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CTS Supply Chain & Intermodal Transportation Flashcards

6 cards from real CTS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 CTS Supply Chain & Intermodal Transportation flashcards as text

  1. In supply chain risk management, a 'single point of failure' refers to:

    Answer: Any element whose failure would halt the entire supply chain

    A single point of failure is any node or process in the supply chain whose disruption would cause the entire system to fail, making redundancy planning critical.

  2. Which document is required by U.S. Customs and Border Protection for all commercial imports and must be filed within 15 calendar days of arrival?

    Answer: Customs Entry (CF 7501)

    CBP Form 7501 (Entry Summary) is the formal import entry document that must be filed within 15 calendar days of cargo arrival to legally enter goods into U.S. commerce.

  3. A CTS analyst calculates total supply chain cost as a percentage of revenue is 12%, while the industry benchmark is 8%. What is the most strategic first step?

    Answer: Conduct a cost-to-serve analysis to identify the highest-cost segments

    A cost-to-serve analysis breaks down costs by customer, product, and channel, identifying where the gap versus benchmark is largest before implementing targeted improvements.

  4. What is the primary purpose of a Free Trade Zone (FTZ) for importers in the United States?

    Answer: To defer, reduce, or eliminate customs duties on imported goods used in manufacturing or re-exported

    FTZs allow importers to defer duty payment until goods enter U.S. commerce, reduce duties on manufactured goods, or eliminate duties entirely on re-exported merchandise.

  5. Which supply chain strategy involves maintaining extra inventory beyond expected demand to buffer against uncertainty?

    Answer: Safety stock

    Safety stock is buffer inventory held to protect against demand variability and supply uncertainty, preventing stockouts when actual conditions deviate from forecasts.

  6. In the context of Less-than-Truckload (LTL) shipping, what does 'freight class' (NMFC class) primarily determine?

    Answer: The base rate used to price the shipment

    NMFC freight class (18 classes from 50 to 500) is the primary factor used by LTL carriers to calculate the base shipping rate, reflecting density, stowability, handling, and liability.