Deck 10: Warehousing Management

Question 1

____ refers to a process where a product is received in a facility, occasionally married with product going to the same destination, and then shipped at the earliest time, without going into longer-term storage.
a. just-in-time
b. cross-docking
c. accumulation
d. agglomeration

Answer 1

cross-docking

Question 2

A key advantage of fixed slot locations in a warehouse is ____.
a. improved employee morale
b. knowledge of where specific products are located
c. better materials handling
d. increased space utilization

Answer 2

knowledge of where specific products are located

Question 3

Trade-offs must be made among space, labor, and ____ with respect to warehousing design.
a. cost
b. construction materials
c. mechanization
d. speed

Answer 3

mechanization

Question 4

____ warehousing is owned or occupied on a long-term lease by the firm using them.
a. private
b. public
c. contract
d. multiclient

Question 5

Distribution centers emphasize ____ and their primary purpose is to maximize ____.
a. rapid movement of product; throughput
b. product storage; throughput
c. product storage; usage of available storage space
d. rapid movement of product; usage of available storage space

Question 6

With respect to contract warehousing, ____ to ____ year contracts appear to allow sufficient time for the warehousing provider to learn the client's business while allowing the client some flexibility in case the agreement fails to produce acceptable results.
a. 1; 2
b. 2; 3
c. 3; 5
d. 5; 7

Question 7

Which of the following is not a characteristic of public warehousing?
a. requires no capital investment from user
b. users have a fairly exact determination of their warehousing costs
c. good for companies dealing with large volumes of inventory
d. lack of control by user
e. all of the above are characteristics

Question 8

Multiclient warehousing mixes attributes of ____ and ____ warehousing.
a. private; contract
b. common; private
c. public; common
d. public; contract

Question 9

Warehouses emphasize ____ and their primary purpose is to maximize ____.
a. rapid movement of product; usage of available storage space
b. rapid movement of product; throughput
c. product storage; usage of available storage space
d. product storage; throughput

Question 10

Throughput refers to ____.
a. storage capacity of a warehousing facility
b. volume through a pipeline
c. inventory turnover in a one-month period
d. amount of product entering and leaving a facility in a given time period

Question 11

A key advantage of variable slot locations in a warehouse is ____.
a. increased space utilization
b. better materials handling
c. ease of record keeping
d. more logical and simple product layout

Question 12

____ refers to separating products into grades and qualities desired by different target markets.
a. assorting
b. sorting out
c. allocating
d. accumulating

Question 13

One of the best pieces of advice with respect to the design of warehousing facilities is to ____.
a. automate whenever possible
b. build up rather than out
c. avoid consultants
d. use common sense

Question 14

Warehousing labor safety practices in the United States are monitored by which federal government agency?
a. Warehousing Safety Administration
b. Department of Commerce
c. Food and Drug Administration
d. Consumer Product Safety Commission
e. none of the above

Question 15

____ refers to building up a variety of different products for resale to particular customers.
a. accumulating
b. allocating
c. sorting out
d. assorting

Question 16

____ involves bringing together similar stocks from different sources.
a. bulk-breaking
b. assorting
c. accumulating
d. sorting out

Question 17

All are characteristics of private warehousing, except ____.
a. generates high fixed costs for the user
b. feasible when demand patterns are irregular
c. users have a great deal of control
d. may reduce an organization's flexibility
e. all of the above are characteristics

Question 18

Warehousing and ____ are substitutes for each other.
a. transportation
b. materials handling
c. packaging
d. inventory management
e. none of the above

Question 19

____ and ____ refer to adjustments associated with the quantity of product.
a. allocating; assorting
b. accumulating; allocating
c. sorting out; accumulating
d. sorting out; assorting

Question 20

What is considered to be the biggest drawback to public warehousing?
a. high fixed cost to user
b. lack of safety regulation
c. lack of locational flexibility
d. lack of control by the user

Question 21

Which of the following is not one of the common causes of warehousing fires?
a. electrical failure or malfunction
b. lightning strikes
c. heat source too close to combustibles
d. cutting or welding too close to combustibles
e. all of the above are common causes

Question 22

Which of the following statements about a one-dock layout is false?
a. each and every dock can be used for both shipping and receiving
b. it requires carriers to pick up and deliver at specific times
c. goods move in a straight configuration
e. all of the above statements are true
e. product may sometimes be reloaded in the vehicle that delivered it

Question 23

Warehousing is needed because patterns of production and consumption may not coincide.

Question 24

According to the Occupational Safety and Health Administration, approximately ____ employees are killed each year while operating forklifts in warehousing facilities.
a. 100
b. 250
c. 500
d. 1,000
e. none of the above

Question 25

Which of the following is not one of the four questions associated with effective management of hazardous materials storage?
a. what material is being stored
b. why is it being stored
c. what is the material's source
d. where is it being stored
e. each of the above is one of the four questions

Question 26

Which of the following is not a trade-off in warehousing design?
a. two-dock versus single-dock layout
b. build up versus build out
c. order picking versus order taking functions
d. degree of warehouse automation
e. all of the above are trade-offs in warehousing design

Question 27

Which of the following statements is false?
a. clean and sanitary warehousing facilities can have a positive impact on morale
b. one suggestion for warehouse sanitation is to clean the facility at least once a day
c. warehousing cleanliness and sanitation can be facilitated by putting product at the back of a facility where it is out of the way
d. clean and sanitary warehousing facilities can reduce employee turnover
e. all of the above are true

Question 28

As one builds higher, building costs ____, while warehousing equipment costs tend to ____.
a. increase; decrease
b. increase; increase
c. decrease; decrease
d. decrease; increase

Question 29

Assorting and sorting refer to adjustments associated with the quantity of product.

