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Certification in Logistics, Transportation and Distribution Questions 126–130 (page: 27)

Updated On: 9-Feb-2026

Which of the following inventory cost elements is the most difficult to quantify?

  1. Unit cost
  2. Cost of reordering
  3. Carrying cost
  4. Shortage cost

Answer(s): D



Which of the following statements best describes the relationship between order cycle time and inventory?

  1. The shorter the order cycle length, the more inventory is required to be held
  2. The shorter the order cycle length, the less inventory is required to be held
  3. The longer the order cycle length, the less inventory is required to be held
  4. The changes made to the order cycle has little/no impact on inventory levels

Answer(s): C



As a means to protect domestic industries, which of the following requirements is an example of a non-trade barrier?

  1. Requesting a mandatory consular invoice
  2. Utilizing Convention on International Sale of Goods (CISG)
  3. Mandating compliance with triple bottom line (TBL)
  4. Demanding process efficiency

Answer(s): C



Which of the following situations best describes when duty drawbacks can be granted?

  1. A manufacturer minimally transforms imports, making products that are then exported.
  2. A distributor resells imported products.
  3. All of the raw materials are imported, a product is created, and then sold domestically.
  4. An exported product has significant domestic content.

Answer(s): A



Triple bottom line (TBL) refers to balancing the following impacts:

  1. economic, social, and environmental.
  2. environmental, ecological, and ethical.
  3. social, environmental, and regulatory.
  4. financial, economic, and social.

Answer(s): A



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