Quiz (Modules 1 to 6)

Question 1

You and your friend run a small-scale business of manufacturing spare parts. Your organisation had
purchased a warehouse to store raw materials and finished goods, but since the demand for your
products is very low in the market, the production is affected and now you need to justify the cost
incurred while purchasing the warehouse. So, you both decide to rent the warehouse so that it can be a
source of income and you find your peers requiring a warehouse in the same area. You rent it out to
them for use. Now, your warehouse falls under which of the following types?

Private

Government

Co-operative

Distribution Centre

Question 2

Raj is a warehouse manager working for a multinational company. Once, while around in the
warehouse, he notices that a worker is not following Standard Operating Procedure (SOP) for carrying
out the Picking activity and taking much more time than expected for picking. What should he do?

Do nothing as this is not his concern

Advise him on importance of SOP and ensure he is trained properly

Scold him in front of everyone so he does not dare to do same mistake again

None of the above

Question 3

The planning and forecasting department has estimated that there is going to be an increase in the price
of steel in the coming quarter. Since 50% of your raw material is steel, it is going to impact your
organisation harshly. What will be your plan of action to minimize the impact of the price hike?

This is not under your control so you can’t do anything

Stop buying from your supplier instantly

Work with planning team to forecast requirement and hold the same quantity in your inventory

None of the above

Your organisation is trying to set up a warehouse to store finished goods once they have been
manufactured. They have shortlisted three locations that can be ideal for the warehouse and they have
to decide which location to go ahead with. Based on which of the following factors will the decision be
made?

Accessibility of transport trucks to the warehouse location

Cost associated with building warehouse at that location

Possibility of growth / expansion of warehouse in future

All of the above

Question 5

Your manager has asked you to develop a detailed design of the warehouse and document all the
procedures that will be carried out in the warehouse. Which phase of Warehouse Design Process are
you in?

Engineering Phase

Pre-engineering Phase

Implementation phase

Go-Live Phase

Question 6

In the warehouse, the picker has picked goods from the rack as per the quantity assigned to him. What
will he do next?

GRN entry

Receiving at the docks

Send for packing

None of the above

Question 7

Mike has received a huge consignment of goods and unloaded it in the warehouse. When will he do the
quality check of these goods?

After unloading, in the staging area

After put-away to the racks

Randomly check if desired

No need to check for quality

A small-scale manufacturing company is reluctant to integrate Warehouse Management System (WMS)

WMS will improve the efficiency

They foresee a huge initial investment

They are not concerned about sustainability

They do not want to expand the capabilities of their organisation

Question 9

Raj works as a WMS project manager. He has to estimate the training cost to work upon the
implementation of WMS in his organisation. Which of the following is not a part of estimating training
cost for WMS?

Digital learning content along with telephone and email support

Practical training at vendor site using a standardised curriculum

Learners’ wi-fi costs for revising the digital learning content at their home

Practical training at warehouse or office locations using a custom curriculum

Question 10

In the heavy engineering industry, typically which of the following form of material handling or
movement method is not followed?

Fork lifts

Overhead Cranes

Conveyor belts

Manual handling

Question 11

You are given a task to design the layout of an upcoming new warehouse in your organisation. Which of
the following will not come under your prime consideration while designing?

Operational Efficiency of the warehouse you are designing

Operating cost of the warehouse

Employee’s absence from the warehouse

Flow of materials inside the warehouse

While arranging goods inside a warehouse, you are keeping them as per the lot that you are going to
ship in the near future. Which of the philosophies are you using to store goods?

Popularity Philosophy

Similarity Philosophy

Size Philosophy

Space Utilization Philosophy

Flag question: Question 13

After the implementation of WMS in your organisation, the management has decided to further
increase the efficiency and reduce human error in the picking process. So, they decided to automate the
picking process. What technology will they use to go ahead with the same?

Automated Storage and Retrieval System

Hand-held Devices

Bar code technology

None of the above

Flag question: Question 14

Due to the delay in the supply of goods from the warehouse, there has been a disagreement between
the organisation and its customers. Mike, being a logistic co-ordinator, is put up to the task to efficiently
disperse the goods to respective customers according to their requirement and revised delivery dates.
Which document will Mike make to efficiently handle the situation?

