Free CLTD Practice Questions
10 free, exam-style Certified in Logistics, Transportation and Distribution (CLTD) (CLTD) practice questions with answers and
explanations. No signup required. Work through them below, then take the
full free CLTD practice test to study every exam domain.
Question 1
A company decides to switch from air freight to ocean shipping for international orders. The MOST likely consequence of this decision is:
- Lower transportation costs and lower inventory carrying costs overall
- Higher transportation costs but lower inventory carrying costs overall
- Lower transportation costs but higher inventory carrying costs overall
- No significant impact on either transportation or inventory costs
Show answer & explanation
Correct answer: C - Lower transportation costs but higher inventory carrying costs overall
Question 2
A pharmaceutical warehouse must ensure products closest to expiration are shipped first. Which method should be used?
- FIFO (First In, First Out)
- LIFO (Last In, First Out)
- FEFO (First Expired, First Out)
- Random selection
Show answer & explanation
Correct answer: C - FEFO (First Expired, First Out)
Question 3
A company's order completeness rate is 97%, on-time delivery is 95%, damage-free rate is 99%, and documentation accuracy is 98%. The perfect order rate is approximately:
- 97.3%
- 89.3%
- 96.0%
- 92.5%
Show answer & explanation
Correct answer: B - 89.3%
Question 4
Annual demand is 10,000 units, ordering cost is $50 per order, and holding cost is $2 per unit per year. The EOQ is:
- 500 units
- 707 units
- 1,000 units
- 1,414 units
Show answer & explanation
Correct answer: B - 707 units
Question 5
A seller quotes DDP New York. The goods are damaged during ocean transit. Who bears the loss?
- The buyer, because risk transfers when goods are loaded onto the vessel at the port of origin
- The seller, because DDP risk does not transfer until delivery at the named destination
- The ocean carrier, because the carrier assumes liability for goods in transit under DDP
- Neither party - the loss is shared equally
Show answer & explanation
Correct answer: B - The seller, because DDP risk does not transfer until delivery at the named destination
Question 6
A shipper sending 15,000 lbs from Chicago to Atlanta has two options: LTL at $18/cwt or TL at $2,400 flat rate. Which is cheaper and by how much?
- LTL is cheaper by $300
- TL is cheaper by $300
- They cost the same
- TL is cheaper by $1,200
Show answer & explanation
Correct answer: B - TL is cheaper by $300
Question 7
The relationship between service level and safety stock is:
- Linear: each percentage point of improvement requires the same additional stock
- Non-linear: each incremental improvement requires disproportionately more stock
- Logarithmic: improvements are proportional to the log of the stock investment
- Stepped: safety stock increases only at predefined service tier breakpoints
Show answer & explanation
Correct answer: B - Non-linear: each incremental improvement requires disproportionately more stock
Question 8
A company's marketing team projects demand of 100,000 units next quarter, but operations can only produce 80,000. During S&OP, the BEST approach is to:
- Adjust the demand plan downward to match the 80,000-unit production capacity
- Evaluate tradeoffs such as overtime, outsourcing, demand shaping, or inventory buildup
- Prioritize the highest-margin products to maximize revenue within the constraint
- Authorize operations to exceed capacity targets by scheduling continuous overtime shifts
Show answer & explanation
Correct answer: B - Evaluate tradeoffs such as overtime, outsourcing, demand shaping, or inventory buildup
Question 9
A company currently holds $2,000,000 in total inventory across 16 warehouses. Using the square root rule, approximately how much total inventory would be needed if the company consolidates to 4 warehouses?
- $500,000
- $1,000,000
- $1,500,000
- $2,000,000
Show answer & explanation
Correct answer: B - $1,000,000
Question 10
A shipment weighs 50 kg but has a dimensional weight of 80 kg. Under dimensional weight pricing, the carrier will charge based on:
- 50 kg (actual weight)
- 80 kg (dimensional weight)
- 65 kg (average of both)
- 130 kg (sum of both)
Show answer & explanation
Correct answer: B - 80 kg (dimensional weight)
What's on the CLTD exam
The Certified in Logistics, Transportation and Distribution (CLTD) (CLTD) exam is organized into 9 knowledge domains. These free practice questions are drawn from across them so you can see where you're strong and where to study:
- Logistics Overview and Strategy
- Logistics Network Design
- Reverse Logistics and Sustainability
- Capacity Planning and Demand Management
- Order Management
- Inventory Management
- Warehouse Management
- Transportation
- Global Logistics Considerations