EXAM CONTENT

MANUAL
VERSION 1.0
 APICS
Certified in Logistics, Transportation
and Distribution
Exam Content Manual
Version 1.0
Visit apics.org/ecmerrata for APICS CLTD Exam Content Manual errata.
Internet links cited in the bibliographic references can be found in a more usable format on the
APICS website at apics.org/CLTD.

The references in this manual have been selected solely on the basis of their educational value to
the APICS CLTD certification program and on the content of the material. APICS does not endorse
any services or other materials that may be offered or recommended by the authors or publishers of
books and publications listed in this manual.

©2016 APICS

8430 West Bryn Mawr Avenue, Suite 1000

Chicago, IL 60631-3439 USA
Phone: 1-800-444-2742 or +1-773-867-1777
Fax: +1-773-639-3000

No portion of this document may be reproduced under any circumstances. CLTD is a trademark of
APICS.

Stock #09160-V10
Table of Contents
Letter to Candidates ................................................................................................................ 1
Introduction .............................................................................................................................. 2
About the APICS CLTD Examination ........................................................................................ 2
Question Format ............................................................................................................................... 2
Taking the Test .................................................................................................................................. 3
Interpreting Test Scores ................................................................................................................... 3
Studying for the APICS CLTD Exam ......................................................................................... 3
APICS CLTD References.................................................................................................................... 4
Terminology ....................................................................................................................................... 4
Additional Resources for APICS CLTD Candidates ................................................................ 4
APICS CLTD Learning System ........................................................................................................... 4
APICS CLTD Instructor-Led Review Courses .................................................................................... 5
APICS Educational Programs............................................................................................................ 5
APICS CLTD Certification Maintenance: Continuing Professional Development ................. 5
The Importance of Certification Maintenance ................................................................................ 5
APICS Code of Ethics ............................................................................................................... 6
APICS Certified in Logistics, Transporation and Distribution (CLTD) .................................... 7
Scope of the Subject Matter............................................................................................................. 7
APICS CLTD Content ......................................................................................................................... 9
Content Outline ................................................................................................................................. 9
Key Terminology .............................................................................................................................. 23
Bibliography ..................................................................................................................................... 25
Sample Questions .................................................................................................................. 26
Answers to Sample Questions .............................................................................................. 28

CLTD Exam Content Manual i

 This APICS CLTD Exam Content Manual (ECM)
Letter to Candidates provides you with an overview of the program,
an outline of its body of knowledge, key
Dear Candidate: terminology, and recommended references.
The outline is divided into the following eight
Congratulations! On behalf of APICS and the diagnostic areas with the relative emphasis of
members of the Certified in Logistics, each area indicated by the percentage figure:
Transportation and Distribution (CLTD)
Subcommittee, I would like to thank you for  Logistics and Supply Chain Overview
your expressed interest in the APICS inaugural (8%)
certification program in the field of logistics,  Capacity Planning and Demand
transportation and distribution. Management (8%)
 Order Management (10%)
The new CLTD certification is designed to  Inventory and Warehouse
provide a body of knowledge, technology Management (17%)
know-how, and standards for those in the  Transportation (22%)
logistics, transportation and distribution  Global Logistics Considerations (17%)
industries. Created as a result of the recent  Logistics Network Design (10%)
merger between APICS and the American  Reverse Logistics and Sustainability
Society of Transportation and Logistics (8%)
(AST&L), the APICS CLTD sets the global
standard for logistics best practices and A sample of ten questions is provided to
assists employers in developing the personnel illustrate the type of questions you will
needed to meet customer demand. As one of encounter on the exam. We recommend the
the fastest growing industries in the world, APICS CLTD ECM as one of your references as
transportation and logistics remains the you prepare for the CLTD exam.
second largest employment sector in the
United States, employing over six million We wish you every success in the pursuit of
people, and projected to generate almost your CLTD designation.
300,000 new jobs through 2018.

The APICS CLTD certification supersedes

AST&L’s Certified in Transportation and
Logistics (CTL) program and is aimed to lessen
the impact of the logistics industry’s skill gaps.
The program takes an end-to-end supply chain Yemisi A. Bolumole, Ph.D., CTL
view of logistics operations, extending from CLTD Subcommittee Chair
inbound materials management, outbound
distribution, and reverse logistics, to
encompass all the integrative process steps
that define supply chain logistics. The APICS
CLTD certificate program provides you with the
knowledge to effectively manage the
integration of these activities to maximize a
company’s value chain. By earning the APICS
CLTD designation, you will have demonstrated
the mastery of logistics best practices.

CLTD Exam Content Manual 1

Introduction About the APICS CLTD
This Exam Content Manual provides guidance
Examination
for individuals preparing for the CLTD
The APICS CLTD examination consists of 150
certification examination. The objective of this multiple-choice questions, of which 20 are
manual is to outline the APICS CLTD tested pre-test questions that do not contribute to
body of knowledge. the total score, but are necessary for research
purposes. Candidates should answer all exam
The main section of this manual begins with a
questions. There is a 3 ½ -hour time limit for
statement about the scope of the subject the exam.
matter, followed by a descriptive outline of the
content. Key terminology and a bibliography of
For more information about testing and
suggested references are provided. The
registration policies and procedures, call
section concludes with sample questions
APICS Customer Service at 1-800-444-2742
similar to those that appear on the
(United States and Canada) or
examination, correct answers for the sample
+1-773-867-1777.
questions, and brief explanations as to why
they are correct.
Question Format
The recommended procedure for mastering All of the questions on the CLTD examination
the subject matter is to: are intended to test one's understanding of
the CLTD body of knowledge. In addition, it is
 review the content outline, which helpful to understand the various formats of
defines the scope of the material. questions on the examination. The following
 study each topic, using the suggested three examples illustrate the types of multiple
references. choice questions found on the examination:

At the end of each major section is a list of the For Example 1, choose the response that best
references that apply to the topics in that completes the statement.
section. The first number indicates the
sequence number for the reference in the Example 1: The 80-20 rule is an
bibliography section and the numbers in application of:
parentheses indicate the relevant chapters
within that reference. A. statistical process control
B. defect measurement
Candidates should understand the definitions C. root cause analysis
of key terminology and the application of the D. Pareto analysis
outlined tools, processes, and techniques. (The correct answer is D.)

Sufficient references are given that provide

different approaches to the material covered
in each diagnostic area and different styles of
presenting the information. Reading
periodicals, such as APICS magazine and the
APICS Supply Chain Management Now
E-newsletter, will also help you keep up-to-
date about changes in the industry.

2 ©APICS
For Example 2, choose the response that best assuming information not given, as well as
answers the question. assuming you know what is being asked
without reading the question completely, or
Example 2: Which of the following is used “second guessing” the question. Every effort
as a key performance indicator (KPI) to has been made to avoid misleading wording
measure variability of demand through the and to provide sufficient information for each
supply chain? question.

