EMT Practice Test

1. Question Content...

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Question1: Major retailers place pressure on a manufacturer of liquid laundry products made with water to reduce the amount of water content by half. While the result will bring savings in almost every area, where should the manufactures focus this green initiative improvement effort?

Question2: 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?

Question3: A company currently has a significantly long lead time in determining the disposition of returned products.
Which of the following non-procedural areas should the company look into as it performs a root cause analysis?

Question4: Compared to a centralized distribution network strategy, an organization using a decentralized distribution network strategy can usually expect:

Question5: Which of the following groups was formed for the purpose of eliminating the trade barriers among its members?

Question6: What facility location method has the advantage of analyzing both quantitative data and hard-to-evaluate criteria?

Question7: A tracking company picks up a shipment and takes it to a terminal where it is consolidated with over shipments going to the same city.
This trucking company is most likely a:

Question8: Which of the following items undermines the attempts to simplify transportation pricing?

Question9: What may be the cause if the value of inventory is greater than the value of the net working capital?

Question10: A manufacturer must consider the long-term effects of its products' impact on the environment. A key product design consideration is:

Question11: A company would like to encourage shippers to partner on sustainability initiatives. Which of the following rates would best meet this objective?

Question12: A document that serves as a contract, a receipt, and a certificate of title in an international transaction is known as a:

Question13: A logistics manager is developing a supply chain risk management plan incorporating contingency plans for alternatives to transport failures. Which of the following factors best represents this approach?

Question14: A company wishes to ship large quantities via ocean freight, utilizing the entire vessel capacity. The most appropriate contract of carriage to use a:

Question15: A logistic team has developed new packaging for their best-selling product that reduces the packaging costs by 60% and the overall package size by 25%. The material can no longer be stacked on pallets and must be shipped and stored in non-stackable, returnable plastic bins.
Which of the following statements bests represents the potential trade-offs of implementing this change?

Question16: Which of the following costs represents an example of a fixed cost in the motor carrier industry?

Question17: Triple bottom line (TBL) refers to balancing the following impacts:

Question18: The allocation of revenues and costs to customer segments or individual customers in order to estimate segment value is known as:

Question19: While designing a logistics network, which of the following actions does a manager need to complete in order to identify the key logistics goals and perform benchmark analysis?

Question20: An organization encourages proactive internal design efforts and collaboration with supply chain partners in order to consume less raw materials. This business practice reflects which of the following dimensions of sustainability?

Question21: Procurement professional are focused on the total cost of ownership (TCO) in their vendor selection strategies. This implies that:

Question22: If a firm is concerned with high duty rates, on which of the following criteria should it focus?

Question23: In warehouse operations, picking process occurs when:

Question24: Which of the following outcomes of warehouse operations is the most critical in designing a warehouse?

Question25: An international organization has a pricing strategy that allows it to sell its product at different prices depending on the country where the product is sold.
Which of the following unintended consequences is a result of this strategy?

Question26: Which of the following measures would a company use in attempting to improve its customer service dimension of dependability?

Question27: A supply chain manager would like to guard against potential shortage in their company's manufacturing capacity. Which of the following areas of supply chain risk should the manager pay most attention to?

Question28: A major retailer has informed a product manufacturer that they must take back all of their dunnage. The manufacturer's major decision in implementing reverse logistics will most likely be to:

Question29: 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:

Question30: 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?

Question31: Which of the following inventory cost elements is the most difficult to quantify?

Question32: 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?

Question33: In building a daily route schedule, which of the following factors provides the greatest challenge for a transportation manager?

Question34: Which of the following statements best describes the relationship between order cycle time and inventory?

Question35: A company is sending a shipment to its customer in Italy. It elects to pay the freight and be responsible for any liability and damage claims. Which of the following free on board (FOB) terms is the company using?

Question36: A vessel operating under the threat of piracy or hostile military action is protected by the:

Question37: Which of the following costs are the most intangible and subjective of all the carrying cost elements?

Question38: The primary role of the World Trade Organization (WTO) is to:

Question39: A planning process specifically designed to balance demand and supply within an organization and arrive at a consensus forecast is known as:

Question40: As a means to protect domestic industries, which of the following requirements is an example of a non- trade barrier?

Question41: Which of the following facility location techniques is equivalent to a break-even point?

