CLP Inventory Control & Warehousing 3

Question 1

In warehousing, what does 'cross-docking' primarily eliminate?

Accepted Answer

Storage time by transferring goods directly from inbound to outbound

Answer

Cross-docking moves products directly from receiving docks to outbound trailers with little or no storage time.

Question 2

The economic order quantity (EOQ) model minimizes the total cost of:

Accepted Answer

Ordering and holding (carrying) costs

Answer

EOQ balances ordering costs (fixed per order) against holding costs (proportional to inventory level) to find the optimal order size.

Question 3

A FIFO inventory rotation policy is most critical for which type of product?

Accepted Answer

Perishable food items with expiration dates

Answer

FIFO ensures the oldest stock is used first, preventing expiration and spoilage of time-sensitive goods.

Question 4

Which document serves as the primary record of goods received into a warehouse from a supplier?

Accepted Answer

Goods receipt note (GRN)

Answer

A goods receipt note records details of items actually received, quantity, and condition, enabling three-way matching.

Question 5

What is 'shrinkage' in the context of inventory control?

Accepted Answer

Inventory loss due to theft, damage, administrative error, or spoilage

Answer

Shrinkage is the difference between recorded inventory and physical inventory, caused by theft, damage, or data errors.

(CLP) Certified Logistics Professional Practice Test