CWLP Inventory Management & Control 4

Question 1

A warehouse experiences a stockout before the replenishment order arrives. This situation is best described as:

Accepted Answer

A backorder condition

Answer

A backorder occurs when customer demand exceeds available inventory, requiring the order to be fulfilled once stock is replenished.

Question 2

Which inventory performance metric measures the percentage of customer orders shipped completely on time from available stock?

Accepted Answer

Order fill rate

Answer

Order fill rate is the percentage of orders fulfilled completely from on-hand inventory without backorders or substitutions.

Question 3

What is the main disadvantage of holding excessive safety stock?

Accepted Answer

Higher carrying costs and tied-up capital

Answer

Excess safety stock increases carrying costs (storage, insurance, capital opportunity cost) without proportional service-level benefit.

Question 4

Which replenishment strategy sets a fixed order quantity triggered when inventory falls to a predetermined level?

Accepted Answer

Fixed-quantity (Q) system

Answer

The fixed-quantity (Q) system orders the same amount (often EOQ) whenever inventory drops to the reorder point.

Question 5

In cross-docking operations, inventory control is critical because products typically:

Accepted Answer

Move from inbound to outbound with little or no storage time

Answer

Cross-docking transfers goods directly from receiving docks to outbound shipping with minimal or zero warehouse storage time.

(CWLP) Certified Warehouse and Logistics Professional Practice Test