategic alliance
A.
strategic alliance
Answers
B.
joint venture
B.
joint venture
Answers
C.
acquisition
C.
acquisition
Answers
D.
internal function
D.
internal function
Answers
Suggested answer: A


A carrier receives damaged goods. What actions best describes what the carrier should do so that it is not liable for the damages?

A.
Rewrite the bill of lading (B\L).
A.
Rewrite the bill of lading (B\L).
Answers
B.
Make exception note on B\L from clean to uniform.
B.
Make exception note on B\L from clean to uniform.
Answers
C.
Make an exception note on B\L from clean to soiled.
C.
Make an exception note on B\L from clean to soiled.
Answers
D.
Reject the B\L.
D.
Reject the B\L.
Answers
Suggested answer: C

A company’s distribution center receives material from a number of sources and combines them into exact quantities for a specific destination.

Which of the following functions is the distribution center providing?

A.
Cross-docking
A.
Cross-docking
Answers
B.
Consolidation
B.
Consolidation
Answers
C.
Break-bulk
C.
Break-bulk
Answers
D.
Integration
D.
Integration
Answers
Suggested answer: A

A corporation is redesigning its warehouse and has decided to use a rack system that allows each level to be accesses individually by placing pallets on wheeled frames. The rack system that best meets this criteria is:

A.
flow-through
A.
flow-through
Answers
B.
push-back
B.
push-back
Answers
C.
drive-in
C.
drive-in
Answers
D.
double-deep
D.
double-deep
Answers
Suggested answer: C

A tracking company picks up a shipment and takes it to a terminal where it is consolidated with over shipments going to the same city.

This trucking company is most likely a:

A.
truckload (TL) carrier
A.
truckload (TL) carrier
Answers
B.
milk run provider
B.
milk run provider
Answers
C.
less-than-truckload (LTL) carrier
C.
less-than-truckload (LTL) carrier
Answers
D.
private fleet carrier
D.
private fleet carrier
Answers
Suggested answer: A

An ocean carrier’s goal of maximizing total revenue of the entire ship by offering very competitive rates that cover their variable costs and then increasing rates according to what the traffic will bear is referred to as:

A.
any-quantity service rate
A.
any-quantity service rate
Answers
B.
value of service rate
B.
value of service rate
Answers
C.
limited service rate
C.
limited service rate
Answers
D.
incentive rate
D.
incentive rate
Answers
Suggested answer: A

When a company decides not to purchase insurance to cover a risk, it is pursuing what type of risk strategy?

A.
Retention
A.
Retention
Answers
B.
Transfer
B.
Transfer
Answers
C.
Mixed
C.
Mixed
Answers
D.
Mitigation
D.
Mitigation
Answers
Suggested answer: A

Which of the following costs are the most intangible and subjective of all the carrying cost elements?

A.
Risk cost
A.
Risk cost
Answers
B.
Storage cost
B.
Storage cost
Answers
C.
Service cost
C.
Service cost
Answers
D.
Capital cost
D.
Capital cost
Answers
Suggested answer: D

Random stocking can be greatly improved through the use of a(n):

A.
advanced planning system (APS).
A.
advanced planning system (APS).
Answers
B.
inventory management system (IMS)C. transportation management system (TMS).
B.
inventory management system (IMS)C. transportation management system (TMS).
Answers
C.
warehouse management system (WMS).
C.
warehouse management system (WMS).
Answers
Suggested answer:

A manufacturer must consider the long-term effects of its products’ impact on the environment. A key product design consideration is:

A.
routing and scheduling
A.
routing and scheduling
Answers
B.
material handling
B.
material handling
Answers
C.
facility planning
C.
facility planning
Answers
D.
packaging options
D.
packaging options
Answers
Suggested answer: D
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