SESSION 3 2022/2023

The best transportation method for fluids is:

• Pipeline

• Road transport

• Water transport

• Railway transport

Railroads once ranked highest among transportation modes due to:

• Flexibility

• High speed

• Limited load size

• Extensive miles in service

In which pricing strategy does each customer pay the exact freight cost from the factory?

• Zone pricing

• Base-point pricing

• FOB origin pricing

• FOB destination pricing

Which option describes in-transit inventory?

• Shipper owns the product

• Stock shipped from manufacturing

• Delivered to the customer

• Shipper holds full payment

This type of stock protects against shortages and price increases:

• Deadstock

• Safety stock

• Seasonal stock

• Speculative stock

Warehouses provide one-stop shopping for goods from multiple sources through:

• Spot-stocking

• Full-line stocking

• Seasonal stocking

• Value-added service

Bonded warehouses are government-licensed to store goods until:

• Customer payment

• Customs duties are paid

• Customs inspection

• Seller pickup

Which is NOT a product handling activity in warehouse operations?

• Product put-away

• Receive inventory

• Order picking

• Replacement stock

If warehouses never need replenishment, it could result in:

• Insufficient active storage area

• Inefficient order-picking labor

• Temporary stock-outs

• Picking inefficiency

Managing supplier selection, agreements, and pricing is known as:

• Purchasing

• Procurement

• Stock control

• Supply chain management