Tally Sheet

Distribution Plan

Warehouse Inspection report

Damage Report

Flag question: Question 15

Amazon Europe decided to demolish the defective goods returned back by the customers. For this
action, as a proof of demolition, which document will be used?

Commodity Reconstitution Record

Dispatch Authorization

Waybill

Commodity Disposal / Destruction Record

Flag question: Question 1

During the closing phase of financial accounts towards the end of the Financial Year, a manager is asked
to submit a report detailing various costs incurred in the warehouse. Under which category will the
salaries paid to supervisors come?

Direct labour cost

Indirect labour cost

Administrative cost

Overhead cost

Flag question: Question 2

A company wants to identify the Return on Investment (ROI) for the new picking process that is
implemented in the warehouse. For this, they use various matrices related to picking efficiency and
quantity picked per employee per hour. Which type of ROI category will be applicable here?

Tangible ROI

Intangible ROI

Support ROI

None of the above

Flag question: Question 3

During a monthly audit, the warehouse manager wants to find out if the four new forklifts that they
purchased last month are being put to use and used up to their capacity or not. Which of the following
indexes will give an idea about the same?

Activity-based costing

Depreciation value

Asset Utilization

None of the above

Flag question: Question 4

Mike wants to compare the process that is being followed in his organisation to that of his direct
competitors in the market. Which benchmarking will be more suitable to consider?

Internal Benchmarking

External Benchmarking

Combined Benchmarking
None of the above

Flag question: Question 5

Dock-to-Door utilization will come under which type of KPI?

Storage KPI

Picking KPI

Put-away KPI

Receiving KPI

Flag question: Question 6

In a warehouse, it was found that despite providing a good work-life balance, there was no significant
improvement in the productivity of employees. What can be the other reason for the same?

Stressful work

High heat and humidity

Poor visibility in Storage area

All of the above

Flag question: Question 7

There are many people going in and out of the warehouse on daily basis including workers, staff,
visitors, etc. What measures should be taken to avoid any security breach inside a warehouse?

Don’t allow anyone to enter warehouse premises

Install CCTV at regular intervals

Take deposits from everyone

None of the above

Flag question: Question 8

Internal auditor finds that electronic waste from the warehouse is not disposed of correctly. What
course of action needs to be followed by the warehouse?

Focus on the primary business objective rather than waste

Dump it at any other location

Create and follow waste management guidelines

None of the above

Which of the following sections is not considered under ISO14001?

Leadership

Market share

Improvement

Planning

Flag question: Question 10

What activities should Raj carry out in his warehouse to prepare the employees in case of Fire?

Mock fire drills

Installing protective and fire-resistant equipment

Installation of Fire-Fighting devices

All of the above

Flag question: Question 11

A warehouse manager is constantly facing issues to track the goods inside a warehouse. This in turn is
affecting the overall productivity of the warehouse. Which technology should he implement in order to
reduce this issue drastically?

RFID

Smart alarm

Automated Guided Vehicle

None of the above

Flag question: Question 12

RRR warehousing systems have decided to implement Wireless LAN inside their newly constructed
warehouse in Delhi. Which of the following will be the first step while setting up the LAN inside the
warehouse?

Installation of LAN servers

A survey to identify a place for setting up the office

A survey to identify place for setting up antennas

None of the above

Mike is giving a knowledge transfer session to newly joined employees who will be carrying out picking
activity inside the warehouse. While delivering the session on barcode scanners, which of the following
cannot be counted as a reason to leverage barcode scanners?

Ease in inventory management

Improvement of picking accuracy

Increase in the shelf life of products

Improvement of warehouse accuracy

Flag question: Question 14

A manufacturing organisation has found out that they are incurring a higher cost in storing goods inside
their own warehouse. Due to this, they are facing huge losses as they cannot increase the price of their
product drastically. What can be the way forward?

Continue doing the same as this is not under your control

Outsource the warehousing activities after proper analysis

Reduce the manufacturing capacity

None of the above

Flag question: Question 15

After thorough analysis ABC manufacturing systems have decided to outsource their logistic operations
to a third-party vendor. What points must be considered by them before selecting the right vendor?

IT capabilities of the vendor

KPIs that will be assessed

Financial capabilities of the vendor

All of the above