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Question # 4

A non-profit transportation membership cooperative that arranges for the domestic or international shipment of member's cargo over any mode of transportation is known as a(n):

A.

freight bureau.

B.

freight broker association.

C.

shippers association.

D.

integrated service provider.

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Question # 5

An ocean carrier's goal of maximizing total revenue of the entire ship by offering very competitive rates that cover their variable costs and then increasing rates according to what the traffic will bear is referred to as:

A.

any-quantity service rate.

B.

value of service rate.

C.

limited service rate.

D.

incentive rate.

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Question # 6

A company has prioritized customers A. B, and C. filling orders in that sequence. What are the impacts to customer service levels for customers B and C?

A.

100% service levels for B and C

B.

Customer B has higher service level

C.

Customer C has higher service level

D.

Customer B and C have same service level

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Question # 7

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.

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Question # 8

A company that utilizes barges as a major mode of transportation would typically navigate in:

A.

global maritime routes.

B.

land bridges.

C.

inland waterways.

D.

intermodal transportation.

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Question # 9

Which of the following terms of payment should an international purchasing manager use to guarantee that the shipment is made and the shipper gets paid for their product?

A.

Letter of credit

B.

Open account

C.

Sight draft

D.

Cash in advance

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Question # 10

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

A.

A manufacturerminimallytransforms imports, making products that are then exported.

B.

A distributor resells imported products.

C.

All of the raw materials are imported a product is created, and then sold domestically.

D.

An exported product has significant domestic content.

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Question # 11

Which of the following terms refers to an integrated approach of simultaneously selling to consumers through multiple distribution channels?

A.

Omni-channel

B.

Multi-channel

C.

Business-to-consumer (B2C)

D.

E-commerce

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Question # 12

Which of the following forms of supply chain risk is considered the most disruptive?

A.

Supply

B.

Process

C.

Finance

D.

Environment

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Question # 13

A corporation is redesigning its warehouse and has decided to use a rack system that allows each level to be accessed individually by placing pallets on wheeled frames. The rack system that best meets this criteria is:

A.

flow-through.

B.

push-back.

C.

drive-in.

D.

double-deep.

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Question # 14

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

A.

economic, social, and environmental.

B.

environmental, ecological,and ethical.

C.

social environmental,and regulatory.

D.

financial, economic, and social.

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Question # 15

Which of the following groups was formed for the purpose of eliminating the trade barriers among its members?

A.

United Nations (UN)

B.

European Union (EU)

C.

Organization of Petroleum Exporting Countries (OPEC)

D.

North Atlantic Treaty Organization (NATO)

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Question # 16

A transit privilege permits a shipper to:

A.

enter a foreign/free trade zone (FTZ) to perform transportation services.

B.

avoid paying tariffs to local authorities.

C.

temporarily stop a shipment to physically transform products.

D.

stop at any port of call without prior notification.

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Question # 17

Airfreight companies often use dimensional (dim) weight to cost out shipments because of which of the following attributes of the product?

A.

Density

B.

Height

C.

Weight

D.

Value

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Question # 18

A company would like to eliminate unnecessary returns and/or minimize handling It designs a process to check and screen merchandise at the entry point into the organization This is an example of:

A.

defect reduction.

B.

avoidance.

C.

gatekeeping.

D.

asset recovery.

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Question # 19

A company setting up a warehouse wants to maintain a first in, first out (FIFO) stock rotation. Which of the following storage systems should they utilize?

A.

Pallet racking

B.

Block stacking

C.

Flow racking

D.

Push-back racking

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Question # 20

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

A.

Carriers, shippers, consignees, and financial institutions

B.

Carriers, consignees, freight brokers, and financial institutions

C.

General public, carriers, warehouses, and shippers

D.

Government, general public, shippers, and consignees

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Question # 21

A motor carrier is in a dispute with a customer over who is responsible for unloading goods at the customer's location. Which of the following documents would be used to resolve the dispute?

A.

Freight bill

B.

Bill of lading (B/L)

C.

Routing guide

D.

Domestic terms of sale

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Question # 22

One characteristic that could make it challenging for a foreign company to penetrate the United States (U S.) market is that the U.S. often has:

A.

refused to cooperate on sustainability initiatives.

B.

adopted multiple standards that are state specific.

C.

eliminated all foreign/free trade zones (FTZs) outside of sea ports.

D.

followed Customs Trade Partnership Against Terrorism (C-TPAT) rules.

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