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QUESTION NO: 1
Which of the following costs are the most intangible and subjective of all the carrying cost elements'?
A. Risk cost
B. Storage cost
C. Service cost
D. Capital cost
Answer: D
QUESTION NO: 2
A carrier receives damaged goods. What actions best describes what the carrier should do so that it is not liable for the damages?
A. Rewrite the bill of lading (B/L).
B. Make an exception note on B/L from clean to uniform.
C. Make an exception note on B/L from clean to soiled.
D. Reject the B/L.
Answer: A
QUESTION NO: 3
A logistics manager is asked to perform a total cost analysis for the organization. Which of the following trade-offs is critical to consider?
A. Inventory carrying costs vs. production costs
B. Distribution costs vs. order processing costs
C. Transportation costs vs. inventory carrying costs
D. Landed costs vs. production costs
Answer: C
QUESTION NO: 4
A logistics company operates 10 distribution centers in China totaling 20 million square meters of floor space Based on the typical utilization factors, how many total square meters are devoted to storage?
A. 5 million
B. 10 million
C. 15 million
D. 20 million
Answer: A
QUESTION NO: 5
An operations manager is concerned that the order-to-cash cycle for their largest customer is too long The manager is referring to the time that elapses from when the company receives an order from the customer until the:
A. customer processes payment.
B. warehouse is notified to ship the goods
C. customer receives that order in inventory
D. company receives payment.
Answer: C
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Updated: May 28, 2022