Which of the following statements about cross-docking is not correct?
A) Cross-docking is packing products on incoming shipments so they can be easily sorted for outgoing shipments based on their final destination.
B) Cross-docking reduces inventory and storage space requirements, but handling costs and lead times tend to increase.
C) Items are moved from incoming vehicles to outgoing vehicles without being stored in warehouse inventory.
D) Inbound and outbound shipments must be tightly coordinated for cross-docking to work.

Question

Quizplus · Accepted Answer

Cross-docking reduces inventory and storage space requirements, and can even reduce handling costs and lead times if done efficiently. Therefore, the statement that handling costs and lead times tend to increase with cross-docking is not correct.

Which of the Following Statements About Cross-Docking Is Not Correct