Test Database
Chapter 12 – Warehouse Management
True or False
1.
Warehousing must be considered as a strategic advantage as well as an operational function.
a. True
b. False
2.
In a cross-docking warehouse, products are received, processed, stored, and
then delivered to the customer.
a. True
b. False
3.
While warehouses are a significant cost source, the ability to provide inventory in the quantities, time, and place desired by the customer normally outweighs the cost.
a. True
b. False
4.
Postponement is the process of sorting received merchandise or unitizing it as
a prelude to stock put-away.
a. True
b. False
5.
Stockpiling is the process of converting products received in bulk or large
quantities into smaller quantity lot sizes.
a. True
b. False
6.
Warehouse size and warehouse capacity are the same thing.
a. True
b. False
7.
The actual capacity of a warehouse will normally be less than the total capacity.
a. True
b. False
8.
A way to increase total storage capacity in a warehouse without increasing facility dimensions is to design the warehouse so goods move in a straight line.
a. True
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b.
9.
False
Storage space should be based on the linear space inside the warehouse.
a. True
b. False
10. A use of flow racks for stock rotation is an example of gravity methods in
warehouse storage.
a. True
b. False
Multiple Choice
11. The consolidation of several item units into larger units for fewer handlings is called
a. Unitization.
b. Cube utilization.
c. Consolidation.
d. Packaging.
12. Which of the following is an advantage of using a third-party logistics
(3PL) provider for warehousing rather than internal logistics functions?
a. Increased control over outbound shipments
b. Better economies of scope and scale
c. Better flexibility for tailoring services to changing needs
d. Lower overhead costs and less bureaucracy
13. The warehouse storage equipment that provides maximum storage space
per square foot of warehouse floor is a
a. Forklift.
b. Automated guided vehicle system (AGVs).
c. Bridge crane.
d. Automated storage and retrieval system (AS/RS).
14. Which of the following might be a positive effect of adding more warehouses to a distribution channel?
a. Reduced overhead through economies of scale
b. Reduction in the ratio of inefficient facilities relative to total facilities
c. Reduced redundancies, leading to more storage space in relation to
total square feet
d. Improved customer service
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15. In general, which of the following is the most important consideration in
locating a warehouse?
a. Tax breaks from the municipality
b. Low labor costs in the area
c. Availability of services
d. Upgrade or construction costs
16. When a warehouse receives a shipment from a supplier and sends it immediately to a number of consignees, the operation is called which of the following:
a. Cross-docking
b. Spot stocking
c. Bulk breaking
d. Consolidation
17. Which of these costs would be directly incurred by a firm engaged in outsourcing?
a. Consolidation
b. Spot stocking
c. Bulk breaking
d. Cross-docking
18. Automated storage and retrieval systems (AS/RS) offer all the following
benefits except:
a. High storage density
b. Reduced theft
c. Error-free operation
d. Capital savings
19. A warehouse order picking option where pickers must fill all the lines of an
order before the next order is begun is termed:
a. Discrete
b. Batch
c. Zone
d. Wave
20. An example of good paperwork control in the receiving area is:
a. Accumulating receipts and bills of lading for batch receiving.
b. Checking the number of packages against the bill of lading before the
carrier leaves.
c. Using receiving manifests rather than referring to packing slips.
d. All of the above.
21. The capacity of a warehouse is usually measured by:
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a.
b.
c.
d.
The number of square feet (meters) of floor space
The flow rate of product shipped
The throughput time between entry and exit of goods
The cubic feet (meters) of total warehouse space
22. Allowance of an area for consolidating and staging orders and repackaging is
required for which of the following functions?
a. Strategic
b. High value
c. Customized
d. Highly standardized
23. The order-picking procedure where a number of people simultaneously pick
for a specific order is called?
a. Discrete order picking
b. Batch picking
c. Phased picking
d. Wave picking
24. Warehousing exists in the distribution environment primarily because of
a. Discontinuity of demand
b. Transportation effectiveness
c. Competitive pressures
d. Customer service
25. You are the warehouse manager for a company that has decided to offer a
promotion that is expected to last for six months. What type of warehousing
would you use to ensure that stock is available?
a. Private
b. Public
c. Contract
d. In transit
26. In developing a warehouse network, perhaps the most critical factor is:
a. Cost of inventory
b. Distance from the customer
c. Distance from supply warehouse or manufacturing plant
d. Cost of transportation
27. The principles of unitization specifies that
a. All materials handled should be reduced to the smallest, common unit
size.
b. Each unit should be handled individually as it moves to its destination.
c. The unit load should be designed so that the largest quantity possible is
handled.
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d.
Equipment should be designed to handle all possible unit sizes.
28. The term “unit load” would be best defined as:
a. A Single package of a product
b. The combining of many units of an item into a single unit
c. The maximum weight of a load for a given lift truck
d. The volume of a shipping trailer
29. A likely result of the application of unitization principles in a warehouse is:
a. A preventive maintenance program
b. A multishift operation
c. Minimized walking distances for pickers
d. Combining orders with the same destination
30. Products such as lengths of different pipe would be best stored on
a. Flow racks
b. AS/RS system
c. Bulk storage
d. Cantilever racks
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Answer Key
1. T
2. F
3. T
4. F
5. F
6. F
7. T
8. F
9. F
10. T
11. a
12. b
13. d
14. d
15. c
16. a
17. d
18. d
19. a
20. b
21. d
22. c
23. d
24. d
25. b
26. b
27. c
28. b
29. d
30. d