EXAMINATION QUESTIONS FOR CHAPTER 9: WAREHOUSING MANAGEMENT

Multiple Choice Questions

1. Warehouses emphasize ____ and their primary purpose is to

maximize____.

a. b. c. d.

product storage; throughput product storage; usage of available storage space rapid movement of product; throughput rapid movement of product; usage of available storage space

2.

Distribution centers emphasize ____ and their primary

purpose is to maximize____.

a. b. c. d.

product storage; throughput product storage; usage of available storage space rapid movement of product; throughput rapid movement of product; usage of available storage space

3.

Throughput refers to:

a. b. c. d.

storage capacity of a warehousing facility volume through a pipeline inventory turnover in a one-month period amount of product entering and leaving a facility in a given

time period

4.

The primary factor that distinguishes a distribution center from

a warehouse is:

a.

distribution centers tend to be multi-story buildings

b. c.

distribution centers stress storage distribution centers stress rapid movement of products

through the facility d. distribution centers tend to be smaller than warehouses

5. Warehousing and ____ are substitutes for each other.

a. b. c. d. e.

transportation materials handling packaging procurement none of the above

6.

____ and ____ refer to adjustments associated with the

quantity of product.

a. b. c. d.

Accumulating; allocating Allocating; assorting Sorting; accumulating Sorting; assorting

7.

____ involves bringing together similar stocks from similar

sources.

a. b. c. d.

Bulk-breaking Assorting Accumulating Sorting

8.

____ refers to building up a variety of different products for

resale to particular customers.

a. b. c. d.

Accumulating Allocating Sorting Assorting

9.

____ 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. b. c. d.

Just-in-time Cross-docking Consolidation Turbologistics

10. ____ warehouses are similar to common carriers.

a. b. c. d.

Public Private Contract Cross-dock

11. Which of the following is not a characteristic of public warehousing?

a. b. c. d. e.

requires no capital investment from user user receives a regular bill for space used good for companies dealing with large volumes of inventory lack of control by user all are characteristics

12. Bonded storage in a public warehouse refers to:

a.

products being stored in a public warehouse and no duties or

taxes paid until the products leave the facility b. c. products that are insured by a general warranty bond products that are bonded as required in the order

specifications d. e. products that are subjected to regular inspections none of the above

13. A field warehouse is:

a.

a facility that is often used as a field sales office along with

the traditional storage function b. a facility established primarily to hold material serving as

collateral for a loan c. a facility that is primarily used as a break-bulk point

d.

a facility located in a number of remote areas from the main

production facility

14. ____ warehousing is owned or occupied on a long-term lease by the firm using them.

a. b. c. d.

Public Private Contract Multi-client

15. All are characteristics of private warehousing, except:

a. them b. c.

owned or occupied on a long-term lease by the firm using

feasible when demand patterns are irregular users have a great deal of control

d. e.

may reduce an organizations flexibility all are characteristics

16. All are true concerning contract warehousing, except:

a. b.

can also be referred to as third-party warehousing 35 year contracts appear to offer benefits to both user and

provider c. d. e. more cost effective than private warehousing more flexible than public warehousing all are characteristics

17. Multi-client warehousing mixes attributes of ____ and ____ warehousing.

a. b.

public; contract public; common

c. d.

common; private private; contract

18. One of the best pieces of advice with respect to the design of warehousing facilities is to:

a. b. c. d.

avoid consultants build up rather than out use common sense maximize space utilization

19. Tradeoffs must be among space, labor, and ____ with respect to warehousing design.

a. b. c.

cost construction materials speed

d.

mechanization

20. The primary advantage of variable slot locations in a warehouse is:

a. b. c. d.

increased space utilization better materials handling ease of record keeping more logical and simple product layout

21. The primary advantage of fixed slot locations in a warehouse is:

a. b. c. d.

increased space utilization better materials handling knowledge of where specific products are located improved employee morale

22. As one builds higher, building costs____, while warehousing equipment costs tend to ____.

a. b. c. d.

increase; decrease increase; increase decrease; decrease decrease; increase

23. 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. c. it requires carriers to pick up and deliver at specific times goods move in a straight configuration

d.

product may sometimes be reloaded in the vehicle that

delivered it e. all of the statements are true

24. Which of the following is not a tradeoff in warehousing design?

a. b. c. d. e.

two-dock versus single-dock layout build up versus build out order picking versus order taking functions space devoted to aisles versus space devoted to storage all are tradeoffs

25. Which of the following is not a benefit associated with paperless warehousing?

a. b. c. d. e.

low cost reduced clerical work decreased picking and shipping errors improved order picking efficiency all are benefits

26. It is possible for paperless warehousing facilities to have payback periods of approximately ____ months.

a. b. c. d.

