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TEST BANK
CHAPTER 10: WAREHOUSING MANAGEMENT
Multiple Choice Questions (correct answers are bolded)
1. Warehousing and ___________ are substitutes for each other.
2. Which of the following has been referred to as “transportation at zero miles per hour”?
3. ___________ and ___________ refer to adjustments associated with the quantity of product.
4. ___________ involves bringing together similar stocks from different sources.
2
5. ___________ refers to building up a variety of different products for resale to particular
customers.
6. ___________ refers to separating products into grades and qualities desired by different target
markets.
7. Warehouses emphasize ___________ and their primary purpose is to maximize ___________.
8. Distribution centers emphasize ___________, and their primary purpose is to maximize
___________.
9. Throughput refers to ___________.
10. ___________ are focused on e-commerce orders.
11. ___________ refers to a process of receiving product and shipping it out the same day or
overnight without putting it into storage.
12. Which of the following is not a possible design shape for a cross-dock facility?
13. Warehousing labor safety practices in the United States are monitored by which federal
government agency?
4
14. Which of the following is not a characteristic of public warehousing?
15. What are the two major sources of labor in logistics?
16. What is considered to be the biggest drawback to public warehousing?
17. ___________ warehousing is owned by the firm storing goods in the facility.
18. Which of the following statements about private warehousing is false?
5
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.
20. Multiclient warehousing mixes attributes of ___________ and ___________ warehousing.
21. Which of the following statements is false?
22. Trade-offs must be made among space, labor, and ___________ with respect to warehousing
design.
6
23. ___________ is a popular strategy that slots the most frequently picked items in the most
accessible location.
24. A key advantage of fixed slot locations in a warehouse is ___________.
25. A key advantage of variable slot locations in a warehouse is ___________.
26. As one builds higher, building costs ___________, while warehousing equipment costs tend
to ___________.
7
27. Which of the following statements about a one-dock layout is false?
28. Narrow aisles can store ___________ to ___________ percent more product than
conventional aisles.
29. Which of the following is not an example of warehouse automation?
30. Which of the following is not a trade-off in warehousing design?
31. One estimate suggests that only approximately ___________ percent of a facility’s cubic
capacity is actually occupied by product.
32. Which of the following is not a potential measure of warehousing productivity?
33. In the United States, forklifts account for 1 of every ___________ workplace deaths.
34. What is the most frequent source of injuries among warehousing personnel?
35. What is dunnage?
36. The two most common causes of warehousing fires in recent years have been those caused
by electrical distribution and lighting equipment and ___________.
37. A safety data sheet (SDS) is required for ___________.
38. Which of the following is not one of the four questions associated with effective management
of hazardous materials storage?
39. In general, warehousing security can be enhanced by focusing on people, ___________, and
___________.
10
40. Which of the following statements is false?
True-False Questions
1. Many well-run companies view warehousing as a strategic consideration and as a potential
[LO: Beginning of the chapter material; Easy; Application; AACSB Category 3: Analytical
thinking]
[LO 10.1: To discuss the role of warehousing in a logistics system; Moderate; Concept; AACSB
Category 3: Analytical thinking]
3. 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]
[LO 10.1: To discuss the role of warehousing in a logistics system; Moderate; Application;
AACSB Category 3: Analytical thinking]
[LO 10.1: To discuss the role of warehousing in a logistics system; Easy; Concept; AACSB
Category 3: Analytical thinking]
[LO 10.1: To discuss the role of warehousing in a logistics system; Moderate; Concept; AACSB
Category 3: Analytical thinking]
7. Warehouses emphasize the rapid movement of products through a facility and attempt to
[LO 10.1: To discuss the role of warehousing in a logistics system; Moderate; Concept; AACSB
Category 3: Analytical thinking]
8. Throughput is the amount of product entering and leaving a warehousing facility in a given
[LO 10.1: To discuss the role of warehousing in a logistics system; Easy; Concept; AACSB
Category 3: Analytical thinking]
9. Fulfillment centers represent a special type of distribution center that is focused on e-
[LO 10.1: To discuss the role of warehousing in a logistics system; Easy; Concept; AACSB
Category 3: Analytical thinking]
10. One drawback of cross-docking is that it increases the amount of necessary warehousing
[LO 10.1: To discuss the role of warehousing in a logistics system; Moderate; Synthesis;
AACSB Category 3: Analytical thinking]
