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Distribution Center Activities Quiz

Total questions: 65

Worksheet time: 12hrs 54mins

Name
Class
Date
1.

KPIs cannot be used in connection with distribution center activities as they do not provide tangible, relevant data.

a)

True

b)

False

2.

Purchase economies and transportation economies are not complementary.

a)

True

b)

False

3.

Customers use distribution KPIs to objectively assess the speed of service provided by the distribution operation.

a)

True

b)

False

4.

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.

a)

True

b)

False

5.

The ABC analysis is based on Pareto's law.

a)

True

b)

False

6.

Motor carrier cost is highly variable.

a)

True

b)

False

7.

Capital cost is also called interest or opportunity cost.

a)

True

b)

False

8.

One of the primary tradeoffs at the facility level is space versus equipment.

a)

True

b)

False

9.

Storage space costs are not variable.

a)

True

b)

False

10.

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.

a)

True

b)

False

11.

All modes of transportation provide the same basic service.

a)

True

b)

False

12.

Pipeline costs are predominantly fixed.

a)

True

b)

False

13.

Organizations may benefit substantially from the establishment of one or several warehouses to reduce transportation costs.

a)

True

b)

False

14.

Contract warehousing is different than 3PL warehousing.

a)

True

b)

False

15.

A common productivity is measured as the ratio of real output to real input.

a)

True

b)

False

16.

Railroad's length of haul is longer than that of motor carriers.

a)

True

b)

False

17.

Slotting is defined as the placement of product in a facility for the purpose of optimizing materials handling and space efficiency.

a)

True

b)

False

18.

MRPII will not allow an organization to integrate financial planning with operations and logistics.

a)

True

b)

False

19.

A key requirement for service quality monitoring is information.

a)

True

b)

False

20.

Proper product slotting can improve labor productivity and generate other advantages for the organization and its customers.

a)

True

b)

False

21.

Asset utilization is very important in a 3PL warehouse.

a)

True

b)

False

22.

Rail is the mode of transportation that is the fastest shipment travelling over 800 miles.

a)

True

b)

False

23.

JIT was developed in the U.S. and copied by the Japanese.

a)

True

b)

False

24.

Software tools related to the movement of goods across the supply chain are lumped together in a general category called transportation management systems (TMS).

a)

True

b)

False

25.

In comparison with the basic EOQ approach, the fixed interval model does not require close surveillance of inventory levels.

a)

True

b)

False

26.

Transportation efficiency promotes _____ in the supply chain.

a)
KPIs
b)

Capacity

c)

Comeptition

d)

Intermodal Demand

27.

As a product's susceptibility to loss and damage increases, its transportation cost:

a)

increases.

b)

decreases.

c)

stays the same.

d)

can't be determined.

28.

This mode of transportation is the one most often used in intermodal shipments.

a)

Air

b)

Motor carrier

c)

Rail

d)

Ocean

29.

In the event of a "stockout" one of the things that could happen is:

a)

the vendor's plant shuts down.

b)

the cost of capital is increased.

c)

the SCOR process would come into play.

d)

extra shipping cost may be incurred.

30.

One important interaction that must be considered is the tradeoff between distribution and _____.

a)
transportation
b)

finance

c)

marketing

d)

services

31.

The key financial consideration in choosing between private and 3PL distribution options is:

a)

warehouse location(s).

b)

competency of in-house staff.

c)

volume of product being moved.

d)

type of product being handled.

32.

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?

a)

Labor costs would increase

b)

Total transportation costs would increase

c)

Total inventory holding costs would increase

d)

Total packaging costs would increase

e)

None of these answers

33.

Dependent demand relates to:

a)

demand for another inventory item or product.

b)

the spare parts needed to fill the order.

c)

VMI inventories.

d)

the cost of capital for the firm.

34.

Challenges for the trucking industry include:

a)

lack of flexibility.

b)

limited equipment options.

c)

oversupply of qualified drivers.

d)

competition.

35.

