COP Inventory Control & Fulfillment Procedures 3

Question 1

A company ships fragile electronics using UPS. The package is damaged in transit. Which party must file the carrier damage claim?

Accepted Answer

The shipper (seller), as the contracting party with the carrier

Answer

The shipper, who has the contract with the carrier, is typically responsible for filing damage claims, though FOB terms can shift this responsibility.

Question 2

What does the term 'pick accuracy rate' measure in a fulfillment operation?

Accepted Answer

The percentage of order lines picked without error

Answer

Pick accuracy rate is the percentage of order lines fulfilled with the correct item, quantity, and condition — a key quality KPI.

Question 3

Under FOB Destination terms, when does title and risk of loss transfer from seller to buyer?

Accepted Answer

When the goods arrive at the buyer's specified destination

Answer

FOB Destination means the seller retains title and risk until the goods physically arrive at the buyer's destination.

Question 4

Which inventory control technique uses data analysis to classify items so that the top 20% of SKUs receiving the most management attention typically represent 80% of inventory value?

Accepted Answer

ABC Analysis (Pareto Principle)

Answer

ABC Analysis applies the Pareto Principle, classifying 'A' items as high-value SKUs requiring close control and 'C' items as low-value needing minimal oversight.

Question 5

A warehouse management system (WMS) generates a 'directed put-away' task. What is the primary benefit of this feature?

Accepted Answer

It automatically selects the optimal storage location based on rules like slotting, velocity, and available space

Answer

Directed put-away uses pre-defined rules to assign incoming inventory to the optimal location, improving pick efficiency and space utilization.

(COP) Certified Order Processor Practice Test

(COP) Certified Order Processor Practice Test

COP Inventory Control & Fulfillment Procedures 3