Warehousing Management Murphy Chapter 10 Full Test Bank

TEST BANK

CHAPTER 10: WAREHOUSING MANAGEMENT

Multiple Choice Questions (correct answers are bolded)

1. Warehousing and ___________ are substitutes for each other.

a. transportation

b. materials handling

c. packaging

d. inventory management

[LO 10.1: To discuss the role of warehousing in a logistics system; Moderate; Application; AACSB Category 3: Analytical thinking]

2. Which of the following has been referred to as “transportation at zero miles per hour”?

a. materials handling

b. inventory management

c. procurement

d. warehousing

[LO 10.1: To discuss the role of warehousing in a logistics system; Moderate; Concept; AACSB Category 3: Analytical thinking]

3. ___________ and ___________ refer to adjustments associated with the quantity of product.

a. Allocating; assorting

b. Accumulating; allocating

c. Sorting out; accumulating

d. Sorting out; assorting

[LO 10.1: To discuss the role of warehousing in a logistics system; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

4. ___________ involves bringing together similar stocks from different sources.

a. Bulk-breaking

b. Assorting

c. Accumulating

d. Sorting out

[LO 10.1: To discuss the role of warehousing in a logistics system; Moderate; Concept; AACSB Category 3: Analytical thinking]

5. ___________ refers to building up a variety of different products for resale to particular customers.

a. Accumulating

b. Allocating

c. Sorting out

d. Assorting

[LO 10.1: To discuss the role of warehousing in a logistics system; Moderate; Concept; AACSB Category 3: Analytical thinking]

6. ___________ refers to separating products into grades and qualities desired by different target markets.

a. Assorting

b. Sorting out

c. Allocating

d. Accumulating

[LO 10.1: To discuss the role of warehousing in a logistics system; Moderate; Concept; AACSB Category 3: Analytical thinking]

7. 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

[LO 10.1: To discuss the role of warehousing in a logistics system; Difficult; Application; AACSB Category 3: Analytical thinking]

8. 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

[LO 10.1: To discuss the role of warehousing in a logistics system; Difficult; Application; AACSB Category 3: Analytical thinking]

9. 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

[LO 10.1: To discuss the role of warehousing in a logistics system; Moderate; Concept; AACSB Category 3: Analytical thinking]

10. ___________ are focused on e-commerce orders.

a. Warehouses

b. Distribution centers

c. Fulfillment centers

d. Cross-dock facilities

[LO 10.1: To discuss the role of warehousing in a logistics system; Moderate; Concept; AACSB Category 3: Analytical thinking]

11. ___________ refers to a process of receiving product and shipping it out the same day or overnight without putting it into storage.

a. Just-in-time

b. Cross-docking

c. Accumulation

d. Agglomeration

[LO 10.1: To discuss the role of warehousing in a logistics system; Moderate; Concept; AACSB Category 3: Analytical thinking]

12. Which of the following is not a possible design shape for a cross-dock facility?

a. I

b. H

c. U

d. X

[LO 10.1: To discuss the role of warehousing in a logistics system; Difficult; Application; AACSB Category 3: Analytical thinking]

13. Warehousing labor safety practices in the United States are monitored by which federal government agency?

a. Warehousing Safety Administration

b. Department of Commerce

c. Occupational Safety and Health Administration (OSHA)

d. Consumer Product Safety Commission

[LO 10.2: To learn about public, private, contract, and multiclient warehousing; Moderate; Application; AACSB Category 3: Analytical thinking]

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

a. It requires no capital investment from users.

b. Users have a fairly exact determination of their warehousing costs.

c. It is good for users dealing with large volumes of inventory.

d. There is a lack of control by users.

