Logistics and Supply Chain Chapter 10

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. All of the above

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. Only A and B

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. Building a private automated warehouse

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. Form postponement

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. It is a decision that you will probably live with for many years.

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. Maximize aisle space

How does warehousing enable you to take advantage of production economies? a. Warehouses are very large buildings that enable you to perform final assembly for very large quantities of products. 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. Warehouses allow you to produce in large quantities and store the product until it is sold

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. Transportation costs

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. All of the above

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. All of the above

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. Cross-dock

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. All of the above

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. Only B and C

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. True or False?

False

Breakbulk warehouses enable you to maximize the total ton-miles you ship by much less expensive LTL transportation. True or False?

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. True or False?

False

Economic globalization and technology diffusion has led to the homogenization of warehousing practices in countries like Argentina, India, and the U.S. True or False?

False

Just like in the movies, warehouses tend to be dark, dingy, and cavernous places to work. True or False

False

Warehousing is a niche logistics activity. That is, warehousing is NOT big business in industrialized countries. True or False?

False

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. True or False?

True

Inventory that is left overnight in a cross-dock is often called "Frustrated Freight." True or False?

True

Warehouses let you separate production from consumption, enabling you to take advantage of Production Economies of scale. True or False?

True

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. High volume facilities

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. Mass transit

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. It allows the company a degree of control yet is less expensive than private warehousing.

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. Order picking

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. Paying only for the space and service that you use

Many of the common metrics used in order fulfillment performance in warehousing are also used in . . .? a. Cross-dock performance b. Customer service performance c. Warehouse productivity performance d. All of the above e. None of the above

b. Customer service performance

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. Product mixing and outbound consolidation

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. Receive large-volume truckload (TL) shipments and break them down for shipping to different customers.