WorksheetsDistribution Center Activities Quiz
Total questions: 65
Worksheet time: 12hrs 54mins
KPIs cannot be used in connection with distribution center activities as they do not provide tangible, relevant data.
True
False
Purchase economies and transportation economies are not complementary.
True
False
Customers use distribution KPIs to objectively assess the speed of service provided by the distribution operation.
True
False
Inventory plays a dual role in organizations. Inventory impacts the cost of goods sold as well as supporting the balance sheet, a new concept only recently receiving attention.
True
False
The ABC analysis is based on Pareto's law.
True
False
Motor carrier cost is highly variable.
True
False
Capital cost is also called interest or opportunity cost.
True
False
One of the primary tradeoffs at the facility level is space versus equipment.
True
False
Storage space costs are not variable.
True
False
Ordering cost refers to the expense of placing an order for additional inventory and does not include the cost or expense of the product itself.
True
False
All modes of transportation provide the same basic service.
True
False
Pipeline costs are predominantly fixed.
True
False
Organizations may benefit substantially from the establishment of one or several warehouses to reduce transportation costs.
True
False
Contract warehousing is different than 3PL warehousing.
True
False
A common productivity is measured as the ratio of real output to real input.
True
False
Railroad's length of haul is longer than that of motor carriers.
True
False
Slotting is defined as the placement of product in a facility for the purpose of optimizing materials handling and space efficiency.
True
False
MRPII will not allow an organization to integrate financial planning with operations and logistics.
True
False
A key requirement for service quality monitoring is information.
True
False
Proper product slotting can improve labor productivity and generate other advantages for the organization and its customers.
True
False
Asset utilization is very important in a 3PL warehouse.
True
False
Rail is the mode of transportation that is the fastest shipment travelling over 800 miles.
True
False
JIT was developed in the U.S. and copied by the Japanese.
True
False
Software tools related to the movement of goods across the supply chain are lumped together in a general category called transportation management systems (TMS).
True
False
In comparison with the basic EOQ approach, the fixed interval model does not require close surveillance of inventory levels.
True
False
Transportation efficiency promotes _____ in the supply chain.
Capacity
Comeptition
Intermodal Demand
As a product's susceptibility to loss and damage increases, its transportation cost:
increases.
decreases.
stays the same.
can't be determined.
This mode of transportation is the one most often used in intermodal shipments.
Air
Motor carrier
Rail
Ocean
In the event of a "stockout" one of the things that could happen is:
the vendor's plant shuts down.
the cost of capital is increased.
the SCOR process would come into play.
extra shipping cost may be incurred.
One important interaction that must be considered is the tradeoff between distribution and _____.
finance
marketing
services
The key financial consideration in choosing between private and 3PL distribution options is:
warehouse location(s).
competency of in-house staff.
volume of product being moved.
type of product being handled.
If a DC that picks primarily cases switches to mostly broken cases (with the same items), which of the following would occur in the DC?
Labor costs would increase
Total transportation costs would increase
Total inventory holding costs would increase
Total packaging costs would increase
None of these answers
Dependent demand relates to:
demand for another inventory item or product.
the spare parts needed to fill the order.
VMI inventories.
the cost of capital for the firm.
Challenges for the trucking industry include:
lack of flexibility.
limited equipment options.
oversupply of qualified drivers.
competition.
The roles of the distribution center include _____.
balancing supply and demand
protecting against uncertainty and promoting transportation economies
promoting transportation economies
balancing supply and demand, protecting against uncertainty, and promoting transportation economies
The fixed order interval EOQ model is best used for SKUs with:
variable demand.
stable demand.
unknown demand.
seasonal demand.
As Q decreases for EOQ, the cost per order:
increases
decreases
remains the same
fluctuates
The two largest cost centers in a DC are:
equipment and space.
labor and space.
pallets and labor.
A downside of direct shipping is:
that it takes product flow away from the distribution center.
can create higher transportation charges.
that customers may not like this method.
the product may not lend itself to this method.
As the number of picks per order picker decreases on a given tour, his/her total time out _____ and the time per pick _____.
decreases; decreases
increases; increases
decreases; increases
increases; decreases
This type of inventory is influenced by the reliability of demand and lead time.
Cycle stock
WIP
Safety stock
Seasonal stock
The distances in today's global supply chains produce:
higher cost.
longer transit times.
more disruptions.
all of these answers.
Inventory as an asset on the balance sheet and a _____ on the income statement.
liability
footnote
statement
variable expense
Which management area in an organization does not normally have transportation responsibility?
marketing
manufacturing
procurement
logistics
JIT is a _____ system.
push
Pareto's law
MRP
pull
Seasonal stocks are not influenced by:
EOQ.
weather.
transportation.
holidays.
WIP inventories:
are not included on the balance sheet.
are associated with manufacturing.
are the same as VMI inventories.
are not impacted by EOQ.
The primary facility operations focus is:
on the movement and storage of product.
on inventory control and personnel issues.
in making sure KPIs are fulfilled.
the WMS system.
The drawback of centralized inventory is:
that it undercuts the dispersed distribution concept.
that it increases the amount of inventory required.
strains the ability of the carrier network.
that it extends lead times and results in higher transportation costs.
Batching economies or cycle stocks usually arise from three sources. Which of these is not a source?
Procurement
Transportation
Production
Demand
When you want to get the goods which have just arrived you go to ...
the shipping area
the storage area
the loading area
the reception
the opposite of loading is ...
unloading
downloading
uploading
When you ship an item you ...
receive it
get it
send it
dispatch it
The place where you wrap the goods is the ...
packaging area
picking area
shipping area
loading area
If you need to order some more goods, who do you call ?
The supplier
the customer
the client
the driver
If the customer is not happy with his goods he can ask for a ...
replay
return
refund
repair
When you make a booking you
reserve
cancel
refund
invest
Today you need to prepare
the orders
the trucks
the vans
the cars
The 7 Key Warehouse Processes
Receiving. The act of handling products into a warehouse and onto a system. ... Put-Away.
A good system will prompt put-away staff with a note indicating that
stock is in staging waiting to be transported to a storage location. ...
Picking. ... Packing. ... Dispatching. ... Returns. ... Value-Adding.
true
false
dispatch/despatch
to send someone or something somewhere for a particular purpose
sell something
receive something
What is it?
gantry crane
modular rack
conveyor
What is it?
conveyor
hand pallet truck
reach stacker
hand pallet truck
conveyor
modular rack
What is it?
reach stacker
loading bay
towing tractor
modular rack
What is it?
wrapping
foil
crate
paper bag
