CLP Inventory Control & Warehousing 4

Question 1

Which inventory costing method assigns the most recent purchase costs to cost of goods sold during periods of rising prices?

Accepted Answer

LIFO

Answer

LIFO (Last In, First Out) uses the newest (highest) costs for COGS, resulting in lower reported profit during inflation.

Question 2

A warehouse manager wants to reduce 'honeycombing' losses. What does honeycombing refer to?

Accepted Answer

Unused cubic space created when only some positions in a storage lane are occupied

Answer

Honeycombing is wasted storage space that occurs when partially empty lanes or slots cannot be filled by other products.

Question 3

What is the primary function of a Warehouse Management System (WMS)?

Accepted Answer

Directing and tracking warehouse operations including receiving, putaway, picking, and shipping

Answer

A WMS orchestrates warehouse workflows, optimizes space use, and provides real-time visibility into inventory location and status.

Question 4

Lead time demand is used in inventory management to calculate:

Accepted Answer

The reorder point

Answer

The reorder point equals average demand during lead time plus safety stock, ensuring replenishment arrives before stockout.

Question 5

Which receiving process verifies that incoming quantities match the purchase order without referencing expected quantities in advance?

Accepted Answer

Blind receiving

Answer

Blind receiving requires workers to count and record actual quantities independently, preventing rubber-stamping of expected amounts.

(CLP) Certified Logistics Professional Practice Test