Distribution Management - Final Quiz 2

In a contract of carriage, the _________________ is the entity who is financially responsible for the receipt of a shipment.

In private warehousing, the property, facility, and accompanying storage and material handling equipment are owned and operated by the firm.

• True

• False

It causes the warehouse to digest uneven flows of material that require overflow staging areas and costly overtime.

The longer the lead time, the smaller the lot sizes, and the less the cost of carrying cycle inventories.

• True

• False

Normally, these warehouses are located close to the source of production or extraction or are at the distribution end of the pipeline where they are close to the consumer.

Contract warehousing is a form of private warehousing.

• True

• False

In this arrangement, the public warehouse guarantees either dedicated storage space in the facility isolated from other product/ customer storage by fences or other types of barriers, or a guarantee of general space, but not dedicated, except as is specified by the lessee.

The more efficient and the lower the cost of transportation, the higher the selling price.

• True

• False

These public warehouses offer clerical support for such activities as transaction recording; inventory management; order management, picking, and shipping; financial settlement and freight rating; and customer service.

This type of warehouse is usually characterized by limitations in total space and the complete absence of warehousing services.