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Certification in Logistics, Transportation and Distribution Questions 111–115 (page: 24)

Updated On: 9-Feb-2026

In an effort to increase their customer service levels and reduce order cycle time, a company is considering adding two additional warehouses to their overall operations.
As a result, which of the following statements best reflects the cost impact of the additional warehouses?

  1. Lower inventory costs and higher facility costs
  2. Higher inventory costs and lower facility costs
  3. Higher inventory costs and higher inbound transportation costs
  4. Lower inventory costs and lower inbound transportation costs

Answer(s): A



An oil and gas company needs to ship petrol 1,000 miles from the port on entry to an inland refinery. Which of the following modes of transportation provides the best long-term, cost-efficient solution?

  1. Rail
  2. Trucking
  3. Pipeline
  4. Barge

Answer(s): C



Which of the following types benchmarking would a company utilize in order to determine why a significant gap exists in its order fill rates?

  1. Performance benchmarking
  2. Process benchmarking
  3. Product benchmarking
  4. Strategic benchmarking

Answer(s): B



Which of the following facility location techniques is equivalent to a break-even point?

  1. Weighted-factor rating method
  2. transportation problem model
  3. Cost volume analysis
  4. Center-of-gravity method

Answer(s): C



A manager would like to insure marine cargo for a 12-month period. Which of the following policies would be best to provide coverage for all of the shipment during this period?

  1. Open
  2. Special cargo
  3. All-risks
  4. Warehouse to warehouse

Answer(s): A



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