Topic 10
A "smart" WMS won't let the picker move to the next item until picking mistakes have been corrected.
true
A comprehensive warehouse management system (WMS) can provide decision support for activities performed throughout the warehouse, from the point of receiving, to put-away, picking, and shipping.
true
Breakbulk warehouses enable you to maximize the total ton-miles you ship by much less expensive LTL transportation.
true
Grain silos and chemical storage tanks represent forms of warehousing.
true
Inventory that is left overnight in a cross-dock is often called "Frustrated Freight."
true
Warehouses let you separate production from consumption, enabling you to take advantage of Production Economies of scale.
true
All of the following are good examples of visual managment except what? a. Watching customers complain about poor service b. Delineating where items should reside in the work environment when they are not in use c. Using kanban systems to signal inventory replenishment d. Presenting work steps through pictures e. Illustrating normal and abnormal outcomes to a work step
a
For a consumer goods company seeking to reduce the distance to U.S. population from a single location using a center-of-gravity approach, which city would offer the best choice for this facility? a. Cincinnati, Ohio b. Topeka, Kansas c. Dallas, Texas d. Buffalo, New York e. Denver, Colorado
a
Which kind of warehouse arrangement is likely to have the greatest fixed cost for a company? a. Building a private automated warehouse b. Leasing a warehouse c. Long-term public warehousing d. Long-term contract warehousing e. Building a private warehouse to support manual operations
a
Which reason below justifies the use of contract warehousing? a. It allows the company a degree of control yet is less expensive than private warehousing. b. It requires more in-depth negotiations than public warehousing to secure. c. It provides the warehouse customer with greater control than private warehousing. d. It demonstrates a greater commitment to customers than buying a private warehouse. e. The risks of inventory loss and damage are minimal in contract warehousing.
a
A visual signal that indicates an incorrect quantity of parts is about to be shipped to customers, allowing the operator to correct the problem before it is detected by a customer is an example of what? a. Kaizen b. Poka yoke c. Value stream remedy d. Heijunka e. Muda
b
How does warehousing enable you to take advantage of production economies? a. Warehouses require large buildings. b. Warehouses allow you to produce in large quantities and store the product until it is sold. c. Warehouses enable you to ship in full truckload quantities. d. All of the above e. Only A and C
b
What does the Square Root of N Rule show? a. 80% of sales comes from 20% of customers b. Safety stock rises as the number of stocking locations goes up c. Transportation costs increase when logistics is outsourced d. Customer loyalty increases with additional warehouse locations e. customer service levels increase with more inventory
b
What is the name given to information applications that coordinate the activity within a warehouse facility? a. Online merchandising network b. Warehouse management system c. Ship-and-save system d. Quick response mechanism e. Enterprise resource plan
b
Several costs factor into determining how many warehouses a firm needs to serve its customers. Which of the following is an opportunity cost associated with that decision? a. Warehouse costs b. Inventory costs c. Transportation costs d. Cost of lost sales e. Workers' compensation costs
d
What is the most common platform used in the shipping and handling of bundled products in a supply chain? a. Plastic pallets b. Plastic totes c. Metal racks d. Wooden pallets e. Steel bins
d
What kind of warehouse facility performs very differently from a conventional warehouse by receiving inventory and shipping it out in the same day? a. Rapid-flow warehouse b. Product mixing facility c. Mix-and-match warehouse d. Cross-dock e. High-rise warehouse
d
Which alternative provides value-added warehousing and logistics services by a comprehensive third-party logistics (3PL) firm? a. New millennium warehousing b. Common warehousing c. Private warehousing d. Contract warehousing e. Substantiated warehousing
d
Which of the following happens when you add additional warehouses to your distribution network? a. You cancel out the portfolio effect at individual warehouses b. You increase your total network safety stock c. You decrease the safety stock at each distribution center d. All of the above e. Only A and B
d
Which of the following is a popular value-added service performed in modern warehousing? a. Mass customization b. Final Assembly c. Repair d. All of the above e. Only A and B
d
Which of the following is the least productive use of warehouses? a. Supply mixing b. Product mixing c. Outbound consolidation d. Reduce investment in labor and equipment e. Inbound consolidation
d
A Red Tag Initiative is a lean activity that is designed to prioritize resources. You simply invite every member of your team to go through the facility and apply a red tag to the activities or resources that are most important to effective warehouse operations.
false
Case-pick and pallet-pick warehouses will have the same layout and flow of inventory.
false
Cost is the only significant consideration that a company must factor into its decision to own and operate a warehouse, as opposed to hiring an outside firm.
false
Each of the different kind of fill rate metrics provides the same insight into your order fulfillment capabilities and performance. Therefore, it doesn't matter which fill-rate metric you use.
