CPL Transportation, Distribution & Warehousing 2 — Questions and Answers
Question 1: Which freight consolidation strategy combines multiple small shipments from different shippers into one truckload moving to the same destination area?
- Pool distribution (Correct answer)
- Cross-docking
- Break-bulk
- Milk run
Correct answer: Pool distribution
Pool distribution consolidates shipments from multiple shippers into a single load moving toward a common destination region, reducing per-unit freight costs.
Question 2: Under the Uniform Commercial Code (UCC), which shipping term places the risk of loss on the buyer once the seller delivers goods to the carrier?
- FOB Destination
- FOB Shipping Point (Correct answer)
- CIF
- DDP
Correct answer: FOB Shipping Point
FOB Shipping Point transfers risk of loss to the buyer when the seller hands goods to the carrier at the point of origin.
Question 3: A warehouse uses a perpetual inventory system. Which document initiates the physical movement of goods out of storage to fulfill an order?
- Purchase order
- Bill of lading
- Pick list (Correct answer)
- Receiving report
Correct answer: Pick list
A pick list (or pick ticket) directs warehouse workers to specific locations and quantities of items to retrieve for an outbound order.
Question 4: Which transportation mode offers the lowest cost per ton-mile for bulk commodities over long distances?
- Truck
- Rail (Correct answer)
- Air
- Pipeline
Correct answer: Rail
Rail transport consistently delivers the lowest cost per ton-mile for bulk commodities over long distances due to high capacity and fuel efficiency.
Question 5: In distribution center operations, the 'golden zone' refers to the storage location that:
- Generates the highest lease revenue
- Minimizes picker travel for fast-moving SKUs (Correct answer)
- Stores the highest-value inventory
- Is closest to the loading dock
Correct answer: Minimizes picker travel for fast-moving SKUs
The golden zone (waist-to-shoulder height) minimizes bending and reaching time for pickers and is reserved for high-velocity SKUs to maximize picking efficiency.
Question 6: A shipper negotiates a contract carrier arrangement instead of using a common carrier. The primary advantage is:
- Lower published tariff rates
- Dedicated capacity and customized service terms (Correct answer)
- Access to more diverse routes
- Exemption from federal safety regulations
Correct answer: Dedicated capacity and customized service terms
Contract carriers provide dedicated capacity and negotiate customized service terms tailored to the shipper's specific needs, unlike common carriers who serve the general public.
Question 7: Which warehousing cost is considered a 'carrying cost' of inventory?
- Inbound freight charges
- Order processing labor
- Storage space and insurance (Correct answer)
- Supplier setup fees
Correct answer: Storage space and insurance
Storage space rent/depreciation and inventory insurance are classic inventory carrying costs, typically expressed as a percentage of average inventory value.
CPL Transportation, Distribution & Warehousing 2
Which freight consolidation strategy combines multiple small shipments from different shippers into one truckload moving to the same destination area?