A. bullwhip effect Choose the best answer from the choices

B. fill rate given. Care has been taken to avoid
C. inventory turns misleading choices. Do not look for hidden
D. internal failure tricks or exceptions to the norm. For each
(The correct answer is A.) question, one and only one of the four choices
represents the correct answer.
For Example 3, evaluate the statements and
provide the most appropriate response. The Once you begin the test, approach the
answer is not one person’s opinion; it is the questions in order, but do not waste time on
accepted choice according to the APICS body those that are unfamiliar or seem difficult to
of knowledge. you. Go on to the other questions and return
to the difficult ones later if you have time. If
Example 3: The most significant you have some knowledge about a particular
advantage of strategic sourcing is: question, you may be able to eliminate one or
more choices as incorrect. Your score on the
A. finding suppliers who can provide test will be based on the number of questions
materials at lowest cost. you answer correctly, with no penalty for
B. using technology to select low-cost, incorrect answers; therefore, it is to your
high-quality sources of materials. advantage to guess rather than not answer a
C. developing long-term supplier question. Avoid changing an answer unless
relationships. you are absolutely certain you marked the
D. having a process for recurring wrong answer.
transactions with single suppliers.
(The correct answer is C.) Interpreting Test Scores
Scoring is based on your correct responses.
Taking the Test There is no penalty for incorrect answers. The
The test is designed to evaluate a candidate’s omission of an answer will be counted the
knowledge of the subject matter. Therefore, same as an incorrect answer.
the key to success is a thorough
understanding of the subject matter. All The APICS CLTD scaled score range is 200–
questions are based on the current CLTD body 350. The minimum passing score is 300.
of knowledge as defined in the exam content You will receive your final exam score along
manual. with diagnostic information on your
performance.
When you start your exam, read the directions
carefully. Be sure you understand the
directions before you begin to answer any
Studying for the APICS CLTD
questions. Exam
Read each question carefully and thoroughly. APICS offers a number of resources to help
If a question includes stimulus material such individuals prepare for the APICS CLTD
as a table, graph, or situation, be sure to study examination.
it before you answer the question. Avoid

CLTD Exam Content Manual 3

APICS CLTD References Terminology
Bibliography. The APICS CLTD Examination In studying for the APICS CLTD certification
Subcommittee has identified a number of exam, candidates may discover multiple terms
references for the APICS CLTD examination. used to denote the same technique. An
These are listed in the Bibliography section of example of this is customer service ratio and
this manual. All the references contain fill rate. APICS has attempted to provide
excellent material that will assist in test consistency with preferred terminology.
preparation. For additional information on However, synonyms are often used by authors
the APICS CLTD references, visit the APICS in the various references used to compile the
website at apics.org/CLTD, or call APICS body of knowledge. Candidates are
Customer Service at 1-800-444-2742 (United encouraged to be familiar with all terms and
States and Canada) or +1-773-867-1777. concepts listed within the outline and key
terminology section, using the APICS
A candidate may discover that the material Dictionary, 15th edition as the primary guide
covered in the chapters of one reference for definitions.
duplicates material covered in another
reference. Both sources are included as
references to allow candidates some
Additional Resources for
discretion in selecting test preparation APICS CLTD Candidates
materials that they find accessible and
understandable. In addition to the cited references, it may be
helpful for you to pursue chapter-sponsored
In deciding if a single reference is sufficient, courses, college courses, APICS workshops,
candidates should assess their own level of self-study courses, or courses offered by the
knowledge against both the descriptive APICS network of authorized education
examination specifications and the detailed providers (AEPs) as a means of learning the
topic list contained in the content outline. If body of knowledge tested in the certification
there are any areas of weakness, the program. A wide variety of courses and
candidate should consult another reference materials is available. As with any investment,
as part of the test preparation process. you should research various courses before
choosing one.
Content outline. The content outline provided
in this document should be considered a APICS CLTD Learning System
primary resource for exam preparation. It The APICS CLTD Learning System is a
provides an overview of the major topics comprehensive professional development and
included in the exam, as well as a list of the certification preparation program. This self-
concepts that are relevant to that topic. directed program combines print material and
online interactive tools. This system is also
APICS Dictionary. The APICS Dictionary is an offered in instructor-led formats.
essential reference to the exam content
manual and APICS exams. Within the The APICS CLTD Learning System does not
profession, terminology varies among “teach the test” and in many areas reviews
industries, companies, and the academic concepts but does not teach concepts. The
community. The examination uses standard APICS CLTD Learning System provides a
terminology as defined in the APICS thorough review of the subject matter, but it
Dictionary. Recognizing the terms and should not be used without the most current
understanding their definitions are essential. APICS CLTD Exam Content Manual as a
means to direct the candidate’s study. There
will likely be some content in the APICS CLTD
Learning System not covered by the exam;
conversely, there will likely be some content in

4 ©APICS
the exam not covered by the learning system.
Thus, it is essential for candidates to use the
APICS CLTD Certification
current exam content manual in their studies. Maintenance: Continuing
Professional Development
APICS CLTD Instructor-Led Review
Courses The Importance of Certification
The instructor-led format combines the APICS
CLTD Learning System print and online Maintenance
components with the leadership of a qualified The growing number of individuals choosing to
instructor; peer collaboration; company pursue professional development through the
networking; and a structured, set schedule to APICS CLTD program indicates a strong
keep participants on track. Learn more about awareness that continuing education and
APICS recognized instructors at skills development are essential to meeting
apics.org/recognizedinstructors or find local the information and technological challenges
APICS partners that provide APICS CLTD in today’s rapidly evolving workplace and
courses at apics.org/finder. For courses in global marketplace. Professional development
North America, visit the Partner and Event opens doors to individual career opportunities
Finder on the APICS website at and organizational success.
apics.org/finder or call APICS Customer
Service at 1-800-444-2742 (United States Although APICS CLTD recognition and
and Canada) or +1-773-867-1777 to obtain maintenance are voluntary programs, they
contact information for your local chapter. equally demonstrate one’s commitment to
For courses outside North America, visit achieving the highest level of professional
apics.org/international to locate the nearest development and standards of excellence.
partner.
The APICS CLTD certification maintenance
program upholds both the objectives of the
APICS Educational Programs APICS CLTD program and the APICS vision to
In addition to the annual APICS International promote lifelong learning. This flexible
Conference & Expo, APICS offers a variety of program recognizes that individuals are at
educational programs. For a list of APICS various levels in their careers, come from
learning opportunities and information on many industries, have different educational
course availability, call APICS Customer needs and career goals, and have varying
Service at 1-800-444-2742 (United States access to continuing education. Thus,
and Canada) or +1-773-867-1777. requirements for maintaining certification can
be met through multiple sources and a variety
For a complete list of APICS resources, visit of professional development activities. These
the APICS website at apics.org or call APICS sources and activities are intended to help
Customer Service at 1-800-444-2742 or prepare for the challenges ahead and
+1-773-867-1777. maintain a professional edge by:

 preserving the currency of hard-

earned certification credentials
 expanding your knowledge of the
latest industry practices
 exploring new technology solutions
 reinforcing skills
 improving job performance
 demonstrating commitment to
excellence
 increasing competitive advantage

CLTD Exam Content Manual 5

To promote professional growth and lifelong  In your professional capacity, respect
learning, APICS CLTD designees must the fundamental rights and dignity of
complete the certification maintenance all individuals. You must demonstrate
program every five years. For complete details sensitivity to cultural, individual, and
on how to maintain your APICS CLTD role differences, including those due
designation, please visit apics.org/careers- to age, gender, race, ethnicity,
education-professional-development/ national origin, religion, sexual
certification/maintenance. orientation, disability, language, and
socio-economic status;
APICS Code of Ethics  In your professional capacity, not
engage in behavior that is harassing
When you start an examination, you will be or demeaning to others based on
asked to pledge to abide by the APICS Code of factors including, but not limited to,
Ethics. Once certified, you pledge to continue age, gender, race, ethnicity, national
your education to increase your contribution to origin, religion, sexual orientation,
the supply chain management profession. disability, language, or socio-economic
After achieving the APICS CLTD designation, status;
you pledge also to share your knowledge with
 Adhere to this Code of Conduct and its
others by participating in APICS research and
application to your professional work.
educational activities at local, district,
Lack of awareness or
national, and international levels.
misunderstanding of an ethical
standard is not itself a defense to a
APICS Code of Ethics is as follows:
charge of unethical conduct;
 Contact the Ethics Committee when
 Maintain exemplary standards of
uncertain whether a particular
professional conduct;
situation or course of action violates
 Not misrepresent your qualifications, the Code of Conduct; and
experience, or education to APICS or
 Not to become the subject of public
others you serve in a professional
disrepute, contempt, or scandal that
capacity;
affects your image or goodwill.
 Respect and not violate the United
States Copyright of all APICS Failure to abide by APICS Code of Ethics policy
materials, including but not limited to may result in sanctions up to and including
courseware, magazine articles and decertification.
other APICS publications, APICS
conference presentations, and CLTD,
CPIM, CSCP, and SCOR-P examination
resources. In this same spirit, you
must not violate the copyright of other
organizations and individuals in your
professional capacity;
 Not engage in or sanction any
exploitation of one’s membership,
company, or profession;
 Encourage and cooperate in the
interchange of knowledge and
techniques for the mutual benefit of
the profession;

