CEC Supply Chain & Fulfillment 3

Question 1

What is 'cross-docking' in a warehouse fulfillment operation?

Accepted Answer

Transferring incoming shipments directly to outbound vehicles with minimal storage time

Answer

Cross-docking minimizes storage time by unloading inbound shipments and immediately loading them onto outbound transport.

Question 2

An ecommerce merchant's carrying cost of inventory typically includes which of the following?

Accepted Answer

Storage fees, insurance, obsolescence, and opportunity cost of capital

Answer

Inventory carrying costs encompass warehousing, insurance, shrinkage, obsolescence risk, and the cost of capital tied up in stock.

Question 3

What is the primary purpose of an EDI (Electronic Data Interchange) system in supply chain management?

Accepted Answer

To electronically exchange standardized business documents between trading partners

Answer

EDI enables automated, standardized document exchange (purchase orders, invoices, ASNs) between suppliers, retailers, and logistics partners.

Question 4

Which approach to ecommerce returns management is considered best practice for customer retention?

Accepted Answer

Offering a prepaid return label and fast refund processing

Answer

Hassle-free returns with prepaid labels and prompt refunds significantly improve customer loyalty and repeat purchase rates.

Question 5

What is 'kitting' in warehouse fulfillment operations?

Accepted Answer

Assembling multiple individual items into a single packaged unit before shipping

Answer

Kitting combines separate SKUs into a bundled product unit, reducing pick time and enabling bundle offers for customers.

(CEC) Certified Ecommerce Consultant Practice Test