CLA Order Fulfillment and Distribution 2 — Questions and Answers
Question 1: What is cross-docking?
- Transferring inbound freight directly to outbound transportation with minimal or no storage time (Correct answer)
- Moving products between two warehouses within the same company
- Storing seasonal products in a temporary off-site facility
- Combining orders from two different customers into one shipment
Correct answer: Transferring inbound freight directly to outbound transportation with minimal or no storage time
Cross-docking is a fulfillment strategy where inbound goods are unloaded, sorted, and immediately loaded onto outbound vehicles, bypassing warehouse storage.
Question 2: What is a stock-keeping unit (SKU)?
- A unique identifier assigned to each distinct product for inventory tracking (Correct answer)
- The physical shelf location in a warehouse
- The number of units in a standard case pack
- A code assigned by the carrier for freight classification
Correct answer: A unique identifier assigned to each distinct product for inventory tracking
A SKU is a unique alphanumeric code assigned to a specific product variant (e.g., size, color) to enable accurate tracking and management in inventory systems.
Question 3: What does 'on-time in-full' (OTIF) measure in distribution?
- The percentage of orders delivered on time and with complete quantities as ordered (Correct answer)
- The accuracy of warehouse inventory counts
- The percentage of trucks loaded to full capacity
- The rate at which returned items are restocked
Correct answer: The percentage of orders delivered on time and with complete quantities as ordered
OTIF is a key performance indicator that measures whether orders were delivered both on the agreed date and with the full quantity requested.
Question 4: What is a backorder?
- An order for an item that is currently out of stock and will be fulfilled when inventory is replenished (Correct answer)
- An order that was returned by the customer
- A purchase order placed with a supplier for future delivery
- An order that was shipped but lost in transit
Correct answer: An order for an item that is currently out of stock and will be fulfilled when inventory is replenished
A backorder occurs when a customer's order cannot be immediately fulfilled because the item is out of stock, and the order is held until inventory is available.
Question 5: What is the role of a warehouse management system (WMS)?
- To control and optimize warehouse operations including receiving, storage, picking, and shipping (Correct answer)
- To manage supplier contracts and purchase orders
- To schedule carrier pickups and deliveries
- To track customer orders from placement through invoicing
Correct answer: To control and optimize warehouse operations including receiving, storage, picking, and shipping
A WMS is software that directs and tracks all activities within a warehouse, including inventory locations, picking instructions, labor management, and shipment processing.
Question 6: What is the purpose of a shipping label's barcode in a fulfillment operation?
- To enable automated scanning and tracking of the package throughout the delivery network (Correct answer)
- To display the product description for the end consumer
- To record the warehouse employee who packed the order
- To indicate the freight class for LTL shipments
Correct answer: To enable automated scanning and tracking of the package throughout the delivery network
The barcode on a shipping label encodes key data (order number, address, carrier routing) that allows scanners at each handling point to track and route the package automatically.
CLA Order Fulfillment and Distribution 2
What is cross-docking?