6 ©APICS
 Capacity Planning and Demand Management
APICS Certified in Logistics, This section addresses the strategic and
Transportation and operational considerations, and important
trade-offs related to procurement,
Distribution (CLTD) manufacturing, and customer relationship
management, in terms of their separate and
CLTD Subcommittee
combined impact on logistics requirements. It
emphasizes the resource-alignment tasks that
Dr. Yemisi Bolumole, Ph.D., CTL (Chair) define how organizations develop forecasts by
Michigan State University which logistics and other departmental plans
Louis Carrieri are created.
GE Oil & Gas Nuovo Pignone
James Caruso, CPIM, CSCP Order Management
Medtronic This section addresses the related concepts of
Dr. Douglas Hales, Ph.D., CTL order management and customer service,
University of Rhode Island highlighting the major steps required to
Mark C. Hardison, CFPIM, CSCP manage and execute customers’ orders with
Jubilant Life Sciences Ltd an emphasis on logistics' key role in
Gary Smith, CFPIM, CSCP influencing customer service. Order
New York City Transit Authority management defines and sets the logistics
process in motion while customer service is
Scope of the Subject Matter the task by which logistics outputs are
The APICS CLTD certification examination measured and defined.
covers concepts, tools, and processes which
illustrate the supply chain-wide system Inventory and Warehouse Management
perspective of logistics. The CLTD emphasizes With a detailed examination of the related
the microanalysis of logistics, distribution, and concepts of inventory and warehouse
transportation services. Managing the management, this section addresses the
logistics system requires an oversight of various methods and techniques that firms
transportation, order processing, inventory, use to control, manage, and store inventory in
and the combination of warehousing, material the supply chain. This section emphasizes the
handling and packaging; all integrated economic and service benefits and the
through a network of facilities with a goal to support role that warehousing plays in the
support customer service, manufacturing, and logistics system. It illustrates the various
purchasing operational requirements. The managerial decisions in planning and
subject matter is organized into eight content implementing inventory and warehouse
areas: operations, including facility type, layout and
design, receiving, picking and put-away
Logistics and Supply Chain Overview strategies, material handling equipment,
This section provides an overview of the product-mix analysis, and audits.
macro and micro logistics processes and
systems which define forward and backward Transportation
material and information flows in the supply This section covers the major principles and
chain. With reference to its primary goal to processes of transportation management,
achieve consistent customer service at the administration, and economics. It addresses
lowest total cost, this section addresses the the fundamental responsibilities of
synchronized and integrated approach to transportation and traffic managers to
logistics management. This section illustrates include: knowledge of the transportation
logistics’ cross-functional relationships with functionality of inventory repositioning
marketing, finance, and manufacturing throughout firms’ supply chains, pricing, tariffs
operation requirements, showing how logistics and rate structure, routing optimization,
“fits” into the totality of business operations.

CLTD Exam Content Manual 7

freight auditing, claims administration, and  the major inputs and outputs of the
specialized transport-related services. logistics systems with an emphasis on its
value-creating role within the supply chain
Global Logistics Considerations  the interdependent components within the
With an emphasis on the more complex total logistics system and between logistics and
cost analysis required to navigate today’s other business functions in the supply
global landscape, this section addresses the chain
rules, processes, and qualitative and  an integrated logistics facility network
quantitative techniques that logistics design strategy that includes an
managers need to succeed in global supply understanding of trade-offs that influence
chains. It includes an understanding of total logistics costs
transportation modal analysis, security  the effects of variance in a logistics
considerations and regulations, duties, system, employing collaborative processes
documentation, and restrictions that define and mechanisms to minimize these
the global operating environment. variances while reducing operations costs,
enhancing productivity, and meeting
Logistics Network Design customer requirements
This section addresses the transportation and  the changing role of various stakeholders,
inventory economics that critically define supply specialists, and trading partners which
chain network design considerations. It includes define the increased complexity of
an introduction to the modeling tools and managing logistics within the current
techniques which enables supply chain spatial global marketplace.
and temporal integration, and addresses the
need for today’s logistics managers to extend In addition, the candidate preparing for the
this responsibility to include the processes, APICS CLTD certification examination must
resources, and tools for managing risks. have a fundamental understanding of the
following key business concepts:
Reverse Logistics and Sustainability
This section addresses the expanded view of • Business acumen (qualitative skills,
reverse supply chain flows to incorporate a math, statistics)
general overview of sustainability. It includes • Ethical considerations (morals,
a focus on the key factors and activities that character, habits)
define reverse logistics processes and • Leadership
logistics social responsibility considerations
with triple bottom line implications.

The successful candidate will be able to

actualize the leadership responsibility of
logistics to design and administer systems to
control the movement and positioning of
material and information flows, in order to
satisfy customer requirements at the lowest
total cost. Based on an understanding of the
processes, best practice methods, and tools
used by today’s logistics managers, the
successful candidate will be able to define the
actions necessary to implement selected
solutions to address specific supply chain
situations and opportunities. This includes an
understanding of, and the ability to manage:

8 ©APICS
 APICS CLTD Content understanding tradeoffs to present a logistics
Eight content areas have been designed to strategy that aligns with organizational
organize the APICS CLTD domains. The strategy, and finding the most effective mix of
relative importance of these topics will vary revenue producing services for the cost of
among industries, but the figures given below providing that service. Measurement and
show the percentage designated for each continuous improvement are emphasized as
section on the exam. ways to meet and exceed the pressures of
globalization and the steadily increasing
customer expectations for logistics.
Diagnostic Main topic Percentage
part of exam A. Logistics Fundamentals
It is important to understand the scope of
Logistics and logistics, including how it fits within the larger
I Supply Chain 8% role of supply chain management and
Overview business strategy. The concept of trade-offs is
used to show how the interconnected nature
Capacity Planning of the various areas of logistics, while a review
II and Demand 8% of logistics’ process flows puts things into a
Management different perspective. Achieving the full value
of logistics requires a balance between costs,
customer satisfaction, and service levels.
III Order Management 10% Emphasis is given to an understanding of why
methods of accounting for logistics costs is
important for logistics management and
Inventory and overall business success.
IV Warehouse 17%
Knowledge and skills in this area include:
Management
1. Logistics introduction
a. Definitions
V Transportation 22%
b. Scope of logistics
c. Principles and components
d. Drivers
Global Logistics
VI 17%
Considerations 2. Supply chain management and the
role of logistics
Logistics Network a. SCOR® Model
VII 10% b. Economic impact of logistics
Design
c. Effects of globalization and e-
commerce
Reverse Logistics
VIII 8%
and Sustainability 3. The value of logistics management
a. Creating competitive advantage
b. Reducing transportation, labor,
and inventory costs
Content Outline c. Increasing customer satisfaction
I. Logistics and Supply Chain Overview and service levels

Logistics is the core of supply chain 4. Logistics costs

management. Fundamental concepts include a. Cost allocations
managing logistics as a cohesive system, b. Activity-based costs

