Supply Chain & Fulfillment Flashcards

What is 'cross-docking' in a warehouse fulfillment operation?

Answer: Transferring incoming shipments directly to outbound vehicles with minimal storage time

Cross-docking minimizes storage time by unloading inbound shipments and immediately loading them onto outbound transport.

An ecommerce merchant's carrying cost of inventory typically includes which of the following?

Answer: Storage fees, insurance, obsolescence, and opportunity cost of capital

Inventory carrying costs encompass warehousing, insurance, shrinkage, obsolescence risk, and the cost of capital tied up in stock.

What is the primary purpose of an EDI (Electronic Data Interchange) system in supply chain management?

Answer: To electronically exchange standardized business documents between trading partners

EDI enables automated, standardized document exchange (purchase orders, invoices, ASNs) between suppliers, retailers, and logistics partners.

Which approach to ecommerce returns management is considered best practice for customer retention?

Answer: Offering a prepaid return label and fast refund processing

Hassle-free returns with prepaid labels and prompt refunds significantly improve customer loyalty and repeat purchase rates.

What is 'kitting' in warehouse fulfillment operations?

Answer: Assembling multiple individual items into a single packaged unit before shipping

Kitting combines separate SKUs into a bundled product unit, reducing pick time and enabling bundle offers for customers.

In supply chain terminology, what