[LO 10.2: To learn about public, private, contract, and multiclient warehousing; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

15. What are the two major sources of labor in logistics?

a. warehousing and materials handling

b. transportation and warehousing

c. order management and materials handling

d. packaging and transportation

[LO 10.2: To learn about public, private, contract, and multiclient warehousing; Moderate; Synthesis; AACSB Category 3: Analytical thinking]

16. What is considered to be the biggest drawback to public warehousing?

a. high fixed cost to the user

b. lack of safety regulation

c. lack of locational flexibility

d. lack of control by the user

[LO 10.2: To learn about public, private, contract, and multiclient warehousing; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

17. ___________ warehousing is owned by the firm storing goods in the facility.

a. Private

b. Public

c. Contract

d. Multiclient

[LO 10.2: To learn about public, private, contract, and multiclient warehousing; Easy; Concept; AACSB Category 3: Analytical thinking]

18. Which of the following statements about private warehousing is false?

a. It generates high fixed costs for the user.

b. It is feasible when demand patterns are irregular.

c. It gives users a great deal of control.

d. It may reduce an organization’s flexibility.

[LO 10.2: To learn about public, private, contract, and multiclient warehousing; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

19. With respect to contract warehousing, ___________ to ___________ 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. one-year; two-year

b. two-year; three-year

c. three-year; five-year

d. five-year; seven-year

[LO 10.2: To learn about public, private, contract, and multiclient warehousing; Moderate; Application; AACSB Category 3: Analytical thinking]

20. Multiclient warehousing mixes attributes of ___________ and ___________ warehousing.

a. private; contract

b. common; private

c. public; common

d. public; contract

[LO 10.2: To learn about public, private, contract, and multiclient warehousing; Moderate; Synthesis; AACSB Category 3: Analytical thinking]

21. Which of the following statements is false?

a. The primary design consideration in warehousing should be the facility’s function.

b. The relative emphasis placed on storage and distribution affects the space layout of a warehousing facility.

c. The quantity and character of goods to be handled must be known prior to designing a warehousing facility.

d. Online orders should be filled from warehousing facilities designed to supply retail store locations.

[LO 10.3: To analyze select considerations when designing warehouse facilities; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

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

a. cost

b. construction materials

c. mechanization

d. speed

[LO 10.3: To analyze select considerations when designing warehouse facilities; Moderate; Synthesis; AACSB Category 3: Analytical thinking]

23. ___________ is a popular strategy that slots the most frequently picked items in the most accessible location.

a. Fixed slot location

b. Variable slot location

c. Velocity slotting

d. ABC slotting

[LO 10.3: To analyze select considerations when designing warehouse facilities; Moderate; Concept; AACSB Category 3: Analytical thinking]

24. 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

[LO 10.3: To analyze select considerations when designing warehouse facilities; Moderate; Synthesis; AACSB Category 3: Analytical thinking]

25. 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

[LO 10.3: To analyze select considerations when designing warehouse facilities; Moderate; Synthesis; AACSB Category 3: Analytical thinking]

26. As one builds higher, building costs ___________, while warehousing equipment costs tend to ___________.

a. increase; decrease

b. increase; increase

c. decrease; decrease

d. decrease; increase

[LO 10.3: To analyze select considerations when designing warehouse facilities; Moderate; Synthesis; AACSB Category 3: Analytical thinking]

27. 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.

d. The product may sometimes be reloaded in the vehicle that delivered it.

[LO 10.3: To analyze select considerations when designing warehouse facilities; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

28. Narrow aisles can store ___________ to ___________ percent more product than conventional aisles.

a. 30; 40

b. 20; 25

c. 15; 20

d. 10; 15

[LO 10.3: To analyze select considerations when designing warehouse facilities; Moderate; Application; AACSB Category 3: Analytical thinking]

29. Which of the following is not an example of warehouse automation?

a. radio frequency identification

b. narrow aisle forklifts

c. automated guided vehicles

d. pallet jacks

[LO 10.3: To analyze select considerations when designing warehouse facilities; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

30. 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

[LO 10.3: To analyze select considerations when designing warehouse facilities; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

31. One estimate suggests that only approximately ___________ percent of a facility’s cubic capacity is actually occupied by product.

a. 20

b. 25

c. 35

d. 50

[LO 10.3: To analyze select considerations when designing warehouse facilities; Moderate; Application; AACSB Category 3: Analytical thinking]

32. 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

[LO 10.4: To examine some prominent operational issues in warehousing; Moderate; Synthesis; AACSB Category 3: Analytical thinking]

