Certified in Logistics, Transportation and Distribution (CLTD) Practice Test 2025 – Your All-in-One Resource to Complete Exam Success!

Question: 1 / 605

Which of the following are components of total logistics costs?

Local delivery costs and primary transport costs

Distribution center storage costs and inventory carrying costs

Information system costs and local delivery costs

All of the above

Total logistics costs encompass a variety of components that represent all expenditures associated with the logistics process. This includes expenses related to transportation, inventory management, warehousing, and information systems.

The correct answer incorporates all relevant cost components outlined in the options. Local delivery costs are expenditures associated with transporting goods to the final customer, while primary transport costs cover the major transportation modalities and routes used to move products. Distribution center storage costs relate to the expenses incurred for storing goods in a distribution center, and inventory carrying costs are the costs related to maintaining an inventory, which can include storage, insurance, depreciation, and opportunity costs. Additionally, information system costs represent the investments made in technology and systems that facilitate logistics operations, including software and data management tools.

Since all these elements play significant roles in the logistics function and contribute to the overall financial performance of the organization, recognizing them collectively as integral components of total logistics costs is crucial for effective logistics and supply chain management.

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