MHC Storage & Inventory Management 5

Question 1

What is the primary purpose of a 'warehouse management system' (WMS)?

Accepted Answer

To control and optimize warehouse operations including inventory tracking and order fulfillment

Answer

A WMS manages and optimizes all warehouse activities including receiving, putaway, picking, packing, shipping, and real-time inventory visibility.

Question 2

What is 'safety stock' designed to protect against?

Accepted Answer

Demand variability and supplier lead time uncertainty

Answer

Safety stock is buffer inventory held to prevent stockouts caused by unexpected spikes in demand or delays in replenishment from suppliers.

Question 3

Which of the following is an example of a 'controlled atmosphere' storage application?

Accepted Answer

Fresh produce held at regulated oxygen and CO2 levels to extend shelf life

Answer

Controlled atmosphere storage regulates gas composition—reducing oxygen and increasing CO2—to slow the respiration of fresh fruits and vegetables, extending their shelf life.

Question 4

What inventory valuation method assigns the cost of the oldest inventory to goods sold first?

Accepted Answer

FIFO

Answer

Under FIFO (First In, First Out), the cost of the earliest purchased inventory is assigned to the cost of goods sold, matching the physical flow of most perishable goods.

Question 5

A warehouse stores a mix of heavy and light items on the same shelving unit. Which loading practice minimizes rack stress and tipping risk?

Accepted Answer

Distribute heavy items on lower levels and lighter items on upper levels

Answer

Storing heavy items low lowers the center of gravity of the rack, reducing tip-over risk and distributing structural load more safely.

(MHC) Material Handling Certification Practice Test

(MHC) Material Handling Certification Practice Test

MHC Storage & Inventory Management 5