33. In the United States, forklifts account for 1 of every ___________ workplace deaths.

a. 5

b. 6

c. 10

d. 14

[LO 10.4: To examine some prominent operational issues in warehousing; Moderate; Application; AACSB Category 3: Analytical thinking]

34. What is the most frequent source of injuries among warehousing personnel?

a. repetitive motion

b. assault by other warehousing personnel

c. workers struck by an object

d. back and shoulder injuries

[LO 10.4: To examine some prominent operational issues in warehousing; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

35. What is dunnage?

a. additional payment for special handling

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

[LO 10.4: To examine some prominent operational issues in warehousing; Moderate; Concept; AACSB Category 3: Analytical thinking]

36. The two most common causes of warehousing fires in recent years have been those caused by electrical distribution and lighting equipment and ___________.

a. those caused by lightning strikes

b. those that were intentionally set

c. those that resulted from the heat source being too close to combustibles

d. those where cutting or welding took place too close to combustibles

[LO 10.4: To examine some prominent operational issues in warehousing; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

37. 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

[LO 10.4: To examine some prominent operational issues in warehousing; Moderate; Application; AACSB Category 3: Analytical thinking]

38. 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 the material being stored?

c. What is the material’s source?

d. Where is the material being stored?

[LO 10.4: To examine some prominent operational issues in warehousing; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

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

a. building; equipment

b. buildings; cost

c. cost; processes

d. facilities; processes

[LO 10.4: To examine some prominent operational issues in warehousing; Moderate; Application; AACSB Category 3: Analytical thinking]

40. 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. Clean and sanitary warehousing facilities can reduce employee turnover.

d. Clean and sanitary warehousing facilities require costly technology.

[LO 10.4: To examine some prominent operational issues in warehousing; Difficult; Synthesis; AACSB Category 3: Analytical thinking]

True-False Questions

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

[LO: Beginning of the chapter material; Easy; Application; AACSB Category 3: Analytical thinking]

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

[LO 10.1: To discuss the role of warehousing in a logistics system; Moderate; Concept; AACSB Category 3: Analytical thinking]

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

[LO 10.1: To discuss the role of warehousing in a logistics system; Moderate; Synthesis; AACSB Category 3: Analytical thinking]

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

[LO 10.1: To discuss the role of warehousing in a logistics system; Moderate; Application; AACSB Category 3: Analytical thinking]

1. Accumulating involves bringing together similar stocks from different sources.

[LO 10.1: To discuss the role of warehousing in a logistics system; Easy; Concept; AACSB Category 3: Analytical thinking]

1. Assorting involves breaking larger quantities into smaller quantities.

[LO 10.1: To discuss the role of warehousing in a logistics system; Moderate; Concept; AACSB Category 3: Analytical thinking]

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

[LO 10.1: To discuss the role of warehousing in a logistics system; Moderate; Concept; AACSB Category 3: Analytical thinking]

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

[LO 10.1: To discuss the role of warehousing in a logistics system; Easy; Concept; AACSB Category 3: Analytical thinking]

1. Fulfillment centers represent a special type of distribution center that is focused on e-commerce orders.

[LO 10.1: To discuss the role of warehousing in a logistics system; Easy; Concept; AACSB Category 3: Analytical thinking]

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

[LO 10.1: To discuss the role of warehousing in a logistics system; Moderate; Synthesis; AACSB Category 3: Analytical thinking]

1. The preferred design for a cross-dock facility is an “H” shape.

[LO 10.1: To discuss the role of warehousing in a logistics system; Moderate; Synthesis; AACSB Category 3: Analytical thinking]

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

[LO 10.2: To learn about public, private, contract, and multiclient warehousing; Moderate; Application; AACSB Category 3: Analytical thinking]

1. In the United States, the Department of Commerce has primary responsibility for warehousing safety practices.

[LO 10.2: To learn about public, private, contract, and multiclient warehousing; Moderate; Application; AACSB Category 3: Analytical thinking]

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

[LO 10.2: To learn about public, private, contract, and multiclient warehousing; Moderate; Synthesis; AACSB Category 3: Analytical thinking]

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

[LO 10.2: To learn about public, private, contract, and multiclient warehousing; Easy; Application; AACSB Category 3: Analytical thinking]

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

[LO 10.2: To learn about public, private, contract, and multiclient warehousing; Moderate; Application; AACSB Category 3: Analytical thinking]

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

[LO 10.2: To learn about public, private, contract, and multiclient warehousing; Moderate; Synthesis; AACSB Category 3: Analytical thinking]

1. 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.