[LO 10.1: To discuss the role of warehousing in a logistics system; Moderate; Synthesis;
AACSB Category 3: Analytical thinking]
12. With public warehousing the user rents space as needed, thus avoiding the cost of unneeded
[LO 10.2: To learn about public, private, contract, and multiclient warehousing; Moderate;
Application; AACSB Category 3: Analytical thinking]
13. In the United States, the Department of Commerce has primary responsibility for
[LO 10.2: To learn about public, private, contract, and multiclient warehousing; Moderate;
Application; AACSB Category 3: Analytical thinking]
14. Perhaps the biggest drawback to public warehousing is the inability to provide specialized
[LO 10.2: To learn about public, private, contract, and multiclient warehousing; Moderate;
Synthesis; AACSB Category 3: Analytical thinking]
[LO 10.2: To learn about public, private, contract, and multiclient warehousing; Easy;
Application; AACSB Category 3: Analytical thinking]
16. 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]
17. Public warehousing has embraced value-adding activities such as customization and reverse
[LO 10.2: To learn about public, private, contract, and multiclient warehousing; Moderate;
Synthesis; AACSB Category 3: Analytical thinking]
18. Three-to-five year contracts appear to allow sufficient time for contract warehouses to learn
[LO 10.2: To learn about public, private, contract, and multiclient warehousing; Moderate;
Application; AACSB Category 3: Analytical thinking]
19. 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]
20. A storage facility with low rates of product turnover should be laid out in a manner that
[LO 10.3: To analyze select considerations when designing warehouse facilities; Moderate;
Synthesis; AACSB Category 3: Analytical thinking]
21. Trade-offs must be made among space, labor, and mechanization with respect to
[LO 10.3: To analyze select considerations when designing warehouse facilities; Moderate;
Application; AACSB Category 3: Analytical thinking]
22. Fixed slot location systems slot the most frequently picked items in the most accessible
13
[LO 10.3: To analyze select considerations when designing warehouse facilities; Moderate;
Concept; AACSB Category 3: Analytical thinking]
[LO 10.3: To analyze select considerations when designing warehouse facilities; Moderate;
Application; AACSB Category 3: Analytical thinking]
[LO 10.3: To analyze select considerations when designing warehouse facilities; Easy;
Application; AACSB Category 3: Analytical thinking]
25. A one-dock warehouse layout, in contrast to a two-dock layout, increases the space needed
[LO 10.3: To analyze select considerations when designing warehouse facilities; Moderate;
Application; AACSB Category 3: Analytical thinking]
[LO 10.3: To analyze select considerations when designing warehouse facilities; Easy;
Application; AACSB Category 3: Analytical thinking]
[LO 10.3: To analyze select considerations when designing warehouse facilities; Moderate;
Application; AACSB Category 3: Analytical thinking]
28. Recent estimates suggest that only approximately 30 percent of a warehousing facility’s
[LO 10.3: To analyze select considerations when designing warehouse facilities; Moderate;
Application; AACSB Category 3: Analytical thinking]
29. Motivation of warehousing employees can be difficult because of the somewhat repetitive
[LO 10.4: To examine some prominent operational issues in warehousing; Moderate; Synthesis;
AACSB Category 3: Analytical thinking]
30. Increases in warehousing productivity require significant investment in technology or
[LO 10.4: To examine some prominent operational issues in warehousing; Moderate; Synthesis;
AACSB Category 3: Analytical thinking]
14
[LO 10.4: To examine some prominent operational issues in warehousing; Moderate;
Application; AACSB Category 3: Analytical thinking]
[LO 10.4: To examine some prominent operational issues in warehousing; Moderate;
Application; AACSB Category 3: Analytical thinking]
33. 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]
[LO 10.4: To examine some prominent operational issues in warehousing; Moderate; Concept;
AACSB Category 3: Analytical thinking]
[LO 10.4: To examine some prominent operational issues in warehousing; Moderate;
Application; AACSB Category 3: Analytical thinking]
36. Government regulations require organizations to create a safety data sheet (SDS) for each
[LO 10.4: To examine some prominent operational issues in warehousing; Moderate;
Application; AACSB Category 3: Analytical thinking]
37. Buildings that store hazardous materials often have walls and doors that can withstand
[LO 10.4: To examine some prominent operational issues in warehousing; Moderate;
Application; AACSB Category 3: Analytical thinking]
38. 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]
15
39. In general, warehousing security can be enhanced by focusing on people, facilities, and
[LO 10.4: To examine some prominent operational issues in warehousing; Moderate; Synthesis;
AACSB Category 3: Analytical thinking]
40. Clean and sanitary warehousing facilities can have a positive impact on employee safety,
[LO 10.4: To examine some prominent operational issues in warehousing; Moderate;
Application; AACSB Category 3: Analytical thinking]