The roles of the distribution center include _____.

a)

balancing supply and demand

b)

protecting against uncertainty and promoting transportation economies

c)

promoting transportation economies

d)

balancing supply and demand, protecting against uncertainty, and promoting transportation economies

36.

The fixed order interval EOQ model is best used for SKUs with:

a)

variable demand.

b)

stable demand.

c)

unknown demand.

d)

seasonal demand.

37.

As Q decreases for EOQ, the cost per order:

a)

increases

b)

decreases

c)

remains the same

d)

fluctuates

38.

The two largest cost centers in a DC are:

a)

equipment and space.

b)

labor and space.

c)

pallets and labor.

39.

A downside of direct shipping is:

a)

that it takes product flow away from the distribution center.

b)

can create higher transportation charges.

c)

that customers may not like this method.

d)

the product may not lend itself to this method.

40.

As the number of picks per order picker decreases on a given tour, his/her total time out _____ and the time per pick _____.

a)

decreases; decreases

b)

increases; increases

c)

decreases; increases

d)

increases; decreases

41.

This type of inventory is influenced by the reliability of demand and lead time.

a)

Cycle stock

b)

WIP

c)

Safety stock

d)

Seasonal stock

42.

The distances in today's global supply chains produce:

a)

higher cost.

b)

longer transit times.

c)

more disruptions.

d)

all of these answers.

43.

Inventory as an asset on the balance sheet and a _____ on the income statement.

a)

liability

b)

footnote

c)

statement

d)

variable expense

44.

Which management area in an organization does not normally have transportation responsibility?

a)

marketing

b)

manufacturing

c)

procurement

d)

logistics

45.

JIT is a _____ system.

a)

push

b)

Pareto's law

c)

MRP

d)

pull

46.

Seasonal stocks are not influenced by:

a)

EOQ.

b)

weather.

c)

transportation.

d)

holidays.

47.

WIP inventories:

a)

are not included on the balance sheet.

b)

are associated with manufacturing.

c)

are the same as VMI inventories.

d)

are not impacted by EOQ.

48.

The primary facility operations focus is:

a)

on the movement and storage of product.

b)

on inventory control and personnel issues.

c)

in making sure KPIs are fulfilled.

d)

the WMS system.

49.

The drawback of centralized inventory is:

a)

that it undercuts the dispersed distribution concept.

b)

that it increases the amount of inventory required.

c)

strains the ability of the carrier network.

d)

that it extends lead times and results in higher transportation costs.

50.

Batching economies or cycle stocks usually arise from three sources. Which of these is not a source?

a)

Procurement

b)

Transportation

c)

Production

d)

Demand

51.

When you want to get the goods which have just arrived you go to ...

a)

the shipping area

b)

the storage area

c)

the loading area

d)

the reception

52.

the opposite of loading is ...

a)

unloading

b)

downloading

c)

uploading

53.

When you ship an item you ...

a)

receive it

b)

get it

c)

send it

d)

dispatch it

54.

The place where you wrap the goods is the ...

a)

packaging area

b)

picking area

c)

shipping area

d)

loading area

55.

If you need to order some more goods, who do you call ?

a)

The supplier

b)

the customer

c)

the client

d)

the driver

56.

If the customer is not happy with his goods he can ask for a ...

a)

replay

b)

return

c)

refund

d)

repair

57.

When you make a booking you

a)

reserve

b)

cancel

c)

refund

d)

invest

58.

Today you need to prepare

a)

the orders

b)

the trucks

c)

the vans

d)

the cars

59.

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.

a)

true

b)

false

60.

dispatch/despatch

a)

to send someone or something somewhere for a particular purpose

b)

sell something

c)

receive something

61.

What is it?

a)

gantry crane

b)

modular rack

c)

conveyor

62.

What is it?

a)

conveyor

b)

hand pallet truck

c)

reach stacker

63.

a)

hand pallet truck

b)

conveyor

c)

modular rack

64.

What is it?

a)

reach stacker

b)

loading bay

c)

towing tractor

d)

modular rack

65.

What is it?

a)

wrapping

b)

foil

c)

crate

d)

paper bag