CTS CTS Supply Chain & Intermodal Transportation 3

Question 1

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

Accepted Answer

Any element whose failure would halt the entire supply chain

Answer

A driver who is the only one qualified on a specific route

Answer

A warehouse that handles only one product line

Answer

A carrier that serves a single lane

Question 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?

Accepted Answer

Customs Entry (CF 7501)

Answer

Shipper's Export Declaration

Answer

Certificate of Origin

Answer

Commercial Invoice only

Question 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?

Accepted Answer

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

Answer

Immediately switch all carriers to the cheapest available

Answer

Reduce safety stock to zero to lower inventory carrying costs

Answer

Outsource all warehousing to cut fixed costs

Question 4

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

Accepted Answer

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

Answer

To avoid all state sales taxes permanently

Answer

To bypass FDA inspection requirements

Answer

To store hazardous materials without EPA oversight

Question 5

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

Accepted Answer

Safety stock

Answer

Just-in-time (JIT)

Answer

Vendor-managed inventory (VMI)

Answer

Consignment inventory

Question 6

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

Accepted Answer

The base rate used to price the shipment

Answer

The maximum transit time allowed

Answer

The carrier's liability limit per shipment

Answer

The required packaging type