CLTD - MODULE 1 EXAM 2025/2026
QUESTIONS AND ANSWERS 100% PASS.
Strategic Planning - ANS The Process of developing a strategic plan.
Transportation - ANS The function of planning, scheduling, and controlling activities related
to mode, vendor, and movement of inventories into and out of an organization.
Benchmarking - ANS Comparing products, processes, and services to another organization
thought to have superior performance. The benchmark target may or may not be a competitor
or even in the same industry. There are 7 common forms: competitive, financial, functional,
performance, process, product, strategic.
Dwell - ANS The duration of time between when cargo arrives in a terminal's in-transit
storage area and when it is shipped out by clearance transportation.
Supply Chain Operations Reference Model - ANS A process reference model developed and
endorsed by the Supply Chain Council as the cross-industry, standard diagnostic tool for supply
chain management. The SCOR model describes the business activities associated with satisfying
a customer's demand, which include plan, source, make, deliver, and return. Use of the model
includes analyzing the current state of the company's processes and goals, quantifying
operational performance, and comparing company performance to benchmark data. SCOR has
developed a set of metrics for supply chain performance, and Supply Chain Council members
have formed industry groups to collect best practices information that companies can use to
evaluate their supply chain performance.
Landed Cost - ANS This cost includes the product cost plus the cost of logistics, such as
warehousing, transportation, and handling fees.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Assembled-to-Order (ATO) - ANS A production environment where a good or service can be
assembled after receipt of a customer's order. The key components (bulk, semi-finished,
intermediate, subassembly, fabricated, purchased, packing, and so on) used in the assembly or
finishing process are planned and usually stocked in anticipation of a customer order. Receipt of
an order initiates assembly of the customized product. This strategy is useful where a large
number of end products (based on the selection of options and accessories) can be assembled
from common components.
Value Added - ANS 1.) In accounting, the addition of direct labor, direct material, and
allocated overhead assigned at an operation. It is the cost roll-up as a part goes through a
manufacturing process to finished inventory. 2.) In current manufacturing terms, the actual
increase of utility from the viewpoint of the customer as a part is transformed from raw
material to finished inventory. It is the contribution made by an operation or a plant to the final
usefulness and value of a product, as seen by the customer. The objective is to eliminate all non-
value-added activities in producing and providing a good or service.
Activity-Based Costing (ABC) - ANS In activity-based cost accounting, a model, by time period
of resource costs created because of activities related to products or services or other items
causing the activity to be carried out. Syn: Activity-based cost accounting, activity-based costing
model.
Electronic Commerce (E-Commerce) - ANS The use of computer and telecommunication
technologies to conduct business via electronic transfer of data and documents.
Kanban - ANS A method of just-in-time production that uses standard containers or lot sizes
with a single card attached to each. It is a pull system in which work centers signal with a card
that they wish to withdraw parts from feeding operations or suppliers. The Japanese word
Kanban, loosely translated, means card, billboard, or sign but other signaling devices such as
colored golf balls have also been used. The term is often used synonymously for the specific
scheduling system developed and used by the Toyota Corporation in Japan.
Six Sigma - ANS A methodology that furnishes tools for the improvement of business
processes. The intent is to decrease process variation and improve product quality.
Sourcing - ANS The process of identifying a company that provides a needed good or service.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS 100% PASS.
Strategic Planning - ANS The Process of developing a strategic plan.
Transportation - ANS The function of planning, scheduling, and controlling activities related
to mode, vendor, and movement of inventories into and out of an organization.
Benchmarking - ANS Comparing products, processes, and services to another organization
thought to have superior performance. The benchmark target may or may not be a competitor
or even in the same industry. There are 7 common forms: competitive, financial, functional,
performance, process, product, strategic.
Dwell - ANS The duration of time between when cargo arrives in a terminal's in-transit
storage area and when it is shipped out by clearance transportation.
Supply Chain Operations Reference Model - ANS A process reference model developed and
endorsed by the Supply Chain Council as the cross-industry, standard diagnostic tool for supply
chain management. The SCOR model describes the business activities associated with satisfying
a customer's demand, which include plan, source, make, deliver, and return. Use of the model
includes analyzing the current state of the company's processes and goals, quantifying
operational performance, and comparing company performance to benchmark data. SCOR has
developed a set of metrics for supply chain performance, and Supply Chain Council members
have formed industry groups to collect best practices information that companies can use to
evaluate their supply chain performance.
Landed Cost - ANS This cost includes the product cost plus the cost of logistics, such as
warehousing, transportation, and handling fees.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Assembled-to-Order (ATO) - ANS A production environment where a good or service can be
assembled after receipt of a customer's order. The key components (bulk, semi-finished,
intermediate, subassembly, fabricated, purchased, packing, and so on) used in the assembly or
finishing process are planned and usually stocked in anticipation of a customer order. Receipt of
an order initiates assembly of the customized product. This strategy is useful where a large
number of end products (based on the selection of options and accessories) can be assembled
from common components.
Value Added - ANS 1.) In accounting, the addition of direct labor, direct material, and
allocated overhead assigned at an operation. It is the cost roll-up as a part goes through a
manufacturing process to finished inventory. 2.) In current manufacturing terms, the actual
increase of utility from the viewpoint of the customer as a part is transformed from raw
material to finished inventory. It is the contribution made by an operation or a plant to the final
usefulness and value of a product, as seen by the customer. The objective is to eliminate all non-
value-added activities in producing and providing a good or service.
Activity-Based Costing (ABC) - ANS In activity-based cost accounting, a model, by time period
of resource costs created because of activities related to products or services or other items
causing the activity to be carried out. Syn: Activity-based cost accounting, activity-based costing
model.
Electronic Commerce (E-Commerce) - ANS The use of computer and telecommunication
technologies to conduct business via electronic transfer of data and documents.
Kanban - ANS A method of just-in-time production that uses standard containers or lot sizes
with a single card attached to each. It is a pull system in which work centers signal with a card
that they wish to withdraw parts from feeding operations or suppliers. The Japanese word
Kanban, loosely translated, means card, billboard, or sign but other signaling devices such as
colored golf balls have also been used. The term is often used synonymously for the specific
scheduling system developed and used by the Toyota Corporation in Japan.
Six Sigma - ANS A methodology that furnishes tools for the improvement of business
processes. The intent is to decrease process variation and improve product quality.
Sourcing - ANS The process of identifying a company that provides a needed good or service.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
