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Certification in Logistics, Transportation and Distribution Questions 66–70 (page: 15)

Updated On: 9-Feb-2026

A major retailer has informed a product manufacturer that they must take back all of their dunnage. The manufacturer's major decision in implementing reverse logistics will most likely be to:

  1. manage the process internally or outsource to a third party.
  2. take back the dunnage or tell the retailer to destroy it all.
  3. reduce packaging materials to save money but risk more damage.
  4. increase the selling price to the retailer to cover increased costs.

Answer(s): A



Which of the following terms refer to the contract leasing of an airplane where only the equipment, maintenance, and insurance are include?

  1. Wet lease
  2. Dry lease
  3. Damp lease
  4. ACMI lease

Answer(s): A



A company is considering implementing collaborative planning, forecasting, and replenishment (CPFR). Which of the following statements best reflects one of the objectives of CPFR?

  1. It represents a sequence of business processes between consumers and retailers.
  2. It replaces traditional forecasting methods with a shared single forecast among trading partners.
  3. It represents a sequence of business processes within the manufacturing environment.
  4. It replaces traditional inventory management procedures with a vendor-managed (VMI) system.

Answer(s): A



A transportation manager is interested in selecting the optimal mode of transportation based on 3 key criteria: speed, availability, and dependability.
Which of the following modes best meets the criteria?

  1. Truck and rail
  2. truck and air
  3. Air and rail
  4. Air and ocean

Answer(s): C



A company is sending a shipment to its customer in Italy. It elects to pay the freight and be responsible for any liability and damage claims. Which of the following free on board (FOB) terms is the company using?

  1. FOB destination, freight collect
  2. FOB destination, freight prepaid
  3. FOB origin, freight prepaid
  4. FOB origin, freight collect

Answer(s): B



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