false
Economic globalization and technology diffusion has led to the homogenization of warehousing practices in countries like Argentina, India, and the U.S.
false
Just like in the movies, warehouses tend to be dark, dingy, and cavernous places to work.
false
The item fill rate for an item that is shipped complete 6 times out of 10 orders, and ships 55 units out of the 100 requested in the 10 orders, is 60 percent.
false
Warehousing is a niche logistics activity. That is, warehousing is NOT big business in industrialized countries.
false
Menu pricing refers to which of the following? a. Paying only for the space and service that you use. b. Ordering lunch from the warehouse cafeteria. c. Ordering warehousing services over the Internet. d. Intensely competitive negotiations designed to get the lowest price possible from a warehouser.
a
What does the Lean principle of 5S dictate? a. A safe and orderly work environment is also an efficient work environment b. Statistics drive improvement in warehouse operations c. Five phases of order fulfillment operations is most efficient d. Japanese ways of doing business are always more efficient than American methods e. Warehouses must have five degrees of redundancy in operations given uncertainty in satisfying customers
a
What inventory method rotates inventory in order to minimize your risk of owning out-of-fashion merchandise. a. First-in first-out (FIFO) b. Last-in first out (LIFO) c. Reverse-logistics d. Inside-out inventory e. Reverse-to-active (RTA) storage
a
Which of the following companies launched Six Sigma? a. Motorola b. Panasonic c. Toyota d. Hewlett Packard e. Walmart
a
Which warehouse activity involves the selection of particular stock items needed to fulfill a customer order? a. Order picking b. Stockpiling c. Storage placement d. Warehouse shopping e. Cross-docking
a
Which warehouse operation supports the mass customization of products in distribution centers once a customer order is placed? Customized packaging of water bottles with private labels is one example of this kind of operation. a. Form postponement b. Accumulating c. Containerization of freight d. Contract warehousing e. Materials handling
a
A cross-dock operation that receives truckload volumes of finished goods from a variety of consumer goods manufacturers and ships truckload volumes of assorted products to nearby retailers would be an example of a warehouse facility that serves which two purposes for the manufacturers? a. Supply mixing and inbound consolidation b. Product mixing and outbound consolidation c. Supply mixing and product mixing d. Product mixing and long-term storage e. Inbound consolidation and equipment utilization
b
What do we call the mathematical expression that predicts the relationship between the number of warehouses and the amount of safety stock inventory that a company can expect to maintain? a. Portfolio Effect b. Square Root of N Rule c. Center-of-Gravity Effect d. Pareto Rule e. Greenhut Effect
b
What form of warehousing is owned by the firm? a. Public b. Private c. Contract d. Multi-client e. Third-party
b
When does public warehousing makes more sense than private warehousing? a. Volume is high and very predictable with little variation in demand b. Volume is low with high variability in demand and significant seasonality c. Customers are close to your facility and products are not seasonal d. Customer service requirements are low and market density is high e. Products are valuable and require high level of security
b
Which of the following is NOT a classic warehouse layout principle? a. Minimize distance b. Maximize aisle space c. Create a smooth flow d. Use a single story e. None of the above; that is, they are all classic principles of warehouse design.
b
Which of the following is a primary role of a breakbulk warehouse? a. Create easy flow through of inventory through the warehouse. b. Receive large-volume truckload (TL) shipments and break them down for shipping to different customers. c. Perform value-added services like labeling and final assembly. d. Help companies avoid paying customs duties on imported products.
b
Which of the following is a relatively new function performed in many warehouses? a. Receipt of goods b. Product processing for final assembly c. Transferring products to storage d. Order picking e. Order staging for shipment
b
Which order fulfillment performance metric examines the orders picked, packed, and shipped perfectly? a. On-time delivery b. Order accuracy c. Order cycle time d. Perfect order completion e. Order fill rate
b
Which term refers to the volume of material or product that moves through a warehouse facility over a given time? a. Supply chain quantities b. Throughput c. Transit inventory d. Work-in-process e. Finished goods
b
Why is the determination of the appropriate size of a private warehouse so important? a. It is impossible to change the capacity of a warehouse. b. It is a decision that you will probably live with for many years. c. Public warehouse space is almost impossible to find in most areas. d. You can never lease your excess capacity. e. Property taxes as a function of square footage are negligible (very low).
