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Certification in Logistics, Transportation and Distribution Questions 106–110 (page: 23)

Updated On: 9-Feb-2026

What facility location method has the advantage of analyzing both quantitative data and hard-to-evaluate criteria?

  1. Center-of-gravity
  2. Factor rating
  3. Location and break-even analysis
  4. Least-cost-per-lane

Answer(s): B



A company currently has a significantly long lead time in determining the disposition of returned products. Which of the following non-procedural areas should the company look into as it performs a root cause analysis?

  1. Financial department to see if the sales personnel are reluctant to charge the returns to sales
  2. Quality department to see if the process for determining disposition is inefficient
  3. Customer service department to see if they are taking a long time to address customer concerns
  4. Material handling department to see if it is taking excessive time to handle defective product

Answer(s): D



A company wants to minimize tariff costs while avoiding the need to file for duty drawback. Which of the following practices would best achieve this objective?

  1. Adopt Customs Trade Partnership Against Terrorism (C-TPAT) rules
  2. Use foreign/free trade zones (FTZs)
  3. Use an international third-party logistics (3PL) provider
  4. Ship by free on board (FOB) terms

Answer(s): D



Which of the following parties play an integral role during the transportation process?

  1. Carriers, shippers, consignees, and financial institutions
  2. Carriers, consignees, freight brokers, and financial institutions
  3. general public, carriers, warehouses, and shippers
  4. Government, general public, shippers, and consignees

Answer(s): C



When defining the business requirements of a new distribution center, one of the first requirements to be considered is the:

  1. type of construction material needed.
  2. customer service levels to be met.
  3. calculation of the planned staffing levels.
  4. development of the material handling equipment lists.

Answer(s): C



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