CLTD Exam Content Manual 9

B. Logistics Strategy within the Supply Chain 10. Right to operate
a. Regulatory
The many aspects of logistics strategy include b. Social
altering tactics to account for product life
cycle stages, finding the right balance 11. Key performance indicators (KPIs)
between services and their costs, fitting in
with existing organizational structures, C. Lean Logistics
developing strong relationships at the
appropriate level, assessing strategic level Continuous improvement methodologies need
risks including security, and designing the to become ingrained in an organization’s
right key performance indicators to encourage culture and strategies if they are to succeed.
desired behavior. These methodologies should be addressed up
front from the perspective of logistics’ role in
Knowledge and skills in this area include: eliminating all forms of waste while
maintaining high quality and designing supply
1. Goals and objectives, service levels chain agility. It is imperative that logistics
functions be proactive in assessing the need
2. Value proposition and creation for change and then realizing it. Methods of
continuous improvement include lean
3. Product life cycles logistics, agile systems, and the philosophy of
six sigma.
4. Cost and service optimization
a. Transportation/warehousing Knowledge and skills in this area include:
b. Inventory (space)
c. Labor 1. Continuous improvement philosophies
d. Technology a. Lean principles
b. Six sigma
5. Organizational design and supply c. Agile supply chain
chain synchronization
References: 1; 2 (chapters 2, 14, 15, 16); 3
6. Logistics relationships (chapters 2, 3, 4); 6 (chapter 1); 7 (chapters
a. Relationship types 1, 12, 17, 18); 9 (chapters 1, 3, 4); 10
b. Strategic alliances (chapters 1, 2, 6, 36)
c. Types of collaboration
Note: The first number indicates the sequence
7. Risk management number for the reference in the bibliography
a. Identifying and managing section and the numbers in parentheses
exceptions indicate the relevant chapters within that
b. Strengths, weaknesses, reference.
opportunities, and threats (SWOT)
II. Capacity Planning and Demand Management
8. Supply chain security
Logistics capacity planning and related
9. Segmentation decisions rely on efficient forecasts, so it is
a. Market important to understand the concepts behind
b. Value forecasting and its application to logistics
c. Physical characteristics decisions. This involves understanding how
d. Geography logistics can help direct and prioritize in order
e. Sales/demand to better match supply to demand. The
f. Mode effective acquisition of inventory also requires
g. Network a collaboration between procurement and
logistics.

10 ©APICS
A. Aligning Supply and Demand c. Equipment
d. Labor
Logistics professionals need an understanding e. Throughput (constraints)
of the concepts behind forecasting, especially
the resource-alignment tasks through which C. Demand Management
organizations develop forecasts by which
logistics, manufacturing, purchasing, and In its cross-functional interrelationships with
other departmental plans are created. sales, marketing, purchasing, and
manufacturing operations, logistics works to
Knowledge and skills in this area include: orchestrate and coordinate demand and
supply in order to resolve interface conflicts by
1. Why forecasts are created systematically considering plausible trade-
a. Bullwhip effect offs. This requires an understanding of
b. Factors affecting demand processes including sales and operations
1. Trend planning (S&OP), master production
2. Cyclical scheduling (MPS), materials requirements
3. Seasonal planning (MRP), and distribution requirements
4. Random planning (DRP).
c. Forecasting process
d. Forecasting methods Knowledge and skills in this area include:
1. Qualitative
2. Quantitative 1. Demand characteristics
a. Production
2. Interpreting forecasts b. Business-to-consumer (B2C)
a. Accuracy of forecasts (error rates) c. Business-to-business (B2B)
b. Exception management d. E-commerce
e. Supplier to customer
B. Translating Demand into Capacity
Planning 2. Planning and scheduling
a. Sales and operations planning
Practitioners use forecasts or other demand (S&OP)
information and translate it into high-level b. Collaborative planning,
capacity plans for warehousing and forecasting, and replenishment
transportation to deliver customer service at a (CPFR)
consistent level. c. Master production schedule (MPS)
Knowledge and skills in this area include: d. Material requirements planning
(MRP)
1. Information flow e. Enterprise resources planning
a. Data mining (ERP)
b. Visibility f. Distribution requirements planning
(DRP)
2. Transportation considerations
a. Transport decisions (mode, carrier, D. Sourcing and Procurement of Inventory
route selections) Logistics needs to closely coordinate its
b. Inbound capacity activities with procurement to ensure a stable
c. Outbound capacity source of supply at reasonable total logistics
d. Throughput system costs. This involves the procurement
e. Load planning processes of selecting suppliers and
generating contracts with the appropriate
3. Warehousing considerations terms and conditions, which ensure
a. Mode performance is adequately monitored and
b. Storage controlled.

CLTD Exam Content Manual 11

 Knowledge and skills in this area include: Knowledge and skills in this area include:

1. Procurement process 1. Implementing the CRM process

2. Purchasing strategy 2. Trade-off analysis

a. Make-or-buy decisions
b. Strategic sourcing and purchasing B. Order Management

3. Supplier selection Logistics professionals work closely with

procurement specialists who source required
4. Contract terms and conditions materials and components from suppliers for
the manufacture of products. Once the
5. Coordinated logistics purchase order processing is completed,
logistics confirms the goods received match
6. Procurement technology the original order and a routing guide is used
to assist in the multiple decisions that must
7. Key metrics be made.
Logistics relies on systems, such as Electronic
References: 1; 2 (chapters 4, 6, 7); 3 Data Interchange (EDI) and transportation
(chapters 7, 11, 13); 6 (chapters 6, 7); 7 management systems which enable order
(chapters 3, 5, 6, 7); 9 (chapters 5, 6, 11, 13); visibility to identify the status of any customer
10 (chapters 12, 13, 15) order and to coordinate complex inbound
flows, intracompany movements, and
III. Order Management outbound orders. Supplier and carrier
At the core of the logistics process is the performance is tracked and measured so that
customer order, which serves as the trigger improvements can be made on an ongoing
setting logistics in motion. Order management basis, making logistics more efficient and
activities include a variety of tasks aimed at effective.
planning, designing, and controlling processes Tailoring, aligning, and managing relationships
which manage and execute customers’ with the supply chain partners will enhance
orders. At the core of these processes is the performance of the entire supply chain.
customer relationship management since
every decision and activity that logistics takes Knowledge and skills in this area include:
should be with the customer in mind. By
developing a customer service management 1. Inbound order management
strategy, logistics can deliver on the seven a. Logistics role in supplier
rights of customer service which enhances relationship management (SRM)
long-term customer satisfaction and creates 1. The goal of SRM
lifetime customers. 2. Confirming goods receipt
3. Routing guide
A. Customer Relationship Management b. Inbound process
(CRM) 1. Information flow
CRM is an important marketing philosophy 2. Lead time
that emphasizes all customers as being top c. Advance ship notice (ASN) process
priority, including internal customers or end d. Packaging requirements
consumers. By implementing the steps of a e. Order receipt
CRM process, relationships with key 1. Order tracking
stakeholders can be optimized throughout 2. Order visibility
each transaction. f. Transportation plan
g. Freight forwarders

