CLTD ACTUAL EXAM 2026 QUESTIONS WITH
ANSWERS GRADED A+
◉ Payment method risks. Answer: - Open account: risk is on seller
- Cash in advance: risk is on buyer
- Letter of credit, sight draft, & time draft: risk is shared
◉ 5 types of fulfillment channels: Manufacturer storage w/ direct
delivery. Answer: -manu. takes customer order through any # of sales
channels & directly ships goods to the customer (w/ no intermediaries)
-common in B2B settings
-*used for low variety make-to-order goods that customer can wait a
long time for; large lot sizes*
◉ 5 types of fulfillment channels: Manufacturer storage w/ drop ship.
Answer: -manu. takes customer orders from customer and customer
receives goods directly from the manu.
-use transload and cross-dock facilities
-*best for high value, sporadic items; can be make-to-order, customized,
or postponed items that can be finished when the order arrives*
-higher trans. costs due to more smaller shipments
,◉ 5 types of fulfillment channels: Manufacturer to DC to Retailer.
Answer: - traditional supply chain
-inventory-intensive method as all echelons need inventory
-*best for mass-produced, inexpensive goods w/ high competition*
-produces strong product availability and high levels of customer service
◉ 5 types of fulfillment channels: Independent distributor w/ omni-
channel network. Answer: -independent distributor is the channel master,
buying goods from multiple manu. in bulk and aggregating them for a
one-stop shop for customers
-use assortment of TL & LCL
-holds high inventory levels of fast moving items
-need thorough & efficient trans network and sometimes have value
added services
◉ 5 types of fulfillment channels: Independent aggregator w/ e-business
network. Answer: -similar to omni-channel network set up, but relies
more on direct marketing to individuals through its own heavily branded
website (ex. Amazon)
-direct shipping through parcel services is common
-often use loyalty programs
-need high levels of customer service
◉ CSM elements. Answer: -responsiveness: listening to customer
,-information: address customer questions
-confidentiality: protecting info
-capability: those answering questions have experience w/ product
-integrity: being straightforward and honest
-consistency
-dependability: steady commitment to specific level of cust. service
◉ Cycle time. Answer: length of time from when materials enter a
production facility until it exits
◉ Satisfaction measurements. Answer: 1. Process: level of performance
by which a product or service is *delivered* to customer (ex. total order
cycle time, customer complaint stats, damaged goods, billing
adjustments)
2. Product: indication of how a product conforms to quality and design
specs (ex. attractiveness, ease of use, failure rate)
3. Satisfaction: customer's perceptions of product quality and service
(ex. customer access to inventory status, response to customer
complaints, customer feedback cards)
◉ anticipation inventory. Answer: Additional inventory above basic
pipeline stock to cover projected trends of increasing sales, planned sales
promotion programs, seasonal fluctuations, plant shutdowns, and
vacations
, ◉ buffer. Answer: a quantity of materials awaiting further processing
(raws, semifinished goods, or work backlog); purposefully held behind
work center
◉ hedge inventory. Answer: A form of inventory buildup to buffer
against some event that may not happen
◉ Inventory costs. Answer: 1. Acquisition costs: unit cost, ordering cost
(handling & setup)
2. Carrying costs: capital cost, taxes, storage, risk exposure, & insurance
3. Stockout costs: immediate loss of revenue, damaged customer
relations, damaged reputation, & lost future revenue
◉ Unit cost. Answer: Total labor, material, and overhead cost for one
unit of production; price the customer pays to assume ownership
1. material
2. labor
3. overhead
4. packaging
5. transportation
◉ Inventory review approaches: Periodic. Answer: -fixed period review
-more useful for slow-moving, bulk items and items ordered in product
families
ANSWERS GRADED A+
◉ Payment method risks. Answer: - Open account: risk is on seller
- Cash in advance: risk is on buyer
- Letter of credit, sight draft, & time draft: risk is shared
◉ 5 types of fulfillment channels: Manufacturer storage w/ direct
delivery. Answer: -manu. takes customer order through any # of sales
channels & directly ships goods to the customer (w/ no intermediaries)
-common in B2B settings
-*used for low variety make-to-order goods that customer can wait a
long time for; large lot sizes*
◉ 5 types of fulfillment channels: Manufacturer storage w/ drop ship.
Answer: -manu. takes customer orders from customer and customer
receives goods directly from the manu.
-use transload and cross-dock facilities
-*best for high value, sporadic items; can be make-to-order, customized,
or postponed items that can be finished when the order arrives*
-higher trans. costs due to more smaller shipments
,◉ 5 types of fulfillment channels: Manufacturer to DC to Retailer.
Answer: - traditional supply chain
-inventory-intensive method as all echelons need inventory
-*best for mass-produced, inexpensive goods w/ high competition*
-produces strong product availability and high levels of customer service
◉ 5 types of fulfillment channels: Independent distributor w/ omni-
channel network. Answer: -independent distributor is the channel master,
buying goods from multiple manu. in bulk and aggregating them for a
one-stop shop for customers
-use assortment of TL & LCL
-holds high inventory levels of fast moving items
-need thorough & efficient trans network and sometimes have value
added services
◉ 5 types of fulfillment channels: Independent aggregator w/ e-business
network. Answer: -similar to omni-channel network set up, but relies
more on direct marketing to individuals through its own heavily branded
website (ex. Amazon)
-direct shipping through parcel services is common
-often use loyalty programs
-need high levels of customer service
◉ CSM elements. Answer: -responsiveness: listening to customer
,-information: address customer questions
-confidentiality: protecting info
-capability: those answering questions have experience w/ product
-integrity: being straightforward and honest
-consistency
-dependability: steady commitment to specific level of cust. service
◉ Cycle time. Answer: length of time from when materials enter a
production facility until it exits
◉ Satisfaction measurements. Answer: 1. Process: level of performance
by which a product or service is *delivered* to customer (ex. total order
cycle time, customer complaint stats, damaged goods, billing
adjustments)
2. Product: indication of how a product conforms to quality and design
specs (ex. attractiveness, ease of use, failure rate)
3. Satisfaction: customer's perceptions of product quality and service
(ex. customer access to inventory status, response to customer
complaints, customer feedback cards)
◉ anticipation inventory. Answer: Additional inventory above basic
pipeline stock to cover projected trends of increasing sales, planned sales
promotion programs, seasonal fluctuations, plant shutdowns, and
vacations
, ◉ buffer. Answer: a quantity of materials awaiting further processing
(raws, semifinished goods, or work backlog); purposefully held behind
work center
◉ hedge inventory. Answer: A form of inventory buildup to buffer
against some event that may not happen
◉ Inventory costs. Answer: 1. Acquisition costs: unit cost, ordering cost
(handling & setup)
2. Carrying costs: capital cost, taxes, storage, risk exposure, & insurance
3. Stockout costs: immediate loss of revenue, damaged customer
relations, damaged reputation, & lost future revenue
◉ Unit cost. Answer: Total labor, material, and overhead cost for one
unit of production; price the customer pays to assume ownership
1. material
2. labor
3. overhead
4. packaging
5. transportation
◉ Inventory review approaches: Periodic. Answer: -fixed period review
-more useful for slow-moving, bulk items and items ordered in product
families
