CWLP Inventory Management & Control 5

Question 1

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

Accepted Answer

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

Answer

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

Question 2

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

Accepted Answer

Vendor-Managed Inventory (VMI)

Answer

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

Question 3

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

Accepted Answer

96.0%

Answer

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

Question 4

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

Accepted Answer

Random (chaotic) storage

Answer

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

Question 5

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

Accepted Answer

Track and recall specific production batches if a quality issue arises

Answer

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

(CWLP) Certified Warehouse and Logistics Professional Practice Test