Free Practice Questions for APICS CLTD Exam

Question 1

Which of the following strategies would a logistics manager most likely choose in order to reduce transportation cost?

AOutsourcing

BConsolidating shipments

CEngaging in a third-party logistics (3PL) partnership

DRelying on multiple shipments

Correct Answer: D. Relying on multiple shipments

Question 2

Which of the following activities best describes the functionality of decoupling stock within firms' inventory systems?

ASeparation of the manufacturing process from order processing

BSeparation of the manufacturing process from the selling process

CMaintaining inventory to accommodate uncertainty in demand at different geographical positions

DMaintaining inventory at a central location for all stages of the value-creation process

Correct Answer: A. Separation of the manufacturing process from order processing

Question 3

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?

A5 million

B10 million

C15 million

D20 million

Correct Answer: A. 5 million

Question 4

In the economic utility function of logistics, logistics adds:

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

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

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

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

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

Question 5

A corporation is projecting annual sales at S35 million, cost of goods sold (COGS) at S25 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: D. $7.6 million.

Question 6

Random stocking can be greatly improved through the use of a(n):

Aadvanced planning system (APS).

Binventory management system (IMS).

Ctransportation management system (TMS).

Dwarehouse management system (WMS).

Correct Answer: A. advanced planning system (APS).

Question 7

Which of the following port-related issues constitutes the greatest challenge when considering the use of post-panamax container ships?

ANumber of ships available

BAvailable workforce

CRailway connections

DBridge clearance

Correct Answer: D. Bridge clearance

Question 8

Which of the following sets of elements are the major components of inventory carrying cost?

ACapital, storage space, inventory service, transportation

BStorage space, inventory service, inventory risk, transportation

CCapital, storage space, inventory service, inventory risk

DCapital, storage space inventory service, distribution

Correct Answer: C. Capital, storage space, inventory service, inventory risk

Question 9

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

AAn ability to reserve inventory and determine a delivery date

BAn ability to understand customer needs

CAn ability to plan and build loads

DAn ability to receive, enter, and validate an orders

Correct Answer: C. An ability to plan and build loads

Question 10

Which of the following types of benchmarking would a company utilize in order to determine why a significant gap exists in its order fill rates?

APerformance benchmarking

BProcess benchmarking

CProduct benchmarking

DStrategic benchmarking

Correct Answer: B. Process benchmarking