Question42: Which of the following factors would be the greatest challenge for a firm planning to ship goods internationally by truck?

Question43: The primary factor that reduces the need for companies to improve transportation sustainability is:

Question44: Random stocking can be greatly improved through the use of a(n):

Question45: Which of the following strategies would a logistics manager most likely choose in order to reduce transportation cost?

Question46: Which of the following components represents the best opportunity to improve the effectiveness of an order cycle?

Question47: A company finds itself constantly expending its customer's retail store deliveries in order to prevent stock- outs. The best solution to this problem is to:

Question48: A company desires to improve its cash flow situation by postponing its customs duties payment until the last possible point in the supply chain.
The company should consider using which type of warehouse?

Question49: A logistics manager has received a lot of customer complaints concerning damaged products. This represents which of the following customer service dimensions?

Question50: 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?

Question51: A company is considering implementing collaborative planning, forecasting, and replenishment (CPFR).
Which of the following statements best reflects one of the objectives of CPFR?

Question52: 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:

Question53: A company would like to implement a strategic initiative of enhancing its reverse logistics process. Which of the following statements best describes the profitability impact of such a strategy?

Question54: The practice of carriers charging all of their customers more during the peak harvest season is a type of pricing known as:

Question55: A company that utilizes barges as a major mode of transportation would typically navigate in:

Question56: When defining the business requirements of a new distribution center, one of the first requirements to be considered is the:

Question57: When a company decides not to purchase insurance to cover a risk, it is pursuing what type of risk strategy?

Question58: According to the SCOR model, the five major categories of metrics that should be used to measure the performance of Process D1: Deliver Stocked Product include assets, costs, flexibility:

Question59: A company that ships self-propelled cargo and prefers not to utilize specialized lifting equipment should consider which of the following types of shipping vessels?

Question60: 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?

Question61: In addition to order placement and order processing, which of the following steps are part of the order management process?

Question62: Which of the following parties play an integral role during the transportation process?

Question63: A corporation is redesigning its warehouse and has decided to use a rack system that allows each level to be accesses individually by placing pallets on wheeled frames. The rack system that best meets this criteria is:

Question64: A company wants to minimize tariff costs while avoiding the need to file for duty drawback. Which of the following practices would best achieve this objective?

Question65: What is the primary value-added service that a company would receive from using land-bridge services?

Question66: 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?

Question67: The international commercial document that serves as a quote to obtain a letter of credit or an import license is called a(n):

Question68: Which of the following situations best describes when duty drawbacks can be granted?

Question69: Which of the following activities best describes the functionality of decoupling stock within firms' inventory systems?

Question70: Excluding cost, which of the following sets of criteria describes the primary drivers for transportation mode selection?

Question71: The scope of logistics includes transportation:

Question72: Which of the following facility location techniques is equivalent to a break-even point?

Question73: Which of the following types benchmarking would a company utilize in order to determine why a significant gap exists in its order fill rates?

Question74: A logistics service provider has an average on-time delivery of 30%, and average correct documentation of
30%. Which of the following values represents the probability that the next delivery would be on-time, damage free, and with correct documentation?

Question75: When looking at on organization's logistics system, which of the following expenses is the single largest variable cost?

Question76: A developing country would like to improve its trade relations with Europe by updating its port infrastructure. Which international organization would help fund the project?

Question77: Which Incoterm ® applies only to ocean transportation where the exporter is responsible to bring the goods to the port?

Question78: Higher throughput operations enable private warehouses to:

Question79:
A company has prioritized A, B, and C, filling orders in that sequence. What are the impact to customer service levels for customers B and C?

Question80: To prevent the importing of certain luxury good so that a country can use its hard currency on essential goods, governments can refuse to issue a(n):

Question81: 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:

Question82: Which of the following modes of transportation is characterized as having the highest fixed cost and lowest variable cost?

Question83: A transportation manager is interested in selecting the optimal mode of transportation based on 3 key criteria: speed, availability, and dependability.
Which of the following modes best meets the criteria?

Question84: 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?

Question85: Which of the following forms of supply chain risk is considered the most disruptive?

Question86: Net advantages gained by the sharing of common locations by similar enterprises is based on which of the following terms?

Question87: Which of the following is normally within the logistics function of a manufacturing organization?

Question88: 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?

Question89: The surcharge applied by shipping lines to sea freight to offset adverse variation in fuel cost is called: