1. A warehouse can be used to import goods when a quota is open, so that they can be sold year round. 
*a. True 
b. False

2. A warehouse can be used to smooth out the seasonality of the supply of a particular raw material. 
*a. True
b. False

3. Warehouses can be used to store items when demand is seasonal, so that production can remain roughly constant throughout the year. 
*a. True
b. False

4. There are three levels to consider when deciding the location of a warehouse. 
*a. True
b. False

5. The quality of the local school system has no impact on the decision to locate a warehouse in a particular city. 
a. True
*b. False

6. A public warehouse is owned by the local government. 
a. True
*b. False

7. The first activity that a warehouse engages in, chronologically, is receiving the goods. 
*a. True
b. False

8. In a warehouse, goods are kept in their secondary or tertiary package to protect them from possible handling damages. 
a. True
*b. False 

9. In a warehouse, pallets of goods are frequently placed on vertical racks. 
*a. True
b. False

10. Racks that reach 60 meters (180 feet) are called very high bay racks. 
*a. True
b. False

11. Gravity-fed racks encourage a first-in first-out inventory policy. 
*a. True
b. False

12. Picking is the most labor intensive activity in a warehouse. 
*a. True 
b. False

13. In a picker-to-goods strategy, as much as 50 percent of a pickers time is spent traveling in the warehouse. 
*a. True
b. False

14. Pickers operate the Kiva robots that operate in the amazon. com warehouses. 
a. True
*b. False

15. The goods-to-picker strategy is the one most commonly employed in warehousing. 
a. True
*b. False

16. Cluster picking involves picking multiple orders at a time. The picker keeps the orders separate. 
*a. True
b. False

17. Batch picking involves picking multiple orders at a time. The picker keeps the orders separate. 
a. True
*b. False

18. The paper-list picking technique is the one that relies the most on the ability of the picker to choose the right item in the right quantity, without an independent method to ensure accuracy. 
*a. True
b. False
 
19. Voice-recognition technology allows the picker to work with both hands. 
*a. True
b. False

20. Warehouses are able to place returns from customers directly on shelves for re-sale. 
a. True
*b. False

21. Value-added services include inserting instruction booklets in boxes and labeling goods for local markets. 
*a. True
b. False

22. The A-B-C rule stands for all business consolidated rule. 
a. True
*b. False

23. The staging area of a warehouse refers to the area where goods are placed before they are loaded in trucks. 
*a. True
b. False

24. The main security concern of warehouse managers is terrorism. 
a. True
*b. False

25. Screening of employees is considered to be the best preventive measure for avoiding thefts in warehouses. 
*a. True
b. False



1. Warehouses have many functions. One of them is to:
~ Warehouses exist in part to reduce the response time to a customers order.  
@ Warehouses exist in part to reduce the response time to a customers order.  
*a. Reduce the response time on a customers order. 
b. Reduce the inventory carrying costs of the company. 
c. Reduce duty rates for the company. 
d. Increase the response time to a customers order. 
e. Increase the inventory carrying costs for the company. 

2. Warehouses can smooth out variations in:
~ Warehouses are used to smooth out variations due to to the seasonality of end products, to the seasonality of raw materials availability, to fluctuations in prices, and in marketing efforts that generate changes in sales volume. 
@ Warehouses are used to smooth out variations due to to the seasonality of end products, to the seasonality of raw materials availability, to fluctuations in prices, and in marketing efforts that generate changes in sales volume. 
a. End-product sales (seasonality). 
b. Raw-material availability. 
c. Raw materials price fluctuations. 
d. Marketing efforts. 
*e. All answers in this set of responses are variations that warehouses can smooth out. 

3. When there can be potential disruptions in the supply chain, such as strikes, bad weather, or natural disasters, warehouses can help companies support their operations by:
~ Warehouses can carry safety stocks to absorb variations in lead times for raw materials and final products. 
@ Warehouses can carry safety stocks to absorb variations in lead times for raw materials and final products. 
a. Manufacturing extra products. 
*b. Carrying safety stocks. 
c. Reducing labor costs. 
d. Increasing inventory turns. 
e. Reducing service levels. 

4. In a warehouse, consolidation refers to the process of:
~ Consolidation is the process of taking shipments of products from different sources, obtained in large quantities, and combining them with other products that are then sold to customers. 
@ Consolidation is the process of taking shipments of products from different sources, obtained in large quantities, and combining them with other products that are then sold to customers. 
*a. obtaining products from different sources and packaging them with other products so they can be sold together to customers. 
b. obtaining products from different manufacturers and selling them in smaller quantities to customers. 
c. obtaining products from different sources in large quantities and selling them in smaller quantities to customers. 
d. obtaining parts from different sources and manufacturing end products from these parts. 
e. obtaining parts from different manufacturers and hiring suppliers to assemble them into end products. 

5. Warehouses can provide additional services to manufacturers; packaging goods in different quantities, adding different-language instruction booklets, changing labels, or providing after-sale services, such as warranty work. Collectively, these activities are called:
~ Any additional service provided by a warehouse is considered a value-added service. 
@ Any additional service provided by a warehouse is considered a value-added service. 
a. Ancillary services 
b. Customer-centered services
*c. Value-added services
d. After-sale services
e. Related services

6. The three decision levels to consider when locating a warehouse are:
~ A warehouse location is determined after considerations at the regional, municipal, and parcel levels. 
@ A warehouse location is determined after considerations at the regional, municipal, and parcel levels. 
a.  The regional, municipal, and local levels. 
b. The national, regional, and local levels. 
c. The national, regional, and parcel levels. 
*d. The regional, municipal, and parcel levels. 
e. The global, national, and municipal levels. 

7. In which of the following types of warehouses does an exporter rent space as needed, and therefore which type of warehouse would be only a variable cost?
~ A public warehouse rents space to companies that need it, and that amount of space can change quickly, making this transaction a variable cost. Contract warehouses and private warehouses involve long-term contracts that have fixed costs, regardless of the amount of space utilized. 
@ A public warehouse rents space to companies that need it, and that amount of space can change quickly, making this transaction a variable cost. Contract warehouses and private warehouses involve long-term contracts that have fixed costs, regardless of the amount of space utilized. 
a. Private warehouse. 
b. Contract warehouse. 
*c. Public warehouse. 
d. Common warehouse. 
e. Universal warehouse. 

8. Chronologically, what is the first activity that takes place in a warehouse?
~ The first activity in a warehouse consists of receiving the goods before they are stored, picked, packaged, or shipped. 
@ The first activity in a warehouse consists of receiving the goods before they are stored, picked, packaged, or shipped. 
*a. Receiving
b. Storing
c. Picking
d. Packaging 
e. Shipping

9.  Which of the following racking alternatives does not exist?
~ All styles of racks mentioned in this answer exist, with the exception of wide-bay racks. 
@ All styles of racks mentioned in this answer exist, with the exception of wide-bay racks. 
a. Mobile racks 
b. Wide-aisle low-bay racks
c. Gravity-fed racks. 
d. Very-high-bay racks
*e. Wide-bay racks

10. Warehouse construction is constrained by a trade-off between:
~ In all cases, warehouse construction is a trade-off between the cost of land (low-level racking and wide aisles) and the cost of construction (floors able to sustain greater weights and racking costs) and operation storage and retrieval more capital intensive and time consuming). 
@ In all cases, warehouse construction is a trade-off between the cost of land (low-level racking and wide aisles) and the cost of construction (floors able to sustain greater weights and racking costs) and operation storage and retrieval more capital intensive and time consuming). 
a. cost of construction and cost of operation. 
*b. cost of land and costs of construction and operation. 
c. cost of land and cost of capital. 
d. cost of inventory and cost of storage. 
e. cost of land and cost of racking sys-tem(s). 

11. Automated Storage and Retrieval Systems use conveyor belts and very high-bay racks to store goods. Their accuracy and reliability is very high; however, they must use pallets that are:
~ ASRS systems require pallets or containers that are uniform in size and in perfect condition. They do not need to be made of composite materials. 
@ ASRS systems require pallets or containers that are uniform in size and in perfect condition. They do not need to be made of composite materials. 
a. in perfect condition
b. made of composite materials
c. identical in size
*d. in good condition and uniform in size
e. of a size that is non-standard  

12. Amaxon. coms Kiva robots are part of a picking strategy called: 
~ The robots used by Amazon. com are an example of a goods-to-picker strategy. 
@ The robots used by Amazon. com are an example of a goods-to-picker strategy. 
a. Picker to goods. 
b. Racks to picker. 
c. Goods to racks. 
*d. Goods to picker. 
e. Pods to picker. 

13. In a picker-to-goods strategy, the picker spends most of his/her time:
~ As much as 50 percent of a pickers time in a picker-to-goods operation is spent on traveling to different locations in the warehouse. 
@ As much as 50 percent of a pickers time in a picker-to-goods operation is spent on traveling to different locations in the warehouse. 
a. picking goods. 
b. shipping goods. 
*c. traveling from one location to another. 
d. packaging goods. 
e. processing paperwork related to the pick. 

14. What is the name of the practice that consists of requiring pickers to gather the items for several orders at once, but keep them separate in separate totes?
~ Batch picking consists of gathering the goods for several orders at once, and having the picker keep orders apart by placing the goods in separate totes. 
@ Batch picking consists of gathering the goods for several orders at once, and having the picker keep orders apart by placing the goods in separate totes. 
a. Pick to order
b. Batch picking
*c. Cluster picking
d. Zone picking
e. Bundle picking

15. What is the picking technique that allows the picker to have both of his/her hands free while selecting goods?
~ Both voice picking and light picking (not in this question) leave pickers with their hands free. 
@ Both voice picking and light picking (not in this question) leave pickers with their hands free. 
a. Paper picking
b. Label picking
c. Sound picking
*d. Voice picking
e. Barcode picking

16. Receiving docks, shipping docks, and a staging area are parts of a warehouse layout that are considered______________. 
~ Receiving docks, shipping docks, staging areas (as well as other areas such as service areas, charging areas, and office space) are considered fixed areas in a warehouse layout. 
@ Receiving docks, shipping docks, staging areas (as well as other areas such as service areas, charging areas, and office space) are considered fixed areas in a warehouse layout. 
*a. necessary
b. fixed
c. flexible
d. cost centers
e. peripheral

17. What is the name of the concept that observes that 80 percent of inventory costs are generated by 20 percent of the products?
~ Paretos Law was coined by Joseph Juran, and refers to the 80/20 rule expressed in the question. 
@ Paretos Law was coined by Joseph Juran, and refers to the 80/20 rule expressed in the question. 
a. Jurans Law
b. Demings Law 
c. Da Vincis Law
d. Pueblos Law
*e. Paretos Law

18. Most warehouses storage areas are organized:
~ Most warehouses are organized on some variation of the A-B-C rule, whether it is by sales, volume, size, velocity or some other criterion. 
@ Most warehouses are organized on some variation of the A-B-C rule, whether it is by sales, volume, size, velocity or some other criterion. 
a. using some form of alphabetical rule 
b. using some form of organization based on the Dewey Decimal System
*c. using some form of A-B-C rule
d. using streets and avenues like a citys grid. 
e. using some form of organization following a design proposed by the American Society of Warehouse Engineers. 

19. Which storage option allows a warehouse to handles products that must be shipped on a first-in-first-out basis---the oldest items in the storage area must be shipped first---most easity?
~ First-in-first-out shipments are faciltitated by gravity-fed racks that present the oldest item to the pick face. 
@ First-in-first-out shipments are faciltitated by gravity-fed racks that present the oldest item to the pick face. 
a. High-bay narrow-aisle racks. 
b. Low-bay wide-aisle racks. 
*c. Roller gravity-fed racks. 
d. No racks; goods are stacked on the floor. 
e. Mobile racks. 

20. Properly screening and training warehouse employees improve a warehouses ability to reduce which two primary security risks?
~ Theft and damage to the goods, from carelessness or mishandling, are the two primary risks for a warehouse. They can be reduced with careful screening and continuous training. 
@ Theft and damage to the goods, from carelessness or mishandling, are the two primary risks for a warehouse. They can be reduced with careful screening and continuous training. 
a. Pilferage and theft
b. Terrorism and theft. 
*c. Theft and damage to the goods. 
d. Terrorism and pilferage. 
e. Screening and training do not reduce the primary risks to a warehouse. . 

 
Type: F
1. Warehouses can be used to manage in the _______________ part of the supply chain, that consists of the procurement processes of the firm. 
a. upstream
b. up portion

Type: F
2. Warehousing is necessary when a product is made with a seasonal agricultural product but sells _________. 
a. year-round
b. year round
c. all year
d. yearround

Type: F
3. A distribution center is a warehouse whose primary function is _________, bringing large quantities of products manufactured in different areas and shipping them together in smaller shipments to downstream members of the supply chain. 
a. consolidation

Type: F
4. All of the public and private goods that facilitate transportation, communication, and business exchanges, and which feature prominantly in the site selection for a warehouse are collectively called _________________. 
a. infrastructure

Type: F
5. When a company decides to invest in a _________________operation, it builds its warehouse on a piece of land on which no building has been erected before. 
a. greenfield
b. green field

Type: F
6. In a  ____________________ warehouse, an exporter rents space from a company that also sells space to other tenants. 
a. public

Type: F
7. When a warehouse receives goods shipped by truck, they are unloaded on a ________. 
a. dock

Type: F
8. When the cost of land is high, warehouses tend to build  ____________________ racks. 
a. higher
b. high
c. tall

Type: F
9. Very-high-bay racks are integrated in the building of the facility; they can be ______ high . 
a. 60 meters 
b. 60 m
c. 180 feet
d. 180 ft

Type: F
10. In a warehouse running on a _______________ strategy, much of the pickers time is wasted in traveling from pick face to pick face. 
a. picker-to-goods
b. picker to goods
c. pickers to goods
d. pickers-to-goods

Type: F
11. When a warehouse runs a ____________ technique, the employee picks several orders at once, but does not keep them separate; they are gathered in the same cart or pallet. 
a. batch picking
b. batch-picking

Type: F
12. Picking can use a simple technology where the picker obtains a list printed on a sheet of _______, which are eventually placed on each item picked. 
a. labels

Type: F
13. In a warehouse, returned goods are _____________ for inspection rather than immediately placed back on shelving. 
a. segregated
b. isolated
c. set aside

Type: F
14. In an A-B-C classification, the C goods represent ______ percent of the costs, and 50 percent of the products. 
a. Five
b. 5

Type: F
15. Most warehouse thefts involve people who are ____________________. 
a. insiders
b. employees