CLA The Logistics Environment 3

Question 1

Which incoterm places the MAXIMUM responsibility and cost on the seller, including delivery to the buyer's named destination?

Accepted Answer

DDP (Delivered Duty Paid)

Answer

DDP requires the seller to handle all costs and risks, including import duties and delivery to the final destination—the most seller-obligated Incoterm.

Question 2

A warehouse that temporarily holds goods for sorting and immediate re-shipment without long-term storage is using which practice?

Accepted Answer

Cross-docking

Answer

Cross-docking transfers inbound freight directly to outbound vehicles with minimal or no storage time, improving speed and reducing handling.

Question 3

An Electronic Data Interchange (EDI) system in logistics is used primarily to:

Accepted Answer

Automatically exchange standardized business documents between trading partners electronically

Answer

EDI enables automated, standardized electronic exchange of business documents such as purchase orders, invoices, and advance ship notices between companies.

Question 4

Which inventory metric measures how many times a company sells and replaces its stock during a given period?

Accepted Answer

Inventory turnover

Answer

Inventory turnover (COGS ÷ average inventory) indicates how efficiently a company is selling through its stock in a given period.

Question 5

In the context of logistics carrier selection, 'transit time reliability' refers to:

Accepted Answer

The consistency with which a carrier meets its promised delivery windows

Answer

Transit time reliability (also called schedule reliability) measures how consistently a carrier delivers within the quoted time frame, not just average speed.

(CLA) Certified Logistics Associate Practice Test

(CLA) Certified Logistics Associate Practice Test

CLA The Logistics Environment 3