LOGISTICS FINAL TEST 2026 QUESTIONS
WITH CORRECT ANSWERS GRADED A+
◍ Digital Freight Exchange.
Answer: These are online transaction systems for shippers and carriers that
enable online freight purchasing; facilitating the matching of shipper
demand with carrier availability.
◍ Four warehouses have annual stock turnover ratios of the following:W = 4X
= 5Y = 8Z = 10Which warehouse holds the lowest level of inventory?.
Answer: z
◍ E-Commerce.
Answer: Buying and selling of goods and services, or the transmission of
funds or data over the internet.
◍ The average picking productivity of two warehouses is X orders per picker
per hour and 2X orders per picker per hour, respectively. What is the reason
for the productivity difference?.
Answer: Picking equipment usage
◍ A company wants to improve its put-away efficiency across its storage
network by using advanced systems. Which system can help the company
achieve this goal?.
Answer: Warehouse management system (WMS)
◍ Fewer depots.
Answer: Reduced depot costs, less complicated logistics structure, service
reduction.
◍ Air Documentation.
, Answer: Air waybills (AWB), House Air Waybills (HAWB), Packing lists,
commercial invoices, certificates of origin, cargo or specific documents.
◍ Cross-Docking.
Answer: Reducing storage time by immediately transferring goods from
inbound to outbound shipments.
◍ Which supply chain strategy is used to address demand changes using an
agile method?.
Answer: Quick response
◍ What is one of the goals of the Kyoto customs convention?.
Answer: To make customs procedures more predictable
◍ Pallet Positions.
Answer: Specific locations for pallet storage in racking.
◍ A firm is establishing a measurement system to evaluate the effectiveness of
its operational functions. Managers with different levels of policy and
decision-making authority will be contributing to and implementing
improvements based on the data produced by the system. Which best
practice should the firm consider as it develops its measurement system?.
Answer: Hierarchy of needs
◍ A firm uses a formal benchmarking system that considers the requirements
of the company’s customers and focuses on improving supplier performance
for consumers. Which system does the firm use?.
Answer: Quality function deployment
◍ International Chamber of Commerce (ICC).
Answer: Standard terms or Incoterms 2020 often applied.
◍ Which type of transportation mode is optimal for shipping a package
containing an expensive antique vase a very long distance?.
Answer: Air
◍ Push-Back Racking.
Answer: Dense storage allowing individual access to pallets.
,◍ Service Cost.
Answer: Stock management and insurance expenses.
◍ A manager evaluates key performance indicators related to cost centers and
operations standards and compares the variance between actual costs and
performance data to take corrective action What is the manager evaluating?.
Answer: Operating control system
◍ Types of Inventory.
Answer: Raw materials, In-process stock, Finished goods, Pipeline stock,
Spare parts and general stores
◍ Roll-cages.
Answer: These are normally constructed of steel and often comprise mesh
bottom, sides and shelves. Wheels are fitted to each corner so that the
roll-cages can be pushed. Alternatively, forks can be inserted under the base
so that they can be moved by a pallet truck. They are commonly used in
retail distribution both for order picking and for delivery to shops.
◍ A company’s distribution process moves goods from the production facility
to the warehouse, to local distribution centers, and then on to customers.
Which distribution process is the company using?.
Answer: Echelon
◍ A firm uses a formal benchmarking framework that applies standards based
on productivity and operational performance excellence officially
recognized in the United States. Which framework is the firm using?.
Answer: Malcolm Baldridge National Quality Award criteria
◍ A community college raises funds to support humanitarian aid in another
country that is experiencing a famine. Which role does the community
college play?.
Answer: Donor
◍ Consignment Factors Physical.
Answer: Volume to weight ratio, value to weight ratio, substitutability,
, special characteristics.
◍ A company’s distribution center receives large shipments from its
manufacturing plants, which are then shipped out as smaller shipments to
customers. Which type of operation is the distribution center using?.
Answer: Break-bulk
◍ Dollies.
Answer: Wheeled bases for stacking trays and bins.
◍ Drive-In Racking.
Answer: Metal uprights support pallets in block stack.
◍ Economic Order Quantity (EOQ).
Answer: A model used to determine the ideal order quantity that minimizes
total inventory costs.
◍ Mass.
Answer: High volume and low variety.
◍ SCOR Metrics.
Answer: SCOR Metrics (Assets, cost, time, productivity)
◍ Operational areas of responsibility.
Answer: Transport, warehousing, information.
◍ A firm decides to outsource its operations management functions. Which
first step should the firm take to consider this relationship?.
Answer: Identify service requirements and costs
◍ A warehouse received a vehicle with stock on the twelfth day of the month
and moved it to the storage location on the fifteenth day of the month. The
customer’s order for the product was received on the sixteenth day of the
same month, and it was dispatched on the seventeenth. What is the put-away
cycle time for this operation?.
Answer: Three days
◍ A firm rapidly increases its variety of goods, requiring it to order a larger
assortment of inventory. Which factor is influencing rising inventory costs?.