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APICS CLTD Practice Test - Questions Answers, Page 9

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Which of the following rules specifies whether the importer is responsible for insuring cargo?

A.
World Trade Organization (WTO) rule
A.
World Trade Organization (WTO) rule
Answers
B.
Lloyds of London rule
B.
Lloyds of London rule
Answers
C.
Incoterms ® rule
C.
Incoterms ® rule
Answers
D.
Shipper’s rule
D.
Shipper’s rule
Answers
Suggested answer: A

A restriction that can be classified as a non-tariff barrier would be a(n):

A.
registration license.
A.
registration license.
Answers
B.
import quota.
B.
import quota.
Answers
C.
cargo preference.
C.
cargo preference.
Answers
D.
manufacturing location.
D.
manufacturing location.
Answers
Suggested answer: B

An organization wanting to improve the management of resources and exceptions across the supply chain should focus on enhancing:

A.
supply chain visibility.
A.
supply chain visibility.
Answers
B.
simultaneous consideration of resources.
B.
simultaneous consideration of resources.
Answers
C.
resource utilization.
C.
resource utilization.
Answers
D.
overall asset utilization.
D.
overall asset utilization.
Answers
Suggested answer: A

When a logistics manager assigns workers to receive, store, and move goods into and out of warehouse, they are managing which of the following activities?

A.
Physical distribution
A.
Physical distribution
Answers
B.
Materials handling
B.
Materials handling
Answers
C.
Production management
C.
Production management
Answers
D.
Inventory management
D.
Inventory management
Answers
Suggested answer: D

Which of the following order characteristics would make increased levels of inventory necessary?

A.
Speed
A.
Speed
Answers
B.
Variability
B.
Variability
Answers
C.
Cost
C.
Cost
Answers
D.
Delivery
D.
Delivery
Answers
Suggested answer: C

Which of the following outcomes is a potential advantage of operating an efficient reverse logistics process?

A.
Provides competitive differentiation
A.
Provides competitive differentiation
Answers
B.
Enables visibility throughout the supply chain
B.
Enables visibility throughout the supply chain
Answers
C.
Improves the product life cycle
C.
Improves the product life cycle
Answers
D.
Reduces transportation costs
D.
Reduces transportation costs
Answers
Suggested answer: A

The key factors in modal determination when comparing the trade-off between cost and service include:

A.
distance and load size.
A.
distance and load size.
Answers
B.
carrier capacity and distance.
B.
carrier capacity and distance.
Answers
C.
distance and carrier rates.
C.
distance and carrier rates.
Answers
D.
carrier rates and load size.
D.
carrier rates and load size.
Answers
Suggested answer: D

Which of the following statements best describes the primary objective of most warehouses?

A.
Provide additional storage to excess inventory and avoid its disposal
A.
Provide additional storage to excess inventory and avoid its disposal
Answers
B.
Ensure that inventory levels are in accordance with the company’s financial target
B.
Ensure that inventory levels are in accordance with the company’s financial target
Answers
C.
Accurately reflect the company’s working capital status
C.
Accurately reflect the company’s working capital status
Answers
D.
Facilitate the movement of goods through the supply chain to the end consumer
D.
Facilitate the movement of goods through the supply chain to the end consumer
Answers
Suggested answer: C

A carrier takes three weeks to deliver a product which has average sales of 1,000 units per week. The unit cost is $20 each and the carrying cost is 15%. What is the savings in the transportation inventory cost if management decides to change the mode of transportation to decrease time to one week?

A.
$2,000
A.
$2,000
Answers
B.
$3,000
B.
$3,000
Answers
C.
$6,000
C.
$6,000
Answers
D.
$9,000
D.
$9,000
Answers
Suggested answer: C

Which of the following methods is used for facility location selection based on the location of markets, the volume of goods shipped, and shipping costs?

A.
Factor rating
A.
Factor rating
Answers
B.
Center-of-gravity
B.
Center-of-gravity
Answers
C.
Break-even analysis
C.
Break-even analysis
Answers
D.
Least cost
D.
Least cost
Answers
Suggested answer: D
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