APICS APICS Certifications CLTD Questions & Answers

• Question 121:

  In a retail firm's implementation of vendor-managed inventory (VMI), what trading partners are responsible for setting target inventory levels and making restocking decisions?

  A. Retail consumers and vendors

  B. Retailer and its suppliers

  C. Retailer and its buyers

  D. Retail consumers and retailers

  Correct Answer: B

• Question 122:

  A corporation is projecting annual sales at $35 million, cost of goods sold (COGS) at $25 million, and administrative expenses at $3 million. In order to meet its corporate inventory turns goal of 5.0, their inventory level must average:

  A. $4.4 million

  B. $5 million

  C. $7 million

  D. $7.6 million.

  Correct Answer: B

• Question 123:

  Which of the following prerequisites is essential in order to establish an effective order management system?

  A. An ability to reserve inventory and determine a delivery date

  B. An ability to understand customer needs

  C. An ability to plan and build loads

  D. An ability to receive, enter, and validate an orders

  Correct Answer: D

• Question 124:

  In the economic utility function of logistics, logistics adds:

  A. form and time utilities to products, while other activities add place and possession utilities.

  B. possession and place utilities to products, while other activities add form and possession utilities.

  C. place and time utilities to products, while other activities add form and possession utilities.

  D. possession and form utilities to products, while other activities add time and place utilities.

  Correct Answer: C

• Question 125:

  Which of the following statements best reflects the intent of a shipper and a carrier who are negotiating a contract utilizing the integrative bargaining technique?

  A. The shipper is integrating its shipping needs and the carrier is integrating its market power to achieve better contract terms individually.

  B. The shipper and the carrier are attempting to understand each other's needs to create mutually beneficial contract terms.

  C. The shipper and the carrier are making an integrated effort to make extreme demands followed up by small, slow concessions.

  D. The shipper and the carrier are in direct conflict with each other's goals and are attempting to take advantage of each other.

  Correct Answer: B

• Question 126:

  Given the data below, calculate the reorder point (ROP).

  Average daily demand = 30 units/day Lead time = 4 days Safety stock = 20

  A. 30 units

  B. 8 units

  C. 120 units

  D. 140 units

  Correct Answer: D

• Question 127:

  According to the Theory of Comparative Advantage, which of the following reasons justifies a country to export a product?

  A. The exporting country produces the product utilizing less labor than other countries.

  B. The exporting country's wage rate in producing the good is lower than in other countries.

  C. The exporting country's productivity is higher in producing the good than the productivity of other countries.

  D. The exporting country's cost of producing the good, relative to other goods, is at least as low as in other countries.

  Correct Answer: D

• Question 128:

  A non-profit transportation membership cooperative that arranges for the domestic or international shipment of member's cargo over any mode of transportation is known as a(n):

  A. freight bureau.

  B. freight broker association.

  C. shipper's association.

  D. integrated service provider.

  Correct Answer: C

• Question 129:

  When determining the optimal logistics terminal location, one of the primary goals is to minimize:

  A. peddle time

  B. stem miles

  C. the number of pick-up locations

  D. the size of customer shipments

  Correct Answer: B

• Question 130:

  In addition to declaring the origin of goods, a certificate of origin is used to determine the:

  A. export declaration

  B. cost of transportation

  C. standard cost

  D. applied tariff

  Correct Answer: D