12 ©APICS
 h. Track and measure supplier and 2. Sales and marketing support
carrier performance
1. Key performance indicators 3. Technical support, service, and parts
(KPIs)
2. Best practices 4. Performance measurements
a. Process
2. Intracompany orders b. Product
c. Satisfaction
3. Outbound order management
a. Order cycle time References: 1; 2 (chapter 3,); 3 (chapter 8); 6
b. Order cycle stages (chapter 7); 7 (chapter 9); 9 (chapter 10); 10
1. Order transmittal (chapter 3)
2. Order processing
3. Order picking and assembly IV. Inventory and Warehouse Management
4. Order delivery
Inventory and warehouse management
c. Exceptions and change
involves maintaining inventory levels in a
management
manner that aligns with the business strategy
d. Freight terms
and goals, supporting the coordination of
e. Destinations
supply and demand, while protecting inventory
1. Exports
value. Warehouse management also entails
f. Aligning order and fulfillment
the movement of materials and goods into
channels
and out of storage efficiently, safely, and with
1. Multi-partner networks
minimal inventory damage. As business
2. E-commerce
practices and technology evolve, inventory
and warehouse management must adapt to
C. Customer Service Management (CSM)
new distribution channels and
Customer service management (CSM) is the customer/consumer expectations by creating
ability of an organization to meet the needs, new processes that deliver the desired results.
inquiries, and requests from customers.
A. Inventory Management in Logistics
Developing an effective CSM strategy ensures
that the seven rights of customer service will To fulfill its basic functions, inventory resides
be achieved—the right product, the right at many points in the supply chain. Excessive
quantity, the right condition, the right place, levels of inventory create additional costs for
the right time, the right customer, the right the organization and exposure to risk in
cost. Customer service extends after the fluctuations and changes in customer
transaction by servicing products and demand. Because of its critical impact on the
providing parts. In order for logistics to further bottom line, effective inventory management
refine its service, customer feedback is is now seen as a way to create value in the
gathered on processes, products, and business. It is more imperative than ever to
customer satisfaction in order for understand the unique role that inventory
improvements to be incorporated as best plays in the business strategy.
practices.
Knowledge and skills in this area include:
Knowledge and skills in this area include:
1. Role of inventory management
1. Meeting customer needs
a. Customer service management 2. Inventory types
elements a. Raw materials
b. Customer service management b. Work in process (WIP)
strategy c. Finished goods

CLTD Exam Content Manual 13

 d. Maintenance, repair, and inventory turn and helping the business
operating (MRO) supplies capture the value of inventory investments
e. Pipeline stock (in-transit inventory) more quickly.

3. Functions of inventory (classifications) Knowledge and skills in this area include:

a. Anticipation
b. Cycle stock/lot size 1. When to order
c. Safety stock
d. Hedge 2. How much to order
e. Buffer a. Economic order quantity (EOQ)
f. Decoupling b. Conditions of uncertainty

B. Inventory Management Methods 3. ABC analysis/classification

Managing inventory effectively requires 4. Cycle counting

meeting competing goals to minimize a. Count all (wall-to-wall)
inventory costs and maximize b. Control group
customer/consumer service. A clear c. Random sample
understanding of what contributes to d. Count for accuracy
inventory carrying costs is, therefore, a
prerequisite to crafting an appropriate 5. Kitting/dekitting
inventory management strategy. These costs
can be controlled through more effective 6. Just in time (JIT) and kanban systems
approaches to inventory ordering that
minimize the amount of time inventory resides 7. Inventory turnover
in the pipeline, which reduces the risk of
accumulating excess and potentially obsolete D. Warehousing Strategy and Management
inventory.
Warehouse management strategy aims to
Knowledge and skills in this area include: deploy the firm’s warehousing assets and
skills to advance the business goals. The
1. Costs of Inventory warehouse strategy must be aligned with the
a. Ordering costs corporate strategy and objectives and also
b. Carrying/holding costs with the organization’s supply chain strategy,
c. Handling costs
which defines the role of each warehouse,
d. Stockout costs
including its location, size, and capabilities.
e. Setup costs (one-time costs vs.
overhead costs) The strategy is implemented through efficient
and effective warehouse processes, a safe
2. Order quantity and efficient warehouse layout that supports
warehouse operations, and the use of
C. Inventory Control appropriate warehouse technology.
Maintaining optimal inventory levels includes Knowledge and skills in this area include:
the related replenishment questions of “how
much to order” and “how often to order.” The 1. Warehouse strategy
answers help create an inventory control a. Role of warehousing
approach that is both economical and service- b. The economics of warehousing
oriented. Inventory control also requires c. Challenges of warehousing
deciding when to order, which in turn requires
considering issues such as lead times, supply 2. Types of warehouses
risk, and inventory review. Inventory control a. Ownership types
approaches focus on increasing the rate of

14 ©APICS
 b. Uses/roles of warehouses E. Packaging and Materials Handling
1. Raw materials storage
2. Sub-assembly facilities The effectiveness of packaging is influenced
3. Finished goods storage by product characteristics, economic and
4. Distribution centers (DC) environmental goals, and the need for safe
5. Cross-dock centers and efficient materials handling during
6. Fulfillment centers storage and transportation. Appropriate
c. Structures packaging unitizes, protects, and can help
d. Specialized warehouse services businesses accomplish a variety of
1. Climate-controlled performance utility goals:
2. Bonded, duty paid  Saving money by using less expensive
3. Hazmat packaging and by fitting more units in
4. Automated capabilities
transportation and storage vessels, thus
decreasing transportation and
3. Warehouse processes
a. Receiving warehousing costs
b. Storage  Saving time by aligning packaging with
c. Picking and packing—FIFO, LIFO warehouse storage and equipment
d. Consolidation requirements
e. Loading  Preserving the economic value of
f. Shipping inventory investment by reducing the risk
g. Replenishment of damage and loss spoilage during
storage and transportation
4. Facility layout decisions  Supporting the safety of workers
a. Size of facility responsible for handling materials and
b. Types of layouts goods
 Achieving sustainable practices goals by
5. Warehouse operation
using recyclable, recycled materials,
a. Outsourcing
and/or reusable packaging materials
b. Consignment
c. Value-added warehousing
d. Vendor-managed inventory (VMI) Knowledge and skills in this area include:
1. Product characteristics
6. Warehouse automation (managing
space and labor) 2. Packaging fundamentals
a. Warehouse management systems
(WMS) 3. Unit loads
b. Yard management system (YMS)
c. Enterprise resources planning 4. Materials handling
(ERP) a. Equipment
d. Warehouse equipment and b. Layout
systems c. Health and safety, security
1. Picking
2. Handling References: 1; 2 (chapters 7, 9, 10); 3
3. Storage
(chapters 9, 11); 6 (chapters 8, 10, 11); 7
7. Performance Management (chapters 4, 8, 16); 8 (chapters 1, 3 - 10, 14,
a. Quality 16); 9 (chapters 7, 12); 10 (chapters 13, 14,
b. Audits 16 - 22)

CLTD Exam Content Manual 15

V. Transportation 3. Transportation
capabilities/intermediaries
Transportation moves goods and services a. 3PLs and 4PLs
across geographic lines, between where b. Freight forwarders
products are produced and where they are c. Freight brokers
consumed, while allowing for competitive d. Customs broker
growth. At home and abroad, advances in e. Export management companies
transportation through technology and design (EMC), Export trading companies
have broadened the markets for both (ETC)
domestic and international competition. The f. Shipping associations
wider a product’s distribution and the greater g. Agents
its demand, the more manufacturers can h. Export packing companies
leverage transportation’s economies of cost.
Logistics professionals are responsible for 4. Carrier Types
moving inventory throughout the firm’s supply a. Common
chain and to the firm’s customers. They can b. Contract
use a combination of private and purchased c. Exempt
transportation services with access to various d. Private carriers
modes of transportation, offering flexible
solutions for transporting product from origin 5. Freight classifications
to destination. a. Less-than-truckload (LTL)
A. Transportation Fundamentals b. Truckload lot
c. Full-truckload (FTL)
Transportation systems connect the various d. Less-than-container-load (LCL)
supply chain components and must be e. Full-container-load (FCL)
properly managed and controlled with f. Specialized
complete visibility and strong communication
between multiple stakeholders and 6. Selection considerations
transportation managers. Proactive
transportation management is critical to an B. Modes of Transportation
efficient and economical operation and should
be considered when a company plans Transportation consumes time, financial, and
organizational and supply chain processes. An environmental resources. Understanding the
integral part of logistics, the transportation characteristics of the different transportation
process represents one of the largest portions modes enables managers to make
of a logistics manager’s budget. appropriate selections based on relative
modal performance in terms of speed,
Knowledge and skills in this area include: availability, dependability, capability,
frequency, and cost. Intermodal transportation
1. Transportation cost structure combines two or more modes to execute the
a. Ways that goods are moved shipment process, and represent a key means
b. Terminals of transportation service.
c. Vehicles
Knowledge and skills in this area include:
2. Transportation stakeholders
a. Shipper (consignor) 1. Road
b. Recipient (consignee) of a. Vehicle types
transported goods b. Market structure
c. Carrier of goods and agents c. Operating and service
d. Government characteristics
e. Public d. Issues and challenges

