CBST Administration and Logistics 3 — Questions and Answers
Question 1: A warehouse has 5 rows of shelving with 12 sections per row. Each section holds up to 8 bins. If the warehouse is currently at 75% capacity, how many bins are in use?
- 360 bins (Correct answer)
- 450 bins
- 480 bins
- 300 bins
Correct answer: 360 bins
5 × 12 × 8 = 480 total bins; 480 × 0.75 = 360 bins in use.
Question 2: Which inventory management method assumes that the first items received are the first items sold or used?
- LIFO
- FIFO (Correct answer)
- Just-in-time
- Weighted average
Correct answer: FIFO
FIFO (First In, First Out) assumes goods received earliest are used or sold first, which is standard for perishable items.
Question 3: An employee earns $17.50 per hour and works 42 hours in a week. If overtime is paid at 1.5× for hours over 40, what is the gross pay?
- $735.00
- $752.50 (Correct answer)
- $762.50
- $700.00
Correct answer: $752.50
Regular: 40 × $17.50 = $700; Overtime: 2 × ($17.50 × 1.5) = $52.50; Total: $752.50.
Question 4: What is the purpose of a Safety Data Sheet (SDS) in a workplace?
- To track inventory levels of supplies
- To document the purchase price of materials
- To provide hazard information and safe handling instructions for substances (Correct answer)
- To record employee training completion dates
Correct answer: To provide hazard information and safe handling instructions for substances
An SDS informs workers about chemical hazards, proper handling, storage, and emergency procedures for workplace substances.
Question 5: A vendor quotes a 12% discount on an order of $875. What is the final price after the discount?
- $770.00 (Correct answer)
- $763.00
- $105.00
- $755.50
Correct answer: $770.00
$875 × 0.12 = $105 discount; $875 − $105 = $770 final price.
Question 6: In logistics, what does 'lead time' refer to?
- The time a senior manager spends planning orders
- The period between placing an order and receiving delivery (Correct answer)
- The number of items required before an order is placed
- The time required to inspect received goods
Correct answer: The period between placing an order and receiving delivery
Lead time is the elapsed time from when an order is placed to when goods are received and ready for use.
Question 7: A supply room log shows 200 units on hand at the start of the week. During the week, 85 units were issued and 40 units were received. What is the closing inventory?
- 145 units
- 155 units (Correct answer)
- 160 units
- 125 units
Correct answer: 155 units
200 − 85 + 40 = 155 units closing inventory.
CBST Administration and Logistics 3
A warehouse has 5 rows of shelving with 12 sections per row.
Each section holds up to 8 bins.
If the warehouse is currently at 75% capacity, how many bins are in use?