b
Highly automated warehouses tend to be . . .? a. Located in remote locations b. Highly seasonal facilities c. High volume facilities d. Low overhead cost e. All of the above
c
What do we call a warehouse that uses automated forklifts that move up and down each aisle putting pallets in assigned racks? a. A cross dock b. A customs warehouse c. An automated warehouse d. A warehouse management system e. A flexible warehouse
c
What is the tool called that is used to help identify the optimal location for a DC based on the locations and sales volumes of customers? a. Mix-and-match model b. Supply chain map c. Center-of-gravity model d. Diffusion model e. Centrifuge model
c
Which kind of warehouse allows a company to keep imported merchandise for a certain period of time without paying duties or tariffs? a. Distribution center b. Duty-free shop c. Customs warehouse d. Raw materials warehouse e. Consolidation warehouse
c
Which kind of warehouse arrangement is likely to have the highest variable cost for a company? a. Building a private automated warehouse b. Leasing a warehouse c. Short-term public warehousing d. Long-term contract warehousing e. Building a private warehouse to support manual operations
c
Which of the following activity costs tends to decrease as we add warehouses to a distribution network and, then, increases such that it forms a "U" shape? a. Warehouse costs b. Inventory costs c. Transportation costs d. Cost of lost sales e. Order processing costs
c
Which of the following is NOT a traditional warehouse activity? a. Receiving b. Putaway c. Mass transit d. Consolidating and staging e. Loading and shipping
c
Which order fulfillment performance metric measures the time from order placement to customer receipt of delivery? a. On-time delivery b. Order accuracy c. Order cycle time d. Perfect order completion e. Order fill rate
c
Which scenario below would suggest building your own private warehouse as opposed to using public warehouse space in a particular location? a. Space is required for product storage only and there are low customer service requirements b. There are low throughput volumes and low market density c. There are high customer service requirements and a need for a regional sales headquarters d. There is fluctuating demand and low market density e. Your products require no special materials handling and have low security needs
c
Many of the common metrics used in order fulfillment performance in warehousing are also used in what other area? a. Cross-dock performance b. Customer service performance c. Warehouse productivity performance d. All of the above e. None of the above
d
The primary purpose a breakbulk facility is to: a. Perform value-added processing to products in-transit b. To reduce the time of shipping from the supplier to customers c. To reduce the amount of product handling from supplier to customers d. To reduce the summed cost of transportation and warehousing e. All of the above
d
Which order fulfillment performance metric measures the percentage of orders delivered without changes, damage, or invoice errors? a. On-time delivery b. Order accuracy c. Order cycle time d. Perfect order completion e. Customer satisfaction
d
Cross-docking can achieve which of the following? a. Reduced warehousing cost b. Reduced inventory investment c. Improved inventory flow and velocity d. Improved synchronization between supply and demand e. All of the above
e
The warehouse activity that converts generic products into a wide assortment of unique items is called: a. Form postponement b. Mass customization c. Delayed gratification d. Order selection e. Only A and B
e
What type of warehouse serves as a regional distribution point, where truckloads ship freight inbound with the local deliveries via less-than-truckload transportation? a. Liquidation warehouse b. Distribution center c. Customs warehouse d. Raw materials warehouse e. Breakbulk warehouse
e
Which factor below would suggest the construction of a smaller (rather than larger) warehouse? a. Many markets served b. Fewer stock keeping units (SKUs) carried c. The need for economies-of-scale in warehousing and materials handling d. Long production lead times e. Higher levels of customer service expected
e
Which of the following is a principle of efficient product placement in the warehouse? a. Products that are common to many orders should not be placed near one another b. Fast moving products should be placed in remote storage areas c. You should use zig-zag routing for order retrieval d. Be sure to stack high-value, fragile products e. Place fast-moving items in dedicated slots
e
Which of the following is not a good reason for warehousing? a. Allows economies-of-scale in transportation and production b. Enables smoother coordination of supply and demand c. Supports customer service requirements d. Allows firm to take advantage of quantity purchase discounts e. To keep inventories for the sake of obsolescence
e
Which of the following technologies would you likely find in a modern warehouse? a. AS/RS system b. Radio frequency system c. Pick-to-light systems d. Conveyor belts e. All of the above f. Only B and D
e
How does warehousing enable you to take advantage of transportation economies? a. Warehousing lets you ship in less-than-truckload quantities. b. Warehouses enable you to receive full inbound shipments, which can be broken down and stored. c. Warehouses allow you to consolidate outbound shipments, helping you ship in full truckload quantities. d. Warehouses let you produce in large quantities. e. All of the above f. Only B and C
f
What role does radio frequency technology play in warehouse operations? a. Help pickers identify the right product to select to fill an order b. Help verify stocking location during putaway c. Communicate to warehouse workers when it is time to take a break d. Communicate to customers when an order is shipped e. All of the above f. Only A and B
f
A Walmart flow-through DC is more than one million square feet in size (approximately 18 football fields under one roof) and uses 5-12 miles of conveyor belts to move hundreds of thousands of cases through the facility every day.
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