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APICS CLTD Exam Practice Questions (P. 2)

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Question #11
Climate-controlled warehouses are typically used:
  1. A
    to assure operators can work in the best conditions.
  2. B
    for storage of food items such as pasta and sugar.
  3. C
    for storage of raw material used in aerospace industry.
  4. D
    for storage of certain agricultural and medical products.

Correct Answer:
B

Question #12
An operations manager in concerned that the order-to-cash cycle for their largest customer is too long. The manager is referring to the time that elapses from when the company receives an order from the customer until the:
  1. A
    customer processes payment.
  2. B
    warehouse in notified to ship the goods.
  3. C
    customer receives that order in inventory.
  4. D
    company receives payment.

Correct Answer:
C

Question #13
Consignment inventory requires that manufacturers:
  1. A
    deliver their products to the consumer and payment from consumers is based on supply.
  2. B
    stock their products on retail stores shelves and payment from consumers is based on forecast.
  3. C
    deliver their products to the consumer and wait for payment until consumers requires to refill stock level.
  4. D
    stock their products on retail stores shelves and wait for payment until consumers purchase the product.

Correct Answer:
D

Question #14
A pharmaceutical company makes drugs that control the spread of the influenza virus after outbreaks occur. Deployment to outbreak areas requires a transportation mode that is fast and provides door-to-door connectivity.
Which of the following modes of transportation should the company choose?
  1. A
    Intermodal
  2. B
    Truck
  3. C
    Drone
  4. D
    Air

Correct Answer:
B

Question #15
Which of the following inventory ordering techniques would a company's corporate warehouse utilize if it is interested in meeting both the quantity and timing requirements of demand from its regional warehouses?
  1. A
    Distribution requirements planning (DRP)
  2. B
    Fixed order quantity/variable cycle
  3. C
    Periodic review
  4. D
    Kanban

Correct Answer:
D

Question #16
A company setting up a warehouse wants to maintain a first in, first out (FIFO) stock rotation. Which of the following storage systems should they utilize?
  1. A
    Pallet racking
  2. B
    Block stacking
  3. C
    Flow racking
  4. D
    Push-back racking

Correct Answer:
A

Question #17
A firm offers their customers shorter order cycle times and increased product variety. Generally, this action would have which of the following impacts on total logistics costs?
  1. A
    Increases total logistics costs
  2. B
    Reduces total logistics costs
  3. C
    Has no impact on total logistics costs
  4. D
    Only affects service levels, not costs

Correct Answer:
C

Question #18
A third-party logistics (3PL) provider is seeking to market its value-added warehousing services to international shippers. These services refer to activities such as:
  1. A
    selecting the best location in the warehouse for storage and retrieval.
  2. B
    total warehousing cost minimization on equipment, maintenance, and labor.
  3. C
    customization services like packaging, labeling, kitting, and setting up displays.
  4. D
    improving overall quality measured by ad-hoc metrics according to international standards.

Correct Answer:
B

Question #19
When determining the optimal logistics terminal location, one of the primary goals is to minimize:
  1. A
    peddle time
  2. B
    stem miles
  3. C
    the number of pick-up locations
  4. D
    the size of customer shipments

Correct Answer:
C

Question #20
In addition to declaring the origin of goods, a certificate of origin is used to determine the:
  1. A
    export declaration
  2. B
    cost of transportation
  3. C
    standard cost
  4. D
    applied tariff

Correct Answer:
A

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