CERTIFIED IN LOGISTICS,
TRANSPORTATION & DISTRIBUTION
(CLTD) EXAM Question And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A Instant Download
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1. The primary objective of logistics management is to
A. Minimize transportation costs only
B. Maximize inventory levels
C. Improve supplier power
D. Provide the right product at the right place, time, and cost
Rationale: Logistics integrates transportation, warehousing, inventory,
and information to meet customer requirements efficiently.
2. Transportation mode best suited for high-value, time-sensitive goods is
A. Rail
B. Truck
C. Air
D. Pipeline
Rationale: Air transport offers the fastest transit time, ideal for urgent and
high-value shipments.
3. Incoterms primarily define
A. Payment methods
B. Product specifications
C. Responsibilities for risk, cost, and delivery
, D. Customs duty rates
Rationale: Incoterms clarify buyer and seller obligations in international
trade.
4. A bill of lading serves as
A. Insurance certificate
B. Contract of carriage and receipt of goods
C. Sales invoice
D. Packing list
Rationale: The bill of lading is both a receipt and a legal transportation
contract.
5. The main function of a distribution center is to
A. Manufacture products
B. Store raw materials long term
C. Facilitate product flow to customers
D. Handle product returns only
Rationale: Distribution centers focus on rapid movement and order
fulfillment.
6. Which inventory strategy reduces holding costs but increases stockout risk?
A. Safety stock
B. Just-in-Time (JIT)
C. ABC analysis
D. Cycle counting
Rationale: JIT minimizes inventory levels, reducing carrying costs.
7. The “perfect order” metric measures
A. Order size accuracy
B. Transportation speed
C. Orders delivered complete, on time, damage-free, and with correct
documentation
D. Warehouse productivity
Rationale: Perfect order reflects total customer service performance.
, 8. Which mode is most energy efficient per ton-mile?
A. Truck
B. Air
C. Rail
D. Courier
Rationale: Rail transport consumes less fuel per ton-mile than most
modes.
9. A third-party logistics provider (3PL) primarily offers
A. Manufacturing services
B. Retail sales
C. Outsourced logistics and transportation services
D. Product design
Rationale: 3PLs manage logistics functions on behalf of shippers.
10.Cross-docking reduces
A. Transportation time
B. Packaging costs
C. Storage and handling costs
D. Customs delays
Rationale: Cross-docking minimizes warehousing by transferring goods
directly to outbound transport.
11.The key purpose of demand forecasting is to
A. Increase production costs
B. Align supply with expected customer demand
C. Eliminate inventory
D. Reduce labor
Rationale: Accurate forecasting supports efficient planning and service
levels.
12.Which document is required for customs clearance?
A. Delivery note
TRANSPORTATION & DISTRIBUTION
(CLTD) EXAM Question And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A Instant Download
1. The primary objective of logistics management is to
A. Minimize transportation costs only
B. Maximize inventory levels
C. Improve supplier power
D. Provide the right product at the right place, time, and cost
Rationale: Logistics integrates transportation, warehousing, inventory,
and information to meet customer requirements efficiently.
2. Transportation mode best suited for high-value, time-sensitive goods is
A. Rail
B. Truck
C. Air
D. Pipeline
Rationale: Air transport offers the fastest transit time, ideal for urgent and
high-value shipments.
3. Incoterms primarily define
A. Payment methods
B. Product specifications
C. Responsibilities for risk, cost, and delivery
, D. Customs duty rates
Rationale: Incoterms clarify buyer and seller obligations in international
trade.
4. A bill of lading serves as
A. Insurance certificate
B. Contract of carriage and receipt of goods
C. Sales invoice
D. Packing list
Rationale: The bill of lading is both a receipt and a legal transportation
contract.
5. The main function of a distribution center is to
A. Manufacture products
B. Store raw materials long term
C. Facilitate product flow to customers
D. Handle product returns only
Rationale: Distribution centers focus on rapid movement and order
fulfillment.
6. Which inventory strategy reduces holding costs but increases stockout risk?
A. Safety stock
B. Just-in-Time (JIT)
C. ABC analysis
D. Cycle counting
Rationale: JIT minimizes inventory levels, reducing carrying costs.
7. The “perfect order” metric measures
A. Order size accuracy
B. Transportation speed
C. Orders delivered complete, on time, damage-free, and with correct
documentation
D. Warehouse productivity
Rationale: Perfect order reflects total customer service performance.
, 8. Which mode is most energy efficient per ton-mile?
A. Truck
B. Air
C. Rail
D. Courier
Rationale: Rail transport consumes less fuel per ton-mile than most
modes.
9. A third-party logistics provider (3PL) primarily offers
A. Manufacturing services
B. Retail sales
C. Outsourced logistics and transportation services
D. Product design
Rationale: 3PLs manage logistics functions on behalf of shippers.
10.Cross-docking reduces
A. Transportation time
B. Packaging costs
C. Storage and handling costs
D. Customs delays
Rationale: Cross-docking minimizes warehousing by transferring goods
directly to outbound transport.
11.The key purpose of demand forecasting is to
A. Increase production costs
B. Align supply with expected customer demand
C. Eliminate inventory
D. Reduce labor
Rationale: Accurate forecasting supports efficient planning and service
levels.
12.Which document is required for customs clearance?
A. Delivery note
