CLA Order Fulfillment and Distribution 2

Question 1

What is cross-docking?

Accepted Answer

Transferring inbound freight directly to outbound transportation with minimal or no storage time

Answer

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)?

Accepted Answer

A unique identifier assigned to each distinct product for inventory tracking

Answer

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?

Accepted Answer

The percentage of orders delivered on time and with complete quantities as ordered

Answer

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?

Accepted Answer

An order for an item that is currently out of stock and will be fulfilled when inventory is replenished

Answer

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)?

Accepted Answer

To control and optimize warehouse operations including receiving, storage, picking, and shipping

Answer

A WMS is software that directs and tracks all activities within a warehouse, including inventory locations, picking instructions, labor management, and shipment processing.

(CLA) Certified Logistics Associate Practice Test

(CLA) Certified Logistics Associate Practice Test

CLA Order Fulfillment and Distribution 2