APICS cltd practice test

Climate-controlled warehouses are typically used

• A. to assure operators can work in the best conditions.
• B. for storage of food items such as pasta and sugar.
• C. for storage of raw material used in aerospace industry.
• D. for storage of certain agricultural and medical products.

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.

Consignment inventory requires that manufacturers

• A. deliver their products to the consumer and payment from consumers is based on supply.
• B. stock their products on retail stores shelves and payment from consumers is based on forecast.
• C. deliver their products to the consumer and wait for payment until consumers requires to refill stock level.
• D. stock their products on retail stores shelves and wait for payment until consumers purchase the product.

A pharmaceutical company makes drugs that control the spread of the influenza virus after outbreaks
occur Deployment to outbreak areas requires a transportation mode that is fast and provides door-
to-door connectivity. Which of the following modes of transportation should the company choose?

• A. Intermodal
• B. Truck
• C. Drone
• D. Air

Which of the following inventory ordering techniques would a company's corporate warehouse
utilize if it is interested in meeting both the quantity and timing requirements of demand from its
regional warehouses?

• A. Distribution requirements planning (DRP)
• B. Fixed order quantity/variable cycle
• C. Periodic review
• D. Kanban

A company setting up a warehouse wants to maintain a first in, first out (FIFO) stock rotation. Which
of the following storage systems should they utilize?

• A. Pallet racking
• B. Block stacking
• C. Flow racking
• D. Push-back racking

A firm offers their customers shorter order cycle times and increased product variety. Generally, this
action would have which of the following impacts on total logistics costs?

• A. Increases total logistics costs
• B. Reduces total logistics costs
• C. Has no impact on total logistics costs
• D. Only affects service levels, not costs

A third-party logistics (3PL) provider is seeking to market its value-added warehousing services to
international shippers. These services refer to activities such as:

• A. selecting the best location in the warehouse for storage and retrieval.
• B. total warehousing cost minimization on equipment, maintenance, and labor.
• C. customization services like packaging, labeling, kitting, and setting up displays.
• D. improving overall quality measured by ad-hoc metrics according to international standards.

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.

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.