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APICS CLTD Exam Practice Questions (P. 4)

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Question #31
Selecting a third-party logistics (3PL) or fourth-party logistics (4PL) provider is an example of a(n):
  1. A
    strategic alliance
  2. B
    joint venture
  3. C
    acquisition
  4. D
    internal function

Correct Answer:
B

Question #32
A carrier receives damaged goods. What actions best describes what the carrier should do so that it is not liable for the damages?
  1. A
    Rewrite the bill of lading (B\L).
  2. B
    Make exception note on B\L from clean to uniform.
  3. C
    Make an exception note on B\L from clean to soiled.
  4. D
    Reject the B\L.

Correct Answer:
A

Question #33
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?
  1. A
    Cross-docking
  2. B
    Consolidation
  3. C
    Break-bulk
  4. D
    Integration

Correct Answer:
A

Question #34
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:
  1. A
    flow-through
  2. B
    push-back
  3. C
    drive-in
  4. D
    double-deep

Correct Answer:
C

Question #35
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:
  1. A
    truckload (TL) carrier
  2. B
    milk run provider
  3. C
    less-than-truckload (LTL) carrier
  4. D
    private fleet carrier

Correct Answer:
A

Question #36
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:
  1. A
    any-quantity service rate
  2. B
    value of service rate
  3. C
    limited service rate
  4. D
    incentive rate

Correct Answer:
A

Question #37
When a company decides not to purchase insurance to cover a risk, it is pursuing what type of risk strategy?
  1. A
    Retention
  2. B
    Transfer
  3. C
    Mixed
  4. D
    Mitigation

Correct Answer:
C

Question #38
Which of the following costs are the most intangible and subjective of all the carrying cost elements?
  1. A
    Risk cost
  2. B
    Storage cost
  3. C
    Service cost
  4. D
    Capital cost

Correct Answer:
D

Question #39
Random stocking can be greatly improved through the use of a(n):
  1. A
    advanced planning system (APS).
  2. B
    inventory management system (IMS)
  3. C
    transportation management system (TMS).
  4. D
    warehouse management system (WMS).

Correct Answer:
A

Question #40
A manufacturer must consider the long-term effects of its products' impact on the environment. A key product design consideration is:
  1. A
    routing and scheduling
  2. B
    material handling
  3. C
    facility planning
  4. D
    packaging options

Correct Answer:
D

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