CLTD Practice Questions
Prepare for CLTD with more than an answer.
- Level
- Professional
- Valid for
- 5 years
Domains covered on the exam 9
- Logistics Overview and Strategy8%
- Capacity Planning and Demand Management9%
- Order Management10%
- Inventory Management11%
- Warehouse Management13%
- Transportation17%
- Global Logistics15%
- Logistics Network Design10%
- Sustainability and Reverse Logistics7%
- 1
Which of the following methods is used for facility location selection based on the location of markets, the volume of goods shipped, and shipping costs?
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Correct answer: D
D
- 2
A company’s distribution center receives material from a number of sources and combines them into exact quantities for a specific destination.
Which of the following functions is the distribution center providing?
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Correct answer: A
A
- 3
Procurement professional are focused on the total cost of ownership (TCO) in their vendor selection strategies. This implies that:
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Correct answer: C
C
- 4
A logistics company operates 10 distribution centers in China totaling 20 million square meters of floor space. Based on the typical utilization factors, how many total square meters are devoted to storage?
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Correct answer: A
A
- 5
A company is expanding its e-commerce business and needs to redesign its distribution network. Currently, it operates a single national distribution center (NDC). The goal is to reduce last-mile delivery costs and improve delivery times to a 2-day window nationwide. The following diagram illustrates a shift in network strategy from a centralized to a decentralized model. What is the primary trade-off associated with moving from the 'Current State' to the 'Future State'?
graph TD subgraph Current State [Centralized] NDC[National DC] NDC -- Long-Haul Parcel --> C1((Customer 1)) NDC -- Long-Haul Parcel --> C2((Customer 2)) NDC -- Long-Haul Parcel --> C3((Customer 3)) NDC -- Long-Haul Parcel --> C4((Customer 4)) end subgraph Future State [Decentralized] NDC2[National DC] subgraph RDC_West["West RDC"] direction LR W1((Cust W1)) W2((Cust W2)) end subgraph RDC_East["East RDC"] direction LR E1((Cust E1)) E2((Cust E2)) end NDC2 -- FTL --> RDC_West NDC2 -- FTL --> RDC_East RDC_West -- Short-Haul Parcel --> W1 RDC_West -- Short-Haul Parcel --> W2 RDC_East -- Short-Haul Parcel --> E1 RDC_East -- Short-Haul Parcel --> E2 endShow answer details
Correct answer: B
Moving from a centralized (single NDC) to a decentralized model (multiple Regional DCs) involves a key trade-off. According to the principle of risk pooling (square root rule), total network safety stock will increase when inventory is held in more locations, leading to higher inventory carrying costs. However, by positioning inventory closer to the customer, outbound (last-mile) transportation costs and delivery times decrease significantly. Inbound transportation to the RDCs can also be made more efficient using full truckloads (FTL).
- 6
A trucking company purchased a tractor-trailer for $150,000 to support its short-haul business. The tractor-trailer will be in service for 5 years before it will be sold at $55,000.
With annual fuel costs estimated at $12,000, what is the annual depreciation for the vehicle?
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Correct answer: C
C
- 7
A company receives automobile parts from global manufactures into its distribution center before redeploying the parts to local retail outlets.
Which of the following documents can be used to proactively plan for the redeployment of the parts?
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Correct answer: A
A
- 8
A manufacturer must consider the long-term effects of its products’ impact on the environment. A key product design consideration is:
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Correct answer: D
D
- 9
Which of the following rules specifies whether the importer is responsible for insuring cargo?
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Correct answer: A
A
- 10
Stockout frequency refers to:
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Correct answer: A
A
