Inventory Control & Warehousing Flashcards
7 cards from real CLP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Inventory Control & Warehousing flashcards as text
Under a vendor-managed inventory (VMI) arrangement, who is responsible for monitoring stock levels and triggering replenishment?
Answer: The supplier/vendor
In VMI, the supplier monitors the customer's inventory levels and initiates replenishment orders on the customer's behalf.
Which type of warehouse racking allows a forklift to drive inside the rack structure to access pallets, maximizing storage density?
Answer: Drive-in/drive-through racking
Drive-in racking eliminates aisles between rows, allowing forklifts to enter lanes and dramatically increasing storage density.
What inventory condition is described when demand cannot be met from available stock and the order must wait for replenishment?
Answer: Backorder
A backorder occurs when a customer order cannot be filled immediately due to insufficient inventory and is queued for future fulfillment.
Hazardous material (HAZMAT) storage in a warehouse must comply with regulations primarily to:
Answer: Prevent fires, chemical reactions, and exposure risks to personnel and the environment
HAZMAT storage regulations (e.g., OSHA, DOT, EPA) mandate segregation, labeling, and containment to prevent accidents and environmental contamination.
In warehouse picking operations, 'batch picking' means:
Answer: Picking items for multiple orders simultaneously in a single warehouse pass
Batch picking consolidates multiple orders into one picking trip, reducing travel time by collecting items for several orders at once.
Which concept describes the ideal warehouse inventory level where carrying costs are minimized without risking stockouts?
Answer: Optimal inventory level
The optimal inventory level balances holding costs against the risk of stockouts, often determined by EOQ and safety stock calculations.
A logistics manager notices high 'days on hand' (DOH) for several SKUs. This most likely indicates:
Answer: Excess inventory relative to current demand
High DOH means inventory is sitting longer than necessary, tying up capital and increasing the risk of obsolescence.