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

A.
Variable cost of fuel
A.
Variable cost of fuel
Answers
B.
Unpredictable weather and climate
B.
Unpredictable weather and climate
Answers
C.
Variations in road conditions
C.
Variations in road conditions
Answers
D.
Complex rules and regulations
D.
Complex rules and regulations
Answers
Suggested answer: D

Net advantages gained by the sharing of common locations by similar enterprises is based on which of the following terms?

A.
Agglomeration
A.
Agglomeration
Answers
B.
Lowest cost
B.
Lowest cost
Answers
C.
Differentiation
C.
Differentiation
Answers
D.
Free market
D.
Free market
Answers
Suggested answer: A

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

A.
United nations (UN)
A.
United nations (UN)
Answers
B.
European Union (EU)
B.
European Union (EU)
Answers
C.
Organization of Petroleum Exporting Countries (OPEC)
C.
Organization of Petroleum Exporting Countries (OPEC)
Answers
D.
North Atlantic Treaty Organization (NATO)
D.
North Atlantic Treaty Organization (NATO)
Answers
Suggested answer: B

A company wishes to ship large quantities via ocean freight, utilizing the entire vessel capacity. The most appropriate contract of carriage to use a:

A.
bill of loading (B/L).
A.
bill of loading (B/L).
Answers
B.
wet lease.
B.
wet lease.
Answers
C.
charter party.
C.
charter party.
Answers
D.
letter of credit.
D.
letter of credit.
Answers
Suggested answer: C

Which of the following is normally within the logistics function of a manufacturing organization?

A.
Production management
A.
Production management
Answers
B.
Financial management
B.
Financial management
Answers
C.
Warehouse management
C.
Warehouse management
Answers
D.
Marketing management
D.
Marketing management
Answers
Suggested answer: B

A logistics manager is developing a supply chain risk management plan incorporating contingency plans for alternatives to transport failures. Which of the following factors best represents this approach?

A.
Avoidance
A.
Avoidance
Answers
B.
Acceptance
B.
Acceptance
Answers
C.
Mitigation
C.
Mitigation
Answers
D.
Redundancy
D.
Redundancy
Answers
Suggested answer: A

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:

A.
carry additional inventory to satisfy customer’s demand.
A.
carry additional inventory to satisfy customer’s demand.
Answers
B.
balance the supply of inventory with the demand.
B.
balance the supply of inventory with the demand.
Answers
C.
minimize the inventory risk of product obsolescence.
C.
minimize the inventory risk of product obsolescence.
Answers
D.
increase inventory turns to the highest possible value.
D.
increase inventory turns to the highest possible value.
Answers
Suggested answer: D

A company receives automobile parts from global manufactures into its distribution center before redeploying the parts to local retail outlets. Which of the following documents can be used to proactively plan for the redeployment of the parts?

A.
Bill of lading (B\L)
A.
Bill of lading (B\L)
Answers
B.
Advance ship notice (ASN)
B.
Advance ship notice (ASN)
Answers
C.
Routing guide
C.
Routing guide
Answers
D.
Shipment manifest
D.
Shipment manifest
Answers
Suggested answer: A

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:

A.
reliability, and responsiveness
A.
reliability, and responsiveness
Answers
B.
capability, and responsiveness
B.
capability, and responsiveness
Answers
C.
reliability, and capability
C.
reliability, and capability
Answers
D.
reliability, and availability
D.
reliability, and availability
Answers
Suggested answer: A

A company has a line haul cost between Point A and Point B of $5 per mile. The distance between the two points is 750 miles.

What is the cost per hundredweight (cwt) for a shipment weighing 45,000 pounds?

A.
$0.12
A.
$0.12
Answers
B.
$5.00
B.
$5.00
Answers
C.
$8.33
C.
$8.33
Answers
D.
$9.00
D.
$9.00
Answers
Suggested answer: C
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