6 12 18 24

27. Recent estimates suggest that only approximately ____ of a facilitys cubic capacity is actually occupied by product.

a. b. c. d.

55% 40% 25% 10%

28. ____ tend to be the standard workhorse in many warehousing facilities.

a. b. c. d.

Forklifts Pallet jacks Dock carts Conveyor systems

29. Which of the following is false?

a.

warehouse work can be strenuous and physically demanding

b.

the use of racks may improve space utilization by allowing for

narrower aisles c. goods can be moved by a combination of manual,

mechanized, and automated methods d. e. warehouse workers tend to be easily motivated all are true

30. Software packages that control the movement and storage of materials within an organization refer to ____ systems.

a. b. c. d.

enterprise resource planning materials requirement planning warehouse management inventory management

31. The most frequent injuries among warehousing personnel involve:

a. b. c. d. e.

feet the torso hands back and shoulder none of the above

32. ____ regulations deal with many aspects of warehousing safety.

a. b. c. d.

OSHA FDA FTC WSA

33. What is dunnage?

a. b. c.

a type of packaging material that is placed inside of boxes a slang term for a particular type of ocean liner additional transportation fees that are charged to small

shippers d. material that is used to block and brace products inside

carrier equipment

34. Which of the following is not one of the four questions associated with effective management of hazardous materials storage?

a. b. c. d.

what material is being stored why is it being stored what is the materials source where is it being stored

e.

all are questions

35. It is estimated that the theft and pilferage of products stored in warehousing facilities causes losses in the range of ____ to ____ times the products value.

a. b. c. d.

five; six four; five three; four two; three

True-False Questions
1. Warehouses emphasize the storage of products and their primary purpose is to maximize throughput.

2.

Distribution centers emphasize the rapid movement of

products through a facility and attempt to maximize throughput.

3.

Throughput is the amount of product entering and leaving a

warehousing facility in a given period of time.

4.

Materials handling has been referred to as transportation at

zero miles per hour.

5.

Warehousing is needed because patterns of production and

consumption may not coincide.

6.

Assorting and sorting refer to adjustments associated with the

quantity of product.

7.

Accumulating involves bringing together similar stocks from

different sources.

8.

Assorting involves breaking larger quantities into smaller

quantities.

9.

A facility designed for cross docking should devote more

space to product storage and less space to dock operations.

10. Because companies have different strategies, goals, and objectives, there is no correct mix of public, private, and contract warehousing.

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

12. Two notable private warehouse services involve bonded storage and field warehousing.

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

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

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

16. The growth in contract warehousing appears to have come at the expense of public warehousing.

17. Contract warehousing tends to be more cost effective than public warehousing.

18. One to two year contracts appear to allow sufficient time for contract warehousers to learn their clients business while at the same time allowing clients some flexibility.

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

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

21. Tradeoffs must be made among space, labor, and mechanization with respect to warehousing design.

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

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

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

25. Narrower aisles can increase the space utilization of a facility.

26. Narrow aisle forklifts can operate in an aisle width of four feet, compared to the nine foot width that is needed by the standard forklift.

27. It is possible for paperless warehousing facilities to have payback periods of approximately 18 months.

28. Recent estimates suggest that only approximately 25% of a warehousing facilitys cubic capacity is actually occupied by product.

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

30. Forklifts tend to be the standard workhorse in many warehousing facilities.

31. The majority (over 50%) of warehouse management system installations are completed within budget.

32. Warehouse management systems can result in reduced data entry errors as well as reduced travel distances for order picking.

33. Back and shoulder injuries are the most frequent injuries among warehouse personnel.

34. The Warehousing Safety Administration has primary responsibility for warehousing safety practices.

35. Dunnage refers to charges for accessorial transportation service.

36. Fires are a constant threat in warehousing.

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

38. It is estimated that the theft and pilferage of products stored in warehousing facilities causes losses in the range of two to three times the products value.

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

40. Unsanitary warehousing facilities could cause existing customers to take their business elsewhere.