16 ©APICS
 2. Rail vessel operating agents. Transportation
a. Types of carriers/freight managers must effectively manage the entire
b. Market structure transportation process—from long-range
c. Operating and service strategies and operational planning to day-to-
characteristics day execution.
d. Issues and challenges
Knowledge and skills in this area include:
3. Air
a. Types of carriers 1. Transportation network design and
b. Market structure mode selection
c. Operating and service a. Routing analysis and optimization
characteristics b. Trade-offs in transportation design
d. Issues and challenges c. Utilize data driven business
intelligence
4. Water (ocean or waterways)
a. Types of carriers 2. Carrier selection
b. Market structure a. Selection factors
c. Operating and service b. Outsourcing considerations
characteristics c. Contracts
d. Issues and challenges 1. Master contracts
2. Purchase orders
5. Pipeline 3. Templates, key sections
a. Types of carriers 4. Best practices
b. Market structure
c. Operating and service 3. Rate tariffs
characteristics a. Manual vs. automatic
d. Issues and challenges b. Standardize charges
c. Rates per mode
6. Intermodal and multi-modal d. Drivers
transportation, multi-stop e. Contract types and rates
a. Container types
b. Market structure 4. Documentation
c. Operating and service a. Terms of sale
characteristics b. Master bill of lading
d. Issues and challenges c. House bill of lading
d. Freight bill
7. Courier and parcel services e. Freight claims
a. Types of carriers f. Proof of delivery
b. Market structure
c. Operating and service 5. Tracing, tracking, expediting, and
characteristics consolidation
d. Issues and challenges a. Timeline vs. location
b. Optimization
C. Transportation Management c. Electronic data interchange (EDI)
d. Exception management
Transportation management usually covers
two areas: inbound and outbound flows. 6. Demurrage, routing and billing
Transportation management’s goal is to
reduce transportation costs and increase 7. Special product considerations
delivery reliability through collaboration
between all participants in the transportation
transaction: carriers, providers, and non-

CLTD Exam Content Manual 17

 8. Transportation cost forecasting and well as discussion of the relative quality and
budgeting quantity of transportation infrastructures
a. Economic considerations across modes and countries provide a solid
b. Market considerations historical and geographic perspective of the
c. Security considerations many components that impact global trade
d. Regulation requirements today.

9. Freight settlement Knowledge and skills in this area include:

References: 1; 2 (chapter 8); 3 (chapter 10); 4 1. Macroenvironmental factors

influencing international logistics
(chapters 2 - 8); 6 (chapters 12, 13); 7
(chapter 7); 9 (chapter 13); 10 (chapters 24 -
2. International Infrastructure
29) a. Transportation
VI. Global Logistics Considerations b. Utilities
c. International trade specialists
For the global logistics manager, successful
participation in international trade requires B. Regulations
awareness and knowledge of a number of key
components, including but not limited to: Virtually every aspect of international trade is
governed by regulations created by the
 the infrastructure and systems of the government of each country through which a
countries to which it will export goods shipment will pass. With most international
 the regulations which govern each country transactions, product shipments typically pass
that its shipments will travel through multiple borders, thus increasing the
 the customs clearing and documentation complexity of required documentation, safety
requirements for each shipment as and security measures, and involvement of
dictated by each country and logistics and trade specialists. Trade
transportation mode used agreements and trading blocs can be used to
 an understanding of how it can reach facilitate international trade by mitigating
mutual agreement on the terms of sale, against some of these complex procedures.
methods of payment and finance terms Navigating the various changing export
trade participants; and restrictions and lists of restricted/denied
 the process of determining the currency to parties requires a working knowledge of each
be used for payment, transfer pricing and country’s current regulations, quotas, control
potential understanding of how lists, and end use certificates.
free/foreign trade zones (FTZ) influences Knowledge and skills in this area include:
duties paid and total landed costs.
Coordinating these international trade 1. International trade
elements is an essential skill set for a. Trade agreements
today’s logistics professionals. b. Trading blocs
c. Trade compliance
A. Infrastructure and System
By identifying the macroenvironmental factors 2. International transportation
of global logistics that impact countries and regulations
organizations around the world, logistics a. Government policies and
professionals can be better prepared to regulations
manage their array of service providers, b. International Air Transport
related transportation costs, and substitute Association (IATA)
product offerings. A variety of important c. Anti-bribery and corruption
international trade theories and practices, as practices

18 ©APICS
 3. Transportation safety e. Rail waybill
a. Labor safety regulations f. ATR certificate
b. Standards for equipment and g. Packing list
vehicles
c. Dangerous goods and hazardous 5. Customs clearance
materials a. Duty
d. Environmental b. Harmonized System of
e. Security Classification
c. Valuation
4. Methods of entry d. Tariffs
a. Import/export regulations e. Customs brokers
b. Export restrictions
D. Finance and Payment Options
C. Customs Clearing and Documentation
Global trade can often associate with higher
Today’s logistics managers must be levels of financial risks as a result of the many
knowledgeable in preparing all the required unknown variables that can impact
documentation needed by customs to ensure international transactions. All parties must
that the customers’ shipments arrive safely, evaluate their risk of exposure and identify
securely, without damage, and on time at their which financing and payment options are
final designation. Ease in using the most appropriate and amenable to the parties
Harmonized System Classification codes is involved. There must be agreement on all the
vital to properly specifying the goods for export terms of sale and the method and timeframe
and each code assignment ultimately dictates of payment. Familiarity with International
the tariff rate charged for those products. Commercial Terms, also known as
Incoterms®, is essential to clarifying and
Knowledge and skills in this area include: understanding how responsibilities are
assigned between buyers and sellers in each
1. Invoices transaction.
a. Commercial invoice
b. Pro forma invoice Knowledge and skills in this area include:
c. Consular invoice
1. Terms of sale
2. Import documents (sales documents) a. Contract terms and conditions
a. Certificate of origin b. Incoterms®
b. Certificate of manufacture
c. Certificate of inspection 2. Methods of payment
d. Certificate of free sale a. Cash in advance
e. Import license b. Letter of credit
f. Certificate of insurance c. Bills of exchange
g. Carnet d. Open account

3. Export documents E. Currency and Tax Considerations

a. Shipper’s export declaration (SED)
b. Export license Similar to the selection of terms of sale and
financing, global trade participants must
4. International transportation decide which currency will be most
documents appropriate for payment, based on the
a. International bill of lading convertibility of the selected currency and the
b. Ocean bill of lading risk of fluctuation. As trade participants
c. Air waybill (AWB) individually strive for sustained profitability,
d. Road waybill this must be appropriately balanced with
levels of risk exposure between buyers and

