CLTD Online Practice Questions and Answers

According to the Theory of Comparative Advantage, which of the following reasons justifies a country to export a product?

A. The exporting country produces the product utilizing less labor than other countries.

B. The exporting country's wage rate in producing the good is lower than in other countries.

C. The exporting country's productivity is higher in producing the good than the productivity of other countries.

D. The exporting country's cost of producing the good, relative to other goods, is at least as low as in other countries.

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

A. strategic alliance

B. joint venture

C. acquisition

D. internal function

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

A. Automatic identification systems (AIS).

B. inventory management system (IMS)

C. transportation management system (TMS).

D. warehouse management system (WMS).

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

A. registration license.

B. import quota.

C. cargo preference.

D. manufacturing location.

A company that ships self-propelled cargo and prefers not to utilize specialized lifting equipment should consider which of the following types of shipping vessels?

A. Handysize

B. Roll-on/roll-off (RORO)

C. Suez-Max

D. Trot-on/trot-off (TOTO)

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.

B. customer service levels to be met.

C. calculation of the planned staffing levels.

D. development of the material handling equipment lists.

In an effort to increase their customer service levels and reduce order cycle time, a company is considering adding two additional warehouses to their overall operations.

As a result, which of the following statements best reflects the cost impact of the additional warehouses?

A. Lower inventory costs and higher facility costs

B. Higher inventory costs and lower facility costs

C. Higher inventory costs and higher inbound transportation costs

D. Lower inventory costs and lower inbound transportation costs

Which of the following objectives does lean philosophy seek in developing and redesigning processes?

A. Remove overburden

B. Make more parts

C. Transport rapidly

D. Ship frequently

A company does not have an appointment scheduler and is dealing with capacity constraints at its dock doors. Which of the following systems would facilitate the best solution to this problem?

A. Yard management system (YMS)

B. Advanced planning system (APS)

C. Transportation management system (TMS)

D. Warehouse management system (WMS)

An agricultural corporation must receive permission from the Country X government to export rice to Country Y because Country Y has an import quota on Country X's rice. The document used to provide this permission is called a:

A. merchandise visa.

B. duty drawback.

C. merchandise duty.

D. customs bond.