Exam Questions and Answers
1.Which kind of warehouse allows a company to keep imported
merchandise for a certain period of time without paying duties or tariffs?
a. Distribution center
b. Duty-free shop
c. Customs warehouse
d. Raw materials warehouse
e. Consolidation warehouse
Answer c
2.What type of warehouse serves as a regional distribution point, where
truck- loads ship freight inbound with the local deliveries via less-than-
truckload transportation?
a. Liquidation warehouse
b. Distribution center
c. Customs warehouse
d. Raw materials warehouse
e. Breakbulk warehouse
Answer e
3.Which of the following is a relatively new function performed in
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, many warehouses?
a. Receipt of goods
b. Product processing for final assembly
c. Transferring products to storage
d. Order picking
e. Order staging for shipment
Answer b
4.Which of the following is not a good reason for warehousing?
a. Allows economies-of-scale in transportation and production
b. Enables smoother coordination of supply and demand
c. Supports customer service requirements
d. Allows firm to take advantage of quantity purchase discounts
e. To keep inventories for the sake of obsolescence
Answer e
5.Which of the following is the least productive use of warehouses?
a. Supply mixing
b. Product mixing
c. Outbound consolidation
d. Reduce investment in labor and equipment
e. Inbound consolidation
Answer d
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