APICS APICS Certifications CLTD Questions & Answers

• Question 161:

  Which of the following attributes best represents how an organization regards the relationship between the cost of lost sales and inventory costs?

  A. Willingness to spend increasing amounts on inventory to decrease lost sales at a greater rate

  B. Willingness to spend increasing amounts on inventory but expect only minor changes in lost sales

  C. Unwillingness to spend increasing amounts on inventory because they see no correlation between inventory costs and the cost of lost sales

  D. Unwillingness to spend increasing amounts on inventory even though they understand that an inverse relationship exists between inventory costs and the cost of lost sales

  Correct Answer: B

• Question 162:

  Which of the following methods of payment involves complete trust in the importer given that the exporter ships the merchandise without any guarantee of payment by the importer?

  A. Open account

  B. Cash is advance

  C. Factoring

  D. Letter of credit (L/C)

  Correct Answer: A

• Question 163:

  A third-party logistics (3PL) provider is planning an expansion of its transportation-based services. Which of the following services is the 3PL likely to offer as part of this expansion?

  A. Pool distribution

  B. Inventory management

  C. Cross-docking

  D. Customs brokerage

  Correct Answer: C

• Question 164:

  Which of the following outcomes is most likely to occur if safety stock is moved from multiple warehouses to a centralized warehouse?

  A. Dependent demand will increase.

  B. Customer service levels will increase.

  C. The cost of less-than-truckload (LTL) shipments will decrease.

  D. The aggregate cost of safety stock will decrease.

  Correct Answer: B

• Question 165:

  A transportation manager is making a decision to change from common carrier to private carrier. Three key advantages of private carrier are:

  A. increased back-haul efficiency, lower transit times, and flexibility.

  B. lower freight claims, lower inventory levels, and lower fixed costs.

  C. lower transit times, flexibility, and improved customer service.

  D. increased driver turnover, lower transit times, and improved customer service.

  Correct Answer: C

• Question 166:

  Slotting criteria that firms can use to group inventory in a warehouse include product demand and:

  A. cubic dimension.

  B. customer segmentation.

  C. stock keeping unit (SKU) colors.

  D. layout strategy.

  Correct Answer: B

• Question 167:

  Which of the following components make up the fuel surcharge?

  A. Fuel peg/base, index, and ratio

  B. Fuel price, carrier efficiency, and index

  C. Fuel increase, negotiated rate, and carrier efficiency

  D. Fuel peg/base, negotiated rate, and carrier efficiency

  Correct Answer: A

• Question 168:

  A manager would like to improve labor productivity by minimizing travel time in the warehouse. Which of the following picking methods would best enable the manager to achieve this objective?

  A. Wave picking

  B. Zone picking

  C. Order picking

  D. Batch picking

  Correct Answer: B

• Question 169:

  Pre-transaction components of customer service includes organizational structure, order size constraints, system flexibility, and:

  A. inventory availability.

  B. method of ordering.

  C. availability of spares.

  D. order status information.

  Correct Answer: C

• Question 170:

  A pet food company is seeking a high-volume supplier of corn, the main ingredient in its new meat-free dog food. Due to the growth in global demand for corn, the company needs to develop a long-term relationship with a reliable producer. The key to this successful relationship is to ensure that the company:

  A. maintains the power in the relationship.

  B. has a written contract.

  C. chooses a compatible partner.

  D. establishes the relationship as a joint venture.

  Correct Answer: D