Chapter 12: Physical Inventory and Warehouse Management

Question 1

\_\_\_\_\_\_\_\_\_\_\_ productivity depends on the type of material equipment handling used, the location and accessibility of stock, warehouse layout, stock location system, and the order-picking system used.
A) Labor
B) Material
C) Equipment
D) Picking

Answer 1

Labor

Question 2

In receiving goods, the warehouse must:
A) Inspect goods if required
B)Check for damage
C) Check the goods against an order and the bill of lading
D)All of the above

Answer 2

All of the above

Question 3

A record must be maintained for each item in stock showing:
A) The quantity on hand and received
B) The quantity on hand, received, and issued
C) The quantity on hand and issued
D) The quantity received and issued

Answer 3

The quantity on hand, received, and issued

Question 4

The effective use of a warehouse is influenced by:
A) Cube utilization and accessibility
B) Stock location
C) Order picking and assembly
D) All of the above

Answer 4

All of the above

Question 5

\_\_\_\_\_\_\_\_\_\_\_\_\_\_ is the use of space horizontally and vertically.
A) Accessibility
B) Pallet positioning
C) Cube utilization
D) Stock location

Answer 5

Cube utilization

Question 6

If fast-moving items are placed \_\_\_\_\_\_\_ the receiving and shipping area, the work of moving them in and out of storage is \_\_\_\_\_\_\_\_\_\_\_\_\_.
A) close to, increased
B) close to, reduced
C) away from, reduced
D) The first and third choices above

Answer 6

close to, reduced

Question 7

In a fixed-location system:
A) An SKU is assigned a permanent location
B) No other items are stored there
C) It is possible to store and retrieve items with a minimum of record keeping
D) All of the above

Answer 7

All of the above

Question 8

An advantage to central storage is:
A) Increased safety stock
B) General-purpose storage can be used.
C) Users can carry their own safety stock.
D) Ease of control

Answer 8

Ease of control

Question 9

Inventory errors are often caused by:
A) Secure stockrooms
B) Trained personnel
C) Authorized withdrawal of material
D) Lack of audit capability

Answer 9

Lack of audit capability

Question 10

Cycle counting:
A) Can reduce lost production
B) Can be done by all personnel, including clerical staff
C) Is more concerned with correcting errors in inventory counts
D) Is slow to detect problems

Answer 10

Can reduce lost production