CLTD Exam Content Manual 19

 sellers. Related options such as use of foreign 2. Facility location decisions
trade zones and transfer pricing can lessen or a. Types of distribution networks
mitigate these risks exposures. b. Deployment
considerations/factors
Knowledge and skills in this area include: c. Location techniques
1. Currency translation 3. Determining appropriate facility type
2. Transfer pricing B. Distribution Network Design
3. Free/foreign trade zones (FTZ) Logistics professionals should follow a
process to make the complex activities of
References: 1; 2 (chapter 11); 3 (chapter 3); 4 network design easier to navigate, including
(chapters 1, 9, 10, 11, 14); 5 (chapters 1, 2, understanding the various factors to consider
3, 4, 6, 7, 9, 11, 12, 13, 16); 6 (chapters 12, when selecting a particular facility location.
13, 14); 7 (chapters 7, 11); 9 (chapters 13, Distribution network design involves
14) employing modeling techniques, such as
heuristic, optimization, and simulation tools
VII. Logistics Network Design designed to help find the right balance among
the competing needs of the multiple
The design of the network of warehouses and stakeholders involved in a modern logistics
transportation lanes enable supply to be network.
provided at the place and time of demand
most effectively. This involves choosing the Knowledge and skills in this area include:
optimal number, location, and type of
warehouse facilities, which can be supported 1. Logistics network design process
by using both manual and automated decision
support tools. Risk management helps 2. Locational determinants – key factors
logistics professionals determine how they a. National/regional
can help minimize uncertainty and provide b. Site-specific
more reliable organizational results.
3. Modeling approaches
A. Facilities Planning 1. Optimization
2. Simulation
Several factors need to be weighed to
3. Heuristic
determine the proper location, number, and
type of warehouse facilities given the trade-
C. Risk Management
offs with transportation. This requires a
detailed analysis of transportation and Risk management is a vital part of network
distribution requirements, while design and must be included in order to make
understanding the key trade-offs inherent in the network resilient and resistant to
planning and deploying an optimized network. customer, financial, regulatory, security,
hazard, business interruption, and other types
Knowledge and skills in this area include:
of vulnerabilities. It is important for logistics
professionals to learn the risk management
1. Transportation requirements
process for identifying, prioritizing, and
a. Business strategy
appropriately responding to each risk. These
b. Analysis of transportation
plans can include prevention or mitigation
requirements for customer
plans, as well as providing business continuity
c. Trade-offs
if a risk event occurs. Logistics requires an
d. Inventory location and levels,
understanding of the types of insurance that
order size and frequency
can be acquired and the associated benefits
and limitations. The amount of insurance

20 ©APICS
 obtained needs to be measured against risk A. Reverse Logistics
levels to make sure that the investment in
insurance is appropriate for the business Logistics is involved in deciding if the firm’s
situation. reverse logistics strategy can be handled
internally by creating a central returns center
Knowledge and skills in this area include: or by hiring a third-party provider to coordinate
the activities. These activities may include
1. Types (customer, financial, regulatory) recalls, overstocks, reuse, refilling, repairing,
a. Mode selection remanufacturing, refurbishing, recycling,
b. Choosing your carrier repurposing, recovery, and disposal. The firm
c. Warehouse strategy must carefully weigh the benefits and
d. Build redundancy challenges it will encounter for each of these
e. Weather/environmental sub-processes and develop a comprehensive
f. Supplier failure
strategy to master and manage its reverse
g. Avoid unnecessary costs
h. Visibility flow processes and the value stream which
will contribute positively to the organization’s
2. Risk management process bottom line.
Knowledge and skills in this area include:
3. Security
a. International organizations
1. Key factors
b. Different country approaches
2. Reverse logistics activities
4. Business continuity planning
a. Returns, recalls, overstocks
b. Reusable shipping assets
5. Packaging options
c. Reduce/reuse (refilling), repair,
remanufacturing
6. Insurance
d. Recycling, repurposing, recovery
e. Disposal (scrap, salvage)
References: 1; 2 (chapters 4, 12, 16); 3
(chapter 12); 6 (chapter 9); 7 (chapter 15); 10 3. Reverse logistics process
(chapter 9) a. Forward and reverse flow, closed-
VIII. Reverse Logistics and Sustainability loop supply chains
b. Steps to product returns process
Companies around the globe use reverse
logistics to manage their product returns in 4. Optimizing reverse logistics
ways that actually turn the reverse flows into a. Reverse logistics costs; strategic
quantifiable value streams that not only view
contribute to the profitability of the b. Avoidance strategies
c. Key management elements
organization, but also strengthen its triple
d. Key technologies
bottom line (TBL) and its commitment to
e. Benefits
sustainability and social responsibility. These f. Challenges
efforts make the organization more attractive
to customers, suppliers, other supply chain
participants, and to shareholders who value
green initiatives, reduced carbon footprints
and wiser usage of the world’s finite
resources.

CLTD Exam Content Manual 21

B. Sustainability 6. Reducing fuel consumption,
alternative vehicle/fuel
Logistics plays a critical role in demonstrating technologies
social responsibility that is valued by its c. Vendor selection
customers, shareholders, and the community. d. Pricing incentives
It can impact each dimension of social e. Other environmental impacts
responsibility, safety, human rights, diversity, 1. Dangerous goods
philanthropy, and ethics, by implementing 2. Hazardous waste
specific tactics in its operations. With these f. Monitoring and measurement
targeted efforts and sustainability initiatives,
logistics will impact the organization’s triple References: 1; 2 (chapter 16); 3 (chapter 15);
bottom line (TBL) which measures their 7 (chapter 10); 10 (chapter 37)
economic, social, and environmental impact.
A commitment to sustainable processes and
practices and choosing suppliers and other
supply chain members according to those
requirements will help the organization be a
good environmental steward for the long-term.
Knowledge and skills in this area include:

1. Logistics social responsibility

considerations
a. Dimensions
b. TBL impacts
c. Frameworks, standards, and
guidelines
1. United Nations Global
Compact
2. Global Reporting Initiative
(GRI)
3. ISO Standards (ISO 14001,
ISO 50001)

2. Sustainability in the supply chain

a. Carbon footprints and offsets
b. Green initiatives
1. Products
2. Packaging
3. Warehousing design and
layout
4. Material handling
5. Transportation mode selection
and alternatives

22 ©APICS
Key Terminology D
An understanding of the following list of terms demand forecasting
is recommended. The list is intended to be demand planning
thorough but not exhaustive. The candidate is detention
also expected to be familiar with the dunnage
definitions of terms identified in the content dwell
outline. Definitions of these terms can be
found in the APICS Dictionary, 15th edition. E
80-20
A embargo
advanced planning and scheduling (APS)
agile manufacturing F
allocation fill rate
anti-bribery regulations freight rate
assemble-to-order
asset recovery G
associative forecasting gatekeeping
automatic identification and data capture
(AIDC) H
automatic identification system (AIS) Harmonized Tariff Schedule (HTS)
available-to-promise (ATP)
I
B inventory accuracy
backorder inventory shrinkage
balanced scorecard
barge L
benchmarking landed cost
bill of lading (uniform) life cycle analysis
break-bulk line haul
bribes
broker M
business intelligence make-to-order
make-to-stock
C master service agreement
carbon offsets motor carrier
cash-to-cash cycle time multisourcing
center-of-gravity approach
closed-loop systems N
commodity rate non-vessel-operating common carrier (NVOCC)
container security initiative (CSI)
continuous replenishment O
cost of goods sold (COGS) order fill rate
cross-docking order to cash cycle
cross-docking warehouse order transmittal
cube rate
cube utilization
customs trade partnership against terrorism
(C-TPAT)
customer service ratio

CLTD Exam Content Manual 23

P
pallet
Pareto analysis
part-to-picker system
perfect order
picker-to-part system
pick-to-light
pick-to-voice system
postponement
private warehouse
public warehouse

R
radio frequency identification (RFID)
rail gauge
reorder point

S
seasonality
short-sea shipping
slip sheet
software-as-a-service (SaaS)
sorting
stockkeeping unit (SKU)
stowability
strategic planning

T
terms of trade
time series forecasting
total cost of ownership (TCO)
trailer on a flatcar (TOFC)
transportation management system (TMS)
truckload carriers
twenty-foot equivalent unit (TEU)

W
warehouse receiving
warehouse storage

24 ©APICS
Bibliography 9. Ross, David F. Distribution Planning and
All test candidates should familiarize Control – Managing in the Era of Supply
themselves with the following references for Chain Management. 3rd ed., Springer,
this examination. The recommended 2015.
references pertaining to the diagnostic area 10. Rushton, Alan, Phil Croucher and Peter
are listed at the end of each section of the Baker. The Handbook of Logistics and
content outline. The APICS Dictionary is Distribution Management:
available from the APICS Bookstore. Please Understanding the Supply Chain. 5th
visit apics.org/shopapics. All other references ed., Kogan Page Limited, 2014.
can be found at the APICS Amazon store at
astore.amazon.com/apics01-20

1. APICS Dictionary. 15th ed., 2016.

2. Bowersox, Donald J., David J. Closs, M.

Bixby Cooper, and John C. Bowersox.
Supply Chain Logistics Management.
4th ed., McGraw-Hill, 2013.

