MHC Storage & Inventory Management 3

Question 1

What does 'cross-docking' eliminate in the warehousing process?

Accepted Answer

Long-term storage of goods in the warehouse

Answer

Cross-docking transfers goods directly from inbound to outbound transportation with little or no storage time, reducing warehousing costs.

Question 2

Under OSHA standards, what is the maximum allowable height for stacking pallets in a warehouse without additional securing measures?

Accepted Answer

It is determined by the product weight and rack rating, not a fixed height

Answer

OSHA does not set a universal fixed height limit; stack height must be determined by the structural limits of the rack, pallet, and product specifications.

Question 3

What inventory metric does the formula (COGS ÷ Average Inventory) calculate?

Accepted Answer

Inventory turnover ratio

Answer

Dividing Cost of Goods Sold by Average Inventory gives the inventory turnover ratio, showing how many times stock is sold and replaced in a period.

Question 4

Which hazardous material storage rule requires incompatible chemicals to be physically separated?

Accepted Answer

Segregation requirement

Answer

Segregation requirements mandate that incompatible hazardous materials be stored separately to prevent dangerous reactions in case of a spill or leak.

Question 5

A warehouse manager notices cycle counts consistently differ from the WMS record. What is the FIRST corrective step?

Accepted Answer

Investigate root causes such as process errors or unauthorized access

Answer

Before making inventory adjustments, the root cause of discrepancies—such as receiving errors, pick errors, or theft—must be identified and corrected.

(MHC) Material Handling Certification Practice Test

(MHC) Material Handling Certification Practice Test

MHC Storage & Inventory Management 3