MHC Logistics & Workflow Efficiency 2 — Questions and Answers
Question 1: Which inventory management technique minimizes carrying costs by ordering stock only when needed?
- Economic Order Quantity (EOQ)
- Just-in-Time (JIT) (Correct answer)
- ABC Analysis
- Safety Stock Method
Correct answer: Just-in-Time (JIT)
Just-in-Time (JIT) reduces carrying costs by scheduling deliveries to arrive exactly when materials are needed for production.
Question 2: In a warehouse using zone picking, what is the primary benefit over single-order picking?
- Reduces the number of SKUs
- Workers stay in assigned areas reducing travel time (Correct answer)
- Eliminates the need for conveyor systems
- Allows batch counting of all inventory
Correct answer: Workers stay in assigned areas reducing travel time
Zone picking assigns workers to specific areas, significantly reducing travel distance and increasing throughput.
Question 3: What does 'dock-to-stock' time measure in a receiving operation?
- Time to unload a truck from arrival to dock
- Time from trailer arrival until goods are put away in storage locations (Correct answer)
- Time to process a purchase order in the ERP system
- Time for quality inspection only
Correct answer: Time from trailer arrival until goods are put away in storage locations
Dock-to-stock time measures the total elapsed time from when a trailer arrives at the dock until the received goods are stored in their designated locations.
Question 4: Which layout strategy positions fast-moving items closest to the shipping dock to reduce travel distance?
- Random slotting
- Velocity-based slotting (Correct answer)
- Alphabetical slotting
- LIFO slotting
Correct answer: Velocity-based slotting
Velocity-based slotting places high-velocity (fast-moving) SKUs nearest to the outbound dock to minimize picker travel time.
Question 5: A warehouse operates two 8-hour shifts and processes 960 orders per day. What is the order throughput rate per hour?
- 48 orders/hour
- 60 orders/hour (Correct answer)
- 80 orders/hour
- 120 orders/hour
Correct answer: 60 orders/hour
960 orders ÷ 16 total hours (2 shifts × 8 hours) = 60 orders per hour.
Question 6: Which type of warehouse racking system maximizes storage density by allowing only one access aisle for multiple deep pallet positions?
- Selective pallet racking
- Drive-in/drive-through racking (Correct answer)
- Cantilever racking
- Mezzanine racking
Correct answer: Drive-in/drive-through racking
Drive-in/drive-through racking allows forklifts to enter the rack structure, enabling multiple pallets deep storage with minimal aisle space.
Question 7: What is the primary purpose of a cross-docking operation in a distribution center?
- Long-term bulk storage of seasonal inventory
- Transfer of goods from inbound to outbound transport with minimal storage time (Correct answer)
- Quality inspection of all incoming products
- Sorting returned merchandise for restocking
Correct answer: Transfer of goods from inbound to outbound transport with minimal storage time
Cross-docking transfers products directly from receiving to shipping with little or no storage, reducing handling costs and order cycle time.
MHC Logistics & Workflow Efficiency 2
Which inventory management technique minimizes carrying costs by ordering stock only when needed?