[LO 10.2: To learn about public, private, contract, and multiclient warehousing; Moderate; Application; AACSB Category 3: Analytical thinking]

1. In essence, multiclient warehousing mixes attributes of private and contract warehousing.

[LO 10.2: To learn about public, private, contract, and multiclient warehousing; Moderate; Concept; AACSB Category 3: Analytical thinking]

1. 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.

[LO 10.3: To analyze select considerations when designing warehouse facilities; Moderate; Synthesis; AACSB Category 3: Analytical thinking]

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

[LO 10.3: To analyze select considerations when designing warehouse facilities; Moderate; Application; AACSB Category 3: Analytical thinking]

1. Fixed slot location systems slot the most frequently picked items in the most accessible location.

[LO 10.3: To analyze select considerations when designing warehouse facilities; Moderate; Concept; AACSB Category 3: Analytical thinking]

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

[LO 10.3: To analyze select considerations when designing warehouse facilities; Moderate; Application; AACSB Category 3: Analytical thinking]

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

[LO 10.3: To analyze select considerations when designing warehouse facilities; Easy; Application; AACSB Category 3: Analytical thinking]

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

[LO 10.3: To analyze select considerations when designing warehouse facilities; Moderate; Application; AACSB Category 3: Analytical thinking]

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

[LO 10.3: To analyze select considerations when designing warehouse facilities; Easy; Application; AACSB Category 3: Analytical thinking]

1. Radio frequency identification is an example of warehouse automation.

[LO 10.3: To analyze select considerations when designing warehouse facilities; Moderate; Application; AACSB Category 3: Analytical thinking]

1. Recent estimates suggest that only approximately 30 percent of a warehousing facility’s cubic capacity is actually occupied by product.

[LO 10.3: To analyze select considerations when designing warehouse facilities; Moderate; Application; AACSB Category 3: Analytical thinking]

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

[LO 10.4: To examine some prominent operational issues in warehousing; Moderate; Synthesis; AACSB Category 3: Analytical thinking]

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

[LO 10.4: To examine some prominent operational issues in warehousing; Moderate; Synthesis; AACSB Category 3: Analytical thinking]

1. Forklifts account for one of every six workplace deaths in the United States.

[LO 10.4: To examine some prominent operational issues in warehousing; Moderate; Application; AACSB Category 3: Analytical thinking]

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

[LO 10.4: To examine some prominent operational issues in warehousing; Moderate; Application; AACSB Category 3: Analytical thinking]

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

[LO 10.4: To examine some prominent operational issues in warehousing; Moderate; Synthesis; AACSB Category 3: Analytical thinking]

1. Dunnage refers to charges for accessorial transportation service.

[LO 10.4: To examine some prominent operational issues in warehousing; Moderate; Concept; AACSB Category 3: Analytical thinking]

1. Fires are a constant threat in warehousing.

[LO 10.4: To examine some prominent operational issues in warehousing; Moderate; Application; AACSB Category 3: Analytical thinking]

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

[LO 10.4: To examine some prominent operational issues in warehousing; Moderate; Application; AACSB Category 3: Analytical thinking]

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

[LO 10.4: To examine some prominent operational issues in warehousing; Moderate; Application; AACSB Category 3: Analytical thinking]

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

[LO 10.4: To examine some prominent operational issues in warehousing; Moderate; Synthesis; AACSB Category 3: Analytical thinking]

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

[LO 10.4: To examine some prominent operational issues in warehousing; Moderate; Synthesis; AACSB Category 3: Analytical thinking]

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

[LO 10.4: To examine some prominent operational issues in warehousing; Moderate; Application; AACSB Category 3: Analytical thinking]