3. Coyle, John J., C. John Langley Jr., Robert

A. Novack, and Brian J. Gibson.
Managing Supply Chains – A Logistics
Approach. 9th ed., South-Western,
Cengage Learning, 2013.

4. Coyle, John J., Robert A. Novack, and

Brian J. Gibson. Transportation – A
Global Supply Chain Perspective. 8th
ed., Cengage Learning, 2016.

5. David, Pierre. International Logistics.

4th ed., Cicero Books, 2013.

6. Murphy, Paul R. Jr and A. Michael

Knemeyer. Contemporary Logistics –
Global Edition. Eleventh ed., Pearson
Education Limited, 2015.

7. Myerson, Paul A. Supply Chain and

Logistics Management Made Easy.
1st ed., Pearson Education, Inc., 2015.

8. Richards, Gwynne. Warehouse

Management – A Complete Guide to
Improving Efficiency and Minimizing
Costs in the Modern Warehouse. 2nd
ed., Kogan Page Limited, 2014.

CLTD Exam Content Manual 25

 4. Which of the following metrics is
Sample Questions considered external thus customer-
facing?
The following ten questions are similar in
format and content to the questions on the
(A) Perfect order
CLTD exam. These questions are intended for
(B) Line fill
practice—that is, to enable you to become
(C) Inventory turns
familiar with the way the questions are asked.
(D) Cycle count
The degree of success you have in answering
these questions is not related to your potential
5. Inventory carrying costs generally
for success on the actual exam, and should
include:
not be interpreted as such. Read each
question, select an answer, and check your
(A) Inventory capital, storage, service,
responses with the explanations on pages 28-
and risk costs.
29.
(B) Inventory capital, order, storage, and
setup costs.
1. In its simplest form, logistics:
(C) Inventory risk, service, setup, and
order costs.
(A) is concerned with only the
(D) The fixed costs associated with a
distribution of products.
company-owned warehouse.
(B) is another term for transportation.
(C) integrates inbound logistics with
6. Pallet-flow racking is perfect for
outbound logistics.
facilitating:
(D) does not involve customer service.
(A) last in, first out (LIFO).
2. Warehouse management system (WMS)
(B) cycle counts.
based task interleaving combines:
(C) first in, first out (FIFO).
(D) low velocity moves.
(A) Put-away and replenishment
operations
7. The standard gauge of most of the
(B) Replenishment and shipping
world’s rails will measure at:
operations
(C) Shipping and put-away operations
(A) 4 feet 6 inches.
(D) Receiving and shipping operations
(B) 4 feet 8 inches.
(C) 5 feet 6 inches.
3. A logistics manager works within a
(D) 6 feet 4 inches.
business where transportation capacity
is near critical mass. Load planning is
8. A ship, which is able to carry 6,000
inefficient given the increasing volume
twenty-foot equivalent unit (TEUs), would
of loads. Which of the following
maximize its capacity by carrying which
applications would enable better
of the following containers?
decision making and efficiency in
planning loads?
(A) 3,000 20' containers
(B) 3,000 40' containers
(A) Advanced planning and scheduling
(APS) (C) 1,500 20' and 1,500 40' containers
(B) Distribution requirements planning (D) 3,000 20' and 3,000 40' containers
(DRP)
(C) Enterprise resources planning (ERP)
(D) Transportation management system
(TMS)

26 ©APICS
9. Which of the following functions are
associated with a supply-facing
warehouse?

(A) Manufacturing operations

(B) Consolidating shipments of finished
goods
(C) Marketing strategies
(D) Inbound materials and components

10. A marketing initiative increases

packaging dimensions for an existing
product that remains unchanged. While
the larger packaging may increase sales
of the product, the impact on
sustainability will be that:

(A) less packaging will be thrown out.

(B) transportation capacity will be
wasted.
(C) shipment density will increase.
(D) fewer shipments will be required.

CLTD Exam Content Manual 27

 and key business processes via a
Answers to Sample Questions common software platform and
centralized database system.
Note: References to the content outline
appear in parentheses. 4. A (IIIC4) A is correct because customer
service can be looked at from an
1. C (IA1) C is correct because the internal or external key performance
combination of materials management indicator (KPI) perspective. B, C, and D
(inbound logistics) and outbound are internal metrics while external
logistics of physical distribution was a metrics include perfect order and order
natural progression of the post- fill rate performance. These external
deregulation development of logistics metrics are obvious to the customers
during the 1980s. A and B are and often directly influence customers’
incomplete perspectives of the system sales behavior since they impact
that defines logistics. D is incorrect customers’ perception of the
because customer service is one of the organization’s strategies.
key outputs of the logistics system.
5. A (IVB1) A is correct because inventory
2. A (IB4) A is correct because put-away and carrying costs generally include those
replenishment (picking) are typically costs that are only incurred by inventory
opposite operations in warehouses. Task at rest and waiting to be used, i.e., those
interleaving is a WMS-based task that costs associated with manufacturing
typically combines dissimilar tasks in and moving inventory from one point to
order to reduce traveling and increase another within the firm’s supply chain.
productivity. There are four components of inventory
carrying costs: capital costs, storage
3. D (IIB2) D is correct because the space cost, service costs, and risk costs.
planning capabilities of a transportation The fixed costs associated with a
management system (TMS) assists company-owned warehouse (option D)
transportation buyers and managers do not vary with volume of inventory
with key pre-shipment decisions. Critical manufactured/purchased. Setup costs
TMS planning applications include (options B and C) refer to the expense
routing and scheduling, load planning incurred each time an organization
and optimization, and appointment modifies production or assembly
scheduling. Advanced planning and processes.
scheduling (APS) is a system of
techniques that integrates demand, 6. C (IVE4) C is correct because pallet-flow
production, and distribution planning racks are driven by gravity, making them
during short, intermediate, and long- perfect for fast-moving products with a
term time periods. An APS system first in, first out (FIFO) stock rotation.
allocates raw materials and production Last in, first out (LIFO) would be
capacity optimally to balance demand incorrect since this is typically more
and plant capacity. Distribution feasible with a push-back racking
requirements planning (DRP) is used to system. The other 2 options of cycle
help determine the appropriate level of counts and low velocity moves are not
inventory in order to manage and control relevant options in this case.
replenishment schedules between an
organization’s manufacturing facilities
and its distribution centers. Enterprise
resources planning (ERP) systems are
multi module application platforms that
help organizations integrate information

28 ©APICS
7. B (VB2) B is correct because 4 feet 8
inches is the global standard gauge as
about 60% of the world uses this gauge.
Answer A would be considered narrow
gauge and answers C and D would be
considered broad gauge rail.

8. B (VB4) B is correct since it equals 6000

TEU’s which would maximize the
capacity of the ship. Answers A and C do
not maximize the capacity of the ship
while D would be over the capacity of
the ship.

9. D (VIIA2) D is correct because supply-

facing warehouses are used for
incoming material and components into
the facility. Options A, B, and C are
wrong because they are all associated
with demand or outgoing facing
warehouses.

10. B (VIIIB2) B is correct because

increasing the package size only creates
more wasted space. Fewer products in a
shipment mean increased shipments
using more fuel. A is incorrect because
more packaging will be thrown out. C is
wrong because shipment density will
decrease, not increase. D is also wrong
because more shipments are needed
due to reduced density.

CLTD Exam Content Manual 29

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