Question 30

Which of the following is not an example of warehouse automation?
a. radio frequency identification
b. narrow aisle forklifts
c. automated guided vehicles
d. automated storage and retrieval systems
e. all of the above are examples of warehouse automation

Question 31

In general, warehousing security can be enhanced by focusing on people, ____, and ____.
a. building; equipment
b. buildings; cost
c. cost; processes
d. facilities; processes

Question 32

Materials handling has been referred to as transportation at zero miles per hour.

Question 33

One estimate suggests that only approximately ____ percent of a facility's cubic capacity is actually occupied by product.
a. 10
b. 25
c. 40
d. 50

Question 34

A safety data sheet (SDS) is required for ____.
a. all finished goods stored in a warehouse
b. each hazardous product to be stored in a facility
c. all raw materials brought into a firm
d. any product imported into the United States

Question 35

Many well-run companies view warehousing as a strategic consideration and as a potential source of competitive advantage.

Question 36

What is dunnage?
a. a slang term for a particular type of ocean liner
b. a type of packaging material that is placed inside of boxes
c. material that is used to block and brace products inside carrier equipment
d. additional transportation fees that are charged to small shippers

Question 37

What is the most frequent source of injuries among warehousing personnel?
a. heart attacks
b. assault by other warehousing personnel
c. leg wounds from forklifts
d. back and shoulder injuries

Question 38

Which of the following is not a potential measure of warehousing productivity?
a. average warehouse capacity used
b. order fill rate
c. pallets shipped per person
d. cases shipped per person
e. all of the above are potential measures of warehousing productivity

Question 39

Accumulating involves bringing together similar stocks from different sources.

Question 40

Narrow aisles can store ____ to ____ percent more product than conventional width aisles.
a. 30; 40
b. 20; 25
c. 15; 20
d. 10; 15

Question 41

Trade-offs must be made among space, labor, and mechanization with respect to warehousing design.

Question 42

In essence, multi-client warehousing mixes attributes of private and contract warehousing.

Question 43

Perhaps the biggest drawback to public warehousing is the inability to provide specialized services.

Question 44

Throughput is the amount of product entering and leaving a warehousing facility in a given period of time.

Question 45

Three-to-five year contracts appear to allow sufficient time for contract warehouses to learn their client's business while at the same time allowing clients some flexibility.

Question 46

Radio frequency identification is an example of warehouse automation.

Question 47

Warehouses emphasize the rapid movement of products through a facility and attempt to maximize throughput.

Question 48

A storage facility with low rates of product turnover should be laid out in a manner that maximizes utilization of the cubic capacity of the storage facility.

Question 49

In the United States, the Warehousing Safety Administration has primary responsibility for warehousing safety practices.

Question 50

Private warehousing offers potential users a great deal of control over their storage needs.

Question 51

Common sense should not be ignored with respect to the design of warehousing facilities.

Question 52

With public warehousing the user rents space as needed, thus avoiding the cost of unneeded space.

Question 53

A variable slot location warehousing system may result in low space utilization.

Question 54

A general rule of thumb is that it is cheaper to build up than build out.

Question 55

Private warehousing tends to be feasible when demand patterns are relatively stable.

Question 56

Assorting involves breaking larger quantities into smaller quantities.

Question 57

Public warehousing has embraced value-adding activities such as customization and reverse logistics to a greater degree than has contract warehousing.

Question 58

A one-dock warehouse layout, in contrast to a two-dock layout, increases the space needed for storage docks.

Question 59

One drawback of cross-docking is that it increases the amount of necessary warehousing space.

Question 60

Narrower aisles can increase the space utilization of a facility.

Question 61

Clean and sanitary warehousing facilities can have a positive impact on employee safety, morale, and productivity.

Question 62

In the United States, approximately 95,000 employees are injured every year while operating forklifts in warehousing facilities.

Question 63

One low-cost suggestion for improving warehousing productivity is to play music, if conditions permit.

Question 64

Recent estimates suggest that only approximately 25% of a warehousing facility's cubic capacity is actually occupied by product.

Question 65

Motivation of warehousing employees can be difficult because of the somewhat repetitive nature of the operation.

Question 66

Wayne is also considering rental of a forklift to use in truck unloading. A team of only two would be needed, but the hourly cost would be $38 per hour ($28 for the workers and $10 for the forklift). They could unload a truck in five minutes. Should Wayne rent the forklift?

Question 67

Buildings that store hazardous materials often have walls and doors that can withstand several hours of intense fire.

Question 68

Forklift operators in the United States must be recertified every five years.

Question 69

In general, warehousing security can be enhanced by focusing on people, facilities, and information.

Question 70

Approximately 10% of all warehousing fires in recent years were sent intentionally.

Question 71

Increases in warehousing productivity require significant investment in technology or mechanized or automated equipment.

Question 72

Dunnage refers to charges for accessorial transportation service.

Question 73

Back and shoulder injuries are the most frequent injuries among warehousing personnel.

Question 74

Government regulations require organizations to create a safety data sheet (SDS) for each imported item that is stored in a warehousing facility.

Question 75

Potential threats to warehousing security include theft, pilferage, heat and humidity, and fire, among others.

Question 76

Fires are a constant threat in warehousing.