Logistics and Distribution Flashcards

Which ocean freight service type offers a fixed sailing schedule between specific ports, similar to a bus route?

Answer: Liner service

Liner services operate on fixed routes with published schedules and tariffs, providing predictable transit times for shippers.

Under a consignment inventory arrangement, who owns the inventory while it sits in the buyer's warehouse?

Answer: The seller/supplier

In a consignment arrangement, the supplier retains ownership of inventory until the buyer sells or uses it, at which point payment is triggered.

A warehouse management system (WMS) directive that instructs a picker to use a combination of tote, voice, and light-based cues is implementing:

Answer: Multi-modal directed picking

Multi-modal directed picking combines different guidance technologies (pick-to-light, voice, RF) to optimize accuracy and speed across various warehouse zones.

The practice of delaying final product differentiation until the latest possible point in the supply chain is called:

Answer: Postponement

Postponement defers value-added activities (labeling, assembly, configuration) until customer demand is known, reducing inventory risk.

A company uses a carrier that transports freight under a specific agreed-upon rate and service level for a set period. This arrangement is a:

Answer: Contract carrier agreement

A contract carrier agreement establishes negotiated rates and service commitments between a shipper and carrier for a defined period, offering rate stability.

Which document serves as both a receipt for cargo and a contract of carriage in ocean freight?

Answer: Bill of lading

A bill of lading (B/L) functions as a receipt of goods by the carrier, a contract of carriage, and sometimes a document of title for the cargo.

Cross-docking eliminates which primary warehouse activity?

Answer: Putaway and storage

Cross-docking transfers incoming shipments directly to outbound vehicles without storing them, eliminating the putaway and storage steps.