Supply Chain Management Warehousing 2 — Questions and Answers
Question 1: Which warehouse layout strategy places the fastest-moving SKUs closest to shipping docks?
- Random storage
- Dedicated storage
- Velocity-based slotting (Correct answer)
- Chaotic storage
Correct answer: Velocity-based slotting
Velocity-based slotting minimizes travel time by positioning high-turnover items near outbound docks.
Question 2: What is the primary purpose of a deconsolidation point in a warehouse network?
- To combine multiple shipments into one
- To break bulk shipments into smaller individual orders (Correct answer)
- To store hazardous materials separately
- To sort returns from customers
Correct answer: To break bulk shipments into smaller individual orders
A deconsolidation point receives large inbound shipments and breaks them down into smaller quantities for local distribution.
Question 3: In a warehouse management system (WMS), what does 'wave picking' refer to?
- Picking orders sequentially one at a time
- Releasing and picking groups of orders simultaneously during scheduled time windows (Correct answer)
- A method of counting inventory in waves across zones
- Picking items in a back-and-forth aisle pattern
Correct answer: Releasing and picking groups of orders simultaneously during scheduled time windows
Wave picking releases batches of orders at scheduled intervals, allowing coordinated picking and staging for outbound shipments.
Question 4: Which metric measures the percentage of customer orders shipped complete and on time?
- Inventory turnover ratio
- Perfect order rate (Correct answer)
- Dock-to-stock cycle time
- Fill rate
Correct answer: Perfect order rate
Perfect order rate measures orders delivered complete, on time, damage-free, and with accurate documentation.
Question 5: What is a bonded warehouse primarily used for?
- Storing perishable goods under refrigeration
- Holding imported goods before customs duties are paid (Correct answer)
- Storing hazardous chemicals with special permits
- Consolidating shipments from multiple suppliers
Correct answer: Holding imported goods before customs duties are paid
A bonded warehouse holds imported goods under customs control, allowing duties to be deferred until goods are released.
Question 6: In warehouse operations, what is 'slotting optimization'?
- Scheduling delivery time slots for inbound trucks
- Strategically assigning storage locations to products based on velocity, size, and pick frequency (Correct answer)
- Allocating labor shifts across warehouse zones
- Reserving parking slots for outbound carriers
Correct answer: Strategically assigning storage locations to products based on velocity, size, and pick frequency
Slotting optimization assigns each SKU to the most efficient storage location based on movement rates and ergonomic factors.
Question 7: Which inventory control method requires counting a small subset of inventory items each day on a rotating basis?
- Annual physical inventory
- Cycle counting (Correct answer)
- ABC analysis
- FIFO auditing
Correct answer: Cycle counting
Cycle counting divides inventory into groups counted on a rotating schedule, providing ongoing accuracy without a full shutdown.
Supply Chain Management Warehousing 2
Which warehouse layout strategy places the fastest-moving SKUs closest to shipping docks?