E-Commerce Development Order Fulfillment 3

Question 1

What is a 3PL (Third-Party Logistics) provider?

Accepted Answer

An outsourced company that handles warehousing, picking, packing, and shipping on behalf of a retailer

Answer

A 3PL is an external logistics company that takes over some or all of a retailer's fulfillment operations, including storage and shipping.

Question 2

What triggers an automated reorder in a continuous inventory replenishment system?

Accepted Answer

Stock levels dropping to or below a predefined reorder point

Answer

A reorder point (ROP) is the inventory level at which the system automatically generates a purchase order to replenish stock.

Question 3

Which approach to warehouse slotting places fast-moving items closest to the packing station?

Accepted Answer

ABC slotting

Answer

ABC slotting categorizes inventory by velocity (A=fast, B=medium, C=slow) and positions A items near packing areas to minimize picker travel time.

Question 4

What is 'cross-docking' in fulfillment operations?

Accepted Answer

Transferring inbound shipments directly to outbound shipping with minimal or no storage time

Answer

Cross-docking moves products from receiving docks directly to outbound docks, bypassing long-term storage and reducing handling time.

Question 5

What does an OMS (Order Management System) primarily do?

Accepted Answer

Centralizes order data, routes orders to appropriate fulfillment locations, and tracks order status

Answer

An OMS serves as the central hub for all order data, orchestrating fulfillment routing, inventory allocation, and status updates across channels.

E-Commerce Development Practice Test