When defining the business requirements of a new distribution center, one of the first requirements to be considered is the:
A. type of construction material needed.
B. customer service levels to be met.
C. calculation of the planned staffing levels.
D. development of the material handling equipment lists.
Which of the following parties play an integral role during the transportation process?
A. Carriers, shippers, consignees, and financial institutions
B. Carriers, consignees, freight brokers, and financial institutions
C. general public, carriers, warehouses, and shippers
D. Government, general public, shippers, and consignees
A company wants to minimize tariff costs while avoiding the need to file for duty drawback. Which of the following practices would best achieve this objective?
A. Adopt Customs Trade Partnership Against Terrorism (C-TPAT) rules
B. Use foreign/free trade zones (FTZs)
C. Use an international third-party logistics (3PL) provider
D. Ship by free on board (FOB) terms
What facility location method has the advantage of analyzing both quantitative data and hard-to-evaluate criteria?
A. Center-of-gravity
B. Factor rating
C. Location and break-even analysis
D. Least-cost-per-lane
A company currently has a significantly long lead time in determining the disposition of returned products. Which of the following non-procedural areas should the company look into as it performs a root cause analysis?
A. Financial department to see if the sales personnel are reluctant to charge the returns to sales
B. Quality department to see if the process for determining disposition is inefficient
C. Customer service department to see if they are taking a long time to address customer concerns
D. Material handling department to see if it is taking excessive time to handle defective product
A company that utilizes barges as a major mode of transportation would typically navigate in:
A. global maritime routes
B. land bridges
C. inland waterways
D. intermodal transportation
A trucking company purchased a tractor-trailer for $150,000 to support its short-haul business. The tractor-trailer will be in service for 5 years before it will be sold at $55,000.
With annual fuel costs estimated at $12,000, what is the annual depreciation for the vehicle?
A. $7,000
B. $11,000
C. $19,000
D. $30,000
Which Incoterm ?applies only to ocean transportation where the exporter is responsible to bring the goods to the port?
A. Ex works (EXW)
B. Free alongside ship (FAS)
C. Free on board (FOB)
D. Delivered at place (DAP)
Which of the following strategies would a logistics manager most likely choose in order to reduce transportation cost?
A. Outsourcing
B. Consolidating shipments
C. Engaging in a third-party logistics (3PL) partnership
D. Relying on multiple shipments
To prevent the importing of certain luxury good so that a country can use its hard currency on essential goods, governments can refuse to issue a(n):
A. general average.
B. specific license.
C. explicit license.
D. import license.
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