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Certification in Logistics, Transportation and Distribution Questions 61–65 (page: 14)

Updated On: 9-Feb-2026

Compared to a centralized distribution network strategy, an organization using a decentralized distribution network strategy can usually expect:

  1. lower cost of lost sales and higher inventory cost
  2. higher cost of lost sales and higher inventory cost.
  3. lower cost of transportation and lower warehousing cost.
  4. higher cost of transportation and lower warehousing cost.

Answer(s): C



A company would like to eliminate unnecessary returns and/or minimize handling. It designs a process to check and screen merchandise at the entry point into the organization. This is an example of:

  1. defect reduction
  2. avoidance
  3. gatekeeping
  4. asset recovery

Answer(s): C



The scope of logistics includes transportation:

  1. order processing, inventory carrying costs, and production output.
  2. inventory carrying costs, warehousing, and cost management.
  3. manufacturing, customer accommodation, and purchasing.
  4. inventory carrying costs, order processing, and warehousing.

Answer(s): B



The surcharge applied by shipping lines to sea freight to offset adverse variation in fuel cost is called:

  1. repositioning charge
  2. peak season surcharge
  3. currency adjustment factor
  4. bunker adjustment factor

Answer(s): B



The allocation of revenues and costs to customer segments or individual customers in order to estimate segment value is known as:

  1. customer relationship management (CRM).
  2. customer profitability analysis.
  3. customer service analysis.
  4. customer standardization analysis.

Answer(s): A



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