Logistics Environment Flashcards
7 cards from real CLA practice questions. Tap to flip, then mark Knew It or Still Learning โ missed cards come back until you master them.
Read the first 7 Logistics Environment flashcards as text
What is the purpose of an Incoterm in international trade?
Answer: To define the responsibilities, costs, and risks between buyer and seller in international trade
Incoterms are standardized trade terms published by the ICC that clarify who bears costs, risks, and responsibilities at each stage of international shipment.
Which mode of transportation typically offers the lowest cost per ton-mile for bulk commodities?
Answer: Rail
Rail transportation generally provides the lowest cost per ton-mile for bulk commodities due to its high carrying capacity and fuel efficiency.
In warehousing, what does 'slotting' refer to?
Answer: Strategically assigning products to specific storage locations to maximize efficiency
Slotting is the process of organizing a warehouse by placing products in optimal locations based on factors like pick frequency and product velocity.
What does 'safety stock' represent in inventory management?
Answer: Extra inventory held as a buffer against demand variability or supply disruptions
Safety stock is buffer inventory maintained to protect against unexpected demand spikes or delays in supply replenishment.
Which of the following best describes a 'free trade zone' (FTZ) in the U.S. context?
Answer: A secured area considered outside of U.S. Customs territory where goods can be stored or processed with deferred duties
A U.S. Foreign Trade Zone (FTZ) allows businesses to store, process, or manufacture goods with customs duties deferred until the goods enter U.S. commerce.
What is the key difference between 'Less-than-Truckload' (LTL) and 'Full Truckload' (FTL) shipping?
Answer: LTL consolidates shipments from multiple shippers into one truck, while FTL dedicates an entire truck to one shipper
LTL consolidates smaller shipments from multiple shippers into a single truck, while FTL dedicates the full truck capacity to one shipper's load.
Which metric is used to measure how efficiently a warehouse fills orders accurately?
Answer: Order fill rate / order accuracy rate
Order accuracy rate (or fill rate) measures the percentage of orders picked and shipped without errors, reflecting warehouse fulfillment efficiency.