Practice Test Geeks(CWLP) Certified Warehouse and Logistics Professional Practice Test
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Inventory Management & Control Flashcards

7 cards from real CWLP 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 Management & Control flashcards as text

  1. What is 'consignment inventory' in a supply chain context?

    Answer: Supplier-owned inventory stored at the buyer's location, paid for only upon use or sale

    Consignment inventory remains the supplier's property until the buyer uses or sells it, reducing the buyer's carrying cost and financial risk.

  2. Which inventory management practice involves suppliers monitoring stock levels and triggering replenishment orders on behalf of the buyer?

    Answer: Vendor-Managed Inventory (VMI)

    VMI shifts replenishment responsibility to the supplier, who monitors inventory levels and initiates orders to maintain agreed stock levels.

  3. A warehouse records 4,800 units in its system but a physical count finds only 4,608. What is the inventory accuracy rate?

    Answer: 96.0%

    Inventory accuracy = (4,608 ÷ 4,800) × 100 = 96.0%, meaning 96% of recorded inventory matches the physical count.

  4. Which storage strategy assigns incoming inventory to the nearest available location rather than a dedicated fixed slot?

    Answer: Random (chaotic) storage

    Random or chaotic storage assigns products to any open location, maximizing space utilization but requiring a WMS to track item positions.

  5. In lot traceability, a lot number primarily enables a warehouse to:

    Answer: Track and recall specific production batches if a quality issue arises

    Lot numbers link products to specific production or receipt batches, enabling targeted recalls and quality issue isolation.

  6. The 'bullwhip effect' in inventory management describes:

    Answer: Amplification of demand variability as orders move upstream through the supply chain

    The bullwhip effect occurs when small fluctuations in end-customer demand cause progressively larger swings in orders placed by upstream supply chain partners.

  7. What does FEFO (First Expired, First Out) prioritize in warehouse picking operations?

    Answer: Shipping items with the earliest expiration dates before those with later dates

    FEFO ensures items closest to their expiration date are shipped first, reducing waste and compliance risk in perishable or pharmaceutical operations.