CLP Logistics Cost Management & Financial Analysis

Question 1

What does 'Total Cost of Ownership' (TCO) in logistics include beyond the purchase price?

Accepted Answer

All costs associated with acquiring, using, and disposing of a product

Answer

Only transportation charges

Answer

Only warehousing and handling fees

Answer

Administrative overhead costs only

Question 2

Transportation costs typically represent what percentage of total logistics costs for most companies?

Accepted Answer

40–60%

Answer

5–15%

Answer

20–30%

Answer

70–80%

Question 3

What is the primary purpose of a freight audit process?

Accepted Answer

Reviewing and verifying carrier invoices for billing accuracy

Answer

Physically inspecting freight for damage upon receipt

Answer

Auditing a carrier's safety compliance record

Answer

Weighing shipments to determine the correct freight class

Question 4

Demurrage fees are charged when:

Accepted Answer

A carrier's equipment is held beyond the agreed free-time period

Answer

A shipper fails to meet minimum volume commitments

Answer

Freight is damaged during transit

Answer

A carrier exceeds the contracted delivery time

Question 5

Which of the following is considered a variable logistics cost?

Accepted Answer

Transportation fuel expenses

Answer

Long-term warehouse lease payments

Answer

Depreciation on material handling equipment

Answer

Corporate logistics management salaries

Question 6

The Economic Order Quantity (EOQ) model is designed to minimize:

Accepted Answer

Total inventory ordering and holding costs combined

Answer

Supplier lead time variability

Answer

Transportation costs per individual shipment

Answer

Number of warehouse locations needed

Question 7

A company's logistics cost ratio is best defined as:

Accepted Answer

Total logistics costs expressed as a percentage of net sales revenue

Answer

The ratio of inbound to outbound logistics costs

Answer

The percentage of orders delivered on time and in full

Answer

The cost per unit shipped compared to the industry average