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Certification in Logistics, Transportation and Distribution Questions 86–90 (page: 19)

Updated On: 9-Feb-2026

Which of the following outcomes is a potential advantage of operating an efficient reverse logistics process?

  1. Provides competitive differentiation
  2. Enables visibility throughout the supply chain
  3. Improves the product life cycle
  4. Reduces transportation costs

Answer(s): A



The key factors in modal determination when comparing the trade-off between cost and service include:

  1. distance and load size.
  2. carrier capacity and distance.
  3. distance and carrier rates.
  4. carrier rates and load size.

Answer(s): D



Which of the following statements best describes the primary objective of most warehouses?

  1. Provide additional storage to excess inventory and avoid its disposal
  2. Ensure that inventory levels are in accordance with the company's financial target
  3. Accurately reflect the company's working capital status
  4. Facilitate the movement of goods through the supply chain to the end consumer

Answer(s): C



A carrier takes three weeks to deliver a product which has average sales of 1,000 units per week. The unit cost is $20 each and the carrying cost is 15%. What is the savings in the transportation inventory cost if management decides to change the mode of transportation to decrease time to one week?

  1. $2,000
  2. $3,000
  3. $6,000
  4. $9,000

Answer(s): C



Which of the following methods is used for facility location selection based on the location of markets, the volume of goods shipped, and shipping costs?

  1. Factor rating
  2. Center-of-gravity
  3. Break-even analysis
  4. Least cost

Answer(s): D



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