WAREHOUSING AND

MATERIALS
MANAGEMENT
Choose the correct answer:
1. One function of a distribution warehouse is
consolidation, which means the facility is being
used to

A Group small inbound shipments into one large

outbound shipment*
B Collect products/packaging materials or disposal
C Hold safety stock inventory
D None of the above
2. A company which has limited experience
in warehousing who has a need to
establish temporary warehouse facilities in
multiple cities would most likely use:

A Private warehouses
B Public warehouses**
C Contract Warehouses
D Common Warehouses
 3. When a firm uses cross-docking inventory:

A Must be staged for shipping

B - Typically moves directly from receiving to

shipping**

C - Always is tagged for shipping

D - Is considered short movement freight

4. The four economic benefits of warehousing
are:

A Receiving, shipping, handling, and storage

B Shipping, receiving, assortment, and value added

C Consolidation, sorting, seasonal storage, and

reverse logistics**

D None of the above benefit combinations

 5. A firm that supports an automotive
assembly plant by providing just-in time
inventory is engaged in:

A Cross Docking

B Order Assembly

C Mixing

D Sequencing**
 6. When a firm spot stocks inventory they are
engaged in:

A Placing inventory in an exact location in the

warehouse
B - Placing inventory in consignment
C Marking inventory for ease of identification
D Placing inventory in a local warehouse in anticipation
of future need**
State whether the following statements are
true or False
1. When a company cross-docks products, the products are
generally in storage for several days (False)

2. A disadvantage of RFID tags versus UPC codes is that

RFID is more expensive (True)

3. The modern concept of a distribution center means that

products are never placed in storage (False)

4. The warehouse functionality of sorting means that

products are being assembled in custom assortments to
meet the needs of specific orders. (True)
State whether the following statements are
true or False

5. Cross docking is a form of sorting. (True)

6. Assembly is a primary service expected to be performed

by lead suppliers. (True)

7. Recycling is a major part of reverse logistics. (True)

8. Value Added Services (VAS) are seldom performed by

Integrated Service Providers (ISP) (False)
 State whether the following statements are true or
False
9. Order assembly is important to both manufacturers
and retailers. (True)

10. When a firm locates a temporary inventory in a specific

location it is called Spot Stocking (True)

11. A slot is the location where an over-the-road truck is

parked. (False)

12. Distribution warehouses that are dedicated to a specific

firm are called public warehouses (False)