PRELIM EXAMINATION

LM 004 WAREHOUSING

NAME__________________________________________ SCORE_______________

Instructions:
I: Multiple choice- Write the letter of the best answer on the space before each item.

1. The objective of the operation is to ensure materials and goods are kept in the required
condition and are available for movement (transport) to the next stage in the supply chain.
a. Logistics operation c. Warehousing operation
b. Inventory management d. Purchasing management

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

3. Involves bringing together similar stocks from different sources.

a. Bulk-breaking b. Assorting c. Accumulating d. Sorting out

4. In this function, the warehouse acts as a buffer between supply and demand.
a. Stockpiling b. Production c. Product Mixing d. Consolidation

5. What is the primary goal of warehouse management?

a. Maximizing warehouse space c. Reducing labor costs
b. Ensuring timely order fulfillment d. Minimizing inventory levels

6. What does the process of receiving in warehouse management involve?

a. Packing and shipping orders
b. Organizing products in the warehouse
c. Accepting and inspecting incoming shipments
d. Managing inventory levels

7. Warehousing is needed for the storage of raw materials, components, sub-assemblies, work in
progress and finished goods.
a.Stockpiling b. Production c. Product Mixing d. Consolidation

8. Refers to building up a variety of different products for resale to particular customers.

a. Accumulating b. Allocating c. Sorting out d. Assorting

9. Which component of warehouse management involves retrieving products from storage to fulfill
customer orders?
a. Receiving b. Inventory Management c. Order Picking d. Packing and Shipping

10. The following are characteristics of an ideal warehouse, except;

a. Sufficient parking space c. convenient place near highways
b. Round the clock security arrangement d. Limited equipment for loading and unloading
11. Warehousing is owned by the firm storing goods in the facility.
a. Private b. Public c. Contract d. Multiclient

12. Refers to separating products into grades and qualities desired by different target markets.
a. Assorting b. Sorting out c. Allocating d. Accumulating

13. What technology is commonly used in warehouse management to track and manage inventory
levels?
a. Warehouse Management Systems (WMS) c. Barcode scanners
b. Artificial Intelligence (AI) d. Virtual Reality (VR)

14. Why is accurate inventory management important in warehouse management

a. To optimize warehouse space c. To reduce labor costs
b. To prevent stockouts and overstock situations d. To improve order picking efficiency

15. What is the purpose of order packing in warehouse management?

a. To inspect incoming shipments c. To retrieve products from storage
b. To prepare products for shipping d. To track inventory levels

16. Which component of warehouse management involves determining the most suitable storage
locations for different products?
a. Receiving b. Inventory Management c. Order Picking d. Storage

17. 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

18. How does a Warehouse Management System (WMS) contribute to warehouse operations?
a. It optimizes warehouse space
b. It reduces labor costs
c. It streamlines processes and improves efficiency
d. It tracks inventory using barcode scanners

19. Why is labor management important in warehouse operations?

a. To optimize warehouse space c. To reduce labor costs
b. To ensure timely order fulfillment d. To track inventory levels

20. A public warehouse is:

a. typically open to the public for the purchase of itemsat wholesale prices.
b. actually a firm that offers warehouse services for a fee.
c. always owned by a group of small retail firms.
d. usually requires the users to staff the facility with their people.
 21. A benefit(s) of public warehousing is that a firm:
a. can place products close to customers. c. will not need a contract.
b. can store a wide range of products. d. a and c

22. The primary objective of a company with regard to warehousing should be to:
a. Always have a lot of warehouse space available.
b. Have a large inventory of products available.
c. Maximize the use of the warehouse resources while satisfying customer requirements.
d. Avoid oversized shipping cartons

23. The main resources of a warehouse are (1) space, (2) equipment, and (3):
a. Personnel. c. Product liability insurance.
b. The tax laws. d. Government regulations.

24. The key to good monitoring and control of warehouse operations is:
a. Good investigators C. large budgets.
b. a lot of people d. A good set of criteria for assessing operations.

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

a. warehousing and materials handling c. transportation and warehousing
b. order management and materials handling d. packaging and transportation

26. The fluid model immediately suggests the following general guidelines to warehouse design and
operation such as, except;
a. Keep the product moving;
b. avoid starts and stops, which mean extra handling and additional space requirements.
c. Avoid layouts that impede smooth flow.
d. Ignore bottlenecks to flow.

II. TRUE OR FALSE- Write the word TRUE if the statement is true and FALSE if it is false.

_____27. Many well-run companies view warehousing as a strategic consideration and as a potential
source of competitive advantage. (True)

_____28. Materials handling has been referred to as transportation at zero miles per hour. (False)

_____29. Warehousing is needed because patterns of production and consumption may not coincide.
(True)

_____30. Assorting and sorting refer to adjustments associated with the quantity of product. (False)

_____31. Accumulating involves bringing together similar stocks from different sources. (True)

_____32. Assorting involves breaking larger quantities into smaller quantities. (False)

_____33. Warehouses emphasize the rapid movement of products through a facility and attempt to
 maximize throughput. (False)

_____34. With public warehousing the user rents space as needed, thus avoiding the cost of unneeded
space. (True)

_____35. Perhaps the biggest drawback to public warehousing is the inability to provide specialized
services. (False)

_____36. Private warehousing tends to be feasible when demand patterns are relatively stable. (True)

_____37. Private warehousing offers potential users a great deal of control over their storage needs.
(True)

_____38. Public warehousing has embraced value-adding activities such as customization and reverse
logistics to a greater degree than has contract warehousing. (False)

_____39. 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. (True)

_____40. Narrower aisles can increase the space utilization of a facility. (True)

_____41. Motivation of warehousing employees can be difficult because of the somewhat repetitive
nature of the operation. (True)

_____42. Potential threats to warehousing security include theft, pilferage, heat and humidity, and fire.
(True)

_____43. Clean and sanitary warehousing facilities can have a positive impact on employee safety,
morale, and productivity. (True)
_____44. Back and shoulder injuries are the most frequent injuries among warehousing personnel.
(True)
_____45. In general, warehousing security can be enhanced by focusing on people, facilities, and
information. (False)