A third-party logistics (3PL) provider is seeking to market its value-added warehousing services to international shippers. These services refer to activities such as:

A. selecting the best location in the warehouse for storage and retrieval.

B. total warehousing cost minimization on equipment, maintenance, and labor.

C. customization services like packaging, labeling, kitting, and setting up displays.

D. improving overall quality measured by ad-hoc metrics according to international standards.

Which Incoterm® applies only to ocean transportation where the exporter is responsible to bring the goods to the port?

A. Ex works (EXW)

B. Free alongside ship (FAS)

C. Free on board (FOB)

D. Delivered at place (DAP)

A carrier receives damaged goods. What actions best describes what the carrier should do so that it is not liable for the damages?

A. Rewrite the bill of lading (B/L).

B. Make an exception note on B/L from clean to uniform.

C. Make an exception note on B/L from clean to soiled.

D. Reject the B/L.

Which of the following prerequisites is essential in order to establish an effective order management system?

A. An ability to reserve inventory and determine a delivery date

B. An ability to understand customer needs

C. An ability to plan and build loads

D. An ability to receive, enter, and validate an orders

The practice of carriers charging all of their customers more during the peak harvest season is a type of pricing known as:

A. differential rates.

B. incremental rates.

C. distributive rates.

D. commodity rates.

Which of the following is normally within the logistics function of a manufacturing organization?

A. Production management

B. Financial management

C. Warehouse management

D. Marketing management

Which of the following statements best reflects the intent of a shipper and a carrier who are negotiating a contract utilizing the integrative bargaining technique?

A. The shipper is integrating its shipping needs and the carrier is integrating its market power to achieve better contract terms individually.

B. The shipper and the carrier are attempting to understand each other's needs to create mutually beneficial contract terms.

C. The shipper and the carrier are making an integrated effort to make extreme demands followed up by small, slow concessions.

D. The shipper and the carrier are in direct conflict with each other's goals and are attempting to take advantage of each other.

A logistics manager is asked to perform a total cost analysis for the organization. Which of the following trade-offs is critical to consider?

A. Inventory carrying costs vs. production costs

B. Distribution costs vs.order processing costs

C. Transportation costs vs. inventory carrying costs

D. Landed costs vs.production costs

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

A. distance and load size.

B. carner capacity and distance.

C. distance and carrier rates.

D. carrier rates and load size.

In a retail firm's implementation of vendor-managed inventory (VMI), what trading partners are responsible for setting target inventory levels and making restocking decisions?

A. Retail consumers and vendors

B. Retailer and its suppliers

C. Retailer and its buyers

D. Retail consumers and retailers

Which of the following theories is illustrated in the list below?
Stage 1: A new product is created to fill a domestic need and produced locally.
Stage 2: The newly created product is offered to international customers.
Stage 3: International customers develop expertise and offer the product at a lower cost to the original country.

A. International product life cycle theory

B. Porter's cluster theory

C. Sheffi's logistics cluster theory

D. Theory of Comparative Advantage

A company that distributes spare parts for the automobile industry must consider duty rates when deciding where to sell its products Duty rates are heavily influenced by:

A. the country of destination to which goods are exported.

B. the country of origin from which goods are imported.

C. the invoice value of imported goods.

D. the invoice value of exported goods.