CLTD FINAL EXAM QUESTIONS AND ANSWERS
For which of the following does the seller bear the freight charges?
-FOB Origin, Freight Prepaid
-FOB Destination, Freight Collect
-FOB destination, Freight Prepaid and Charged Back
-FOB Origin, Freight Collect - CORRECT ANSWER✅✅The seller bears the freight charges in FOB Origin,
Freight Prepaid
What makes the RoadRailer Unique? - CORRECT ANSWER✅✅It is a bimodal trailer with two sets of
wheels
What is the NVOCC? - CORRECT ANSWER✅✅A cargo consolidator (Non-Vessel Operating Common
Carriers); Provide service on a container basis.
Employee's first-hand working knowledge of a product is an example of what CSM element? - CORRECT
ANSWER✅✅Capability; Customers need to efel that when they contact the seller of a product or
service that they will be able to communicate directly with experience professionals who truly know the
products inside and out and have used them
What type of planning would indicate whether long-term warehouse capacity would need expansion in
the coming years, assuming top management approves it? - CORRECT ANSWER✅✅Resource Planning
Capacity planning conducted at the business plan level; The process of establishing, measuring, and
adjusting limits or levels of long-range capacity; Based on the production plan - CORRECT
ANSWER✅✅Resource planning
What is the formula for safety stock? - CORRECT ANSWER✅✅Demand * LT + Safety Stock
Which of the following are the important and typically tracked measures of customer service?
,-Average Age of Stockout and lead-time monitoring
-Lead Time Monitoring and customer service ratio
-Partial Orders delivered and stockout recovery rate
-Monetary value fill rate and stockout rate - CORRECT ANSWER✅✅Lead Time Monitoring and customer
service ratio
If the seller will pay for all transportation costs (no sea or inland waterways will be used) and bears all
risk until the goods have been delivered and pays the duty, which Incoterm should be used? - CORRECT
ANSWER✅✅Delivered Duty Paid (DDP)
What is a characteristic of an in-bond shipment? - CORRECT ANSWER✅✅An in-bond shipment refers to
an import or export shipment which has not yet been cleared by scustoms. It is sealed until the final
destination is reached
What percent of the value of the reverse logistics process depends on matching the product with the
best disposition option? - CORRECT ANSWER✅✅80%
Air cargo generates ______ % of international airline revenue - CORRECT ANSWER✅✅Air cargo
generates 9% of international airline revenue
The most common type of invoice that is sent with the shipment; Utilized by customs to determine the
value of goods in order to determine the amount in duties - CORRECT ANSWER✅✅Commerical Invoice
Delays the completion of the production of finished goods until customer demand is more definite -
CORRECT ANSWER✅✅Postponement
The GHS (Globally Harmonized System of Classification and Labeling of Chemicals) was developed by
the... - CORRECT ANSWER✅✅United Nations
Which is a good way that an organization whose strategy is to compete on cost can reduce risks of
service failure due to uncontrollable events? - CORRECT ANSWER✅✅Locate a manufacturing facility
halfway between two ports
, What is the formula for cash-to-cash cycle time? - CORRECT ANSWER✅✅Cash-to-Cash Cycle time =
Days Sales Outstanding + Inventory Days of Supply - Days Payable Outstanding
What is the difference between a TEU and an FEU? - CORRECT ANSWER✅✅20 feet (TEU = Twenty-foot
equivalent units, FEU - Forty-Foot Equivalent Units)
Picking structure in which pickers are assigned a zone in the warehouse; Ideal for a warehouse with a
large number of deliveries per day and a large number of SKUs in the warehouse - CORRECT
ANSWER✅✅Wave Picking
Product transportation characteristics as compared to other products - CORRECT ANSWER✅✅Freight
Rating
Which material requirements planning (MRP) technique ca be leveraged to book inbound transportation
earlier and thus cheaper than if you wait until orders for materials are actually released? - CORRECT
ANSWER✅✅Backscheduling
Product responsibility focuses on the product issues of ______________ and includes labelling
requirements, non-compliance incidents, and customer breaches of privacy, all relevant to the G4
Sustainability Reporting Guidelines - CORRECT ANSWER✅✅Customers
What is a typical description of a "Standard Delivery Truck?" - CORRECT ANSWER✅✅Two axle, six-tire
single unit
What is a good way that the true value of packaging can be presented to stakeholders such as finance? -
CORRECT ANSWER✅✅Include the rate of freight claims
In what type of direct-to-consumer fulfillment model does the retailer ship directly to the customer? -
CORRECT ANSWER✅✅Flow-Through
For which of the following does the seller bear the freight charges?
-FOB Origin, Freight Prepaid
-FOB Destination, Freight Collect
-FOB destination, Freight Prepaid and Charged Back
-FOB Origin, Freight Collect - CORRECT ANSWER✅✅The seller bears the freight charges in FOB Origin,
Freight Prepaid
What makes the RoadRailer Unique? - CORRECT ANSWER✅✅It is a bimodal trailer with two sets of
wheels
What is the NVOCC? - CORRECT ANSWER✅✅A cargo consolidator (Non-Vessel Operating Common
Carriers); Provide service on a container basis.
Employee's first-hand working knowledge of a product is an example of what CSM element? - CORRECT
ANSWER✅✅Capability; Customers need to efel that when they contact the seller of a product or
service that they will be able to communicate directly with experience professionals who truly know the
products inside and out and have used them
What type of planning would indicate whether long-term warehouse capacity would need expansion in
the coming years, assuming top management approves it? - CORRECT ANSWER✅✅Resource Planning
Capacity planning conducted at the business plan level; The process of establishing, measuring, and
adjusting limits or levels of long-range capacity; Based on the production plan - CORRECT
ANSWER✅✅Resource planning
What is the formula for safety stock? - CORRECT ANSWER✅✅Demand * LT + Safety Stock
Which of the following are the important and typically tracked measures of customer service?
,-Average Age of Stockout and lead-time monitoring
-Lead Time Monitoring and customer service ratio
-Partial Orders delivered and stockout recovery rate
-Monetary value fill rate and stockout rate - CORRECT ANSWER✅✅Lead Time Monitoring and customer
service ratio
If the seller will pay for all transportation costs (no sea or inland waterways will be used) and bears all
risk until the goods have been delivered and pays the duty, which Incoterm should be used? - CORRECT
ANSWER✅✅Delivered Duty Paid (DDP)
What is a characteristic of an in-bond shipment? - CORRECT ANSWER✅✅An in-bond shipment refers to
an import or export shipment which has not yet been cleared by scustoms. It is sealed until the final
destination is reached
What percent of the value of the reverse logistics process depends on matching the product with the
best disposition option? - CORRECT ANSWER✅✅80%
Air cargo generates ______ % of international airline revenue - CORRECT ANSWER✅✅Air cargo
generates 9% of international airline revenue
The most common type of invoice that is sent with the shipment; Utilized by customs to determine the
value of goods in order to determine the amount in duties - CORRECT ANSWER✅✅Commerical Invoice
Delays the completion of the production of finished goods until customer demand is more definite -
CORRECT ANSWER✅✅Postponement
The GHS (Globally Harmonized System of Classification and Labeling of Chemicals) was developed by
the... - CORRECT ANSWER✅✅United Nations
Which is a good way that an organization whose strategy is to compete on cost can reduce risks of
service failure due to uncontrollable events? - CORRECT ANSWER✅✅Locate a manufacturing facility
halfway between two ports
, What is the formula for cash-to-cash cycle time? - CORRECT ANSWER✅✅Cash-to-Cash Cycle time =
Days Sales Outstanding + Inventory Days of Supply - Days Payable Outstanding
What is the difference between a TEU and an FEU? - CORRECT ANSWER✅✅20 feet (TEU = Twenty-foot
equivalent units, FEU - Forty-Foot Equivalent Units)
Picking structure in which pickers are assigned a zone in the warehouse; Ideal for a warehouse with a
large number of deliveries per day and a large number of SKUs in the warehouse - CORRECT
ANSWER✅✅Wave Picking
Product transportation characteristics as compared to other products - CORRECT ANSWER✅✅Freight
Rating
Which material requirements planning (MRP) technique ca be leveraged to book inbound transportation
earlier and thus cheaper than if you wait until orders for materials are actually released? - CORRECT
ANSWER✅✅Backscheduling
Product responsibility focuses on the product issues of ______________ and includes labelling
requirements, non-compliance incidents, and customer breaches of privacy, all relevant to the G4
Sustainability Reporting Guidelines - CORRECT ANSWER✅✅Customers
What is a typical description of a "Standard Delivery Truck?" - CORRECT ANSWER✅✅Two axle, six-tire
single unit
What is a good way that the true value of packaging can be presented to stakeholders such as finance? -
CORRECT ANSWER✅✅Include the rate of freight claims
In what type of direct-to-consumer fulfillment model does the retailer ship directly to the customer? -
CORRECT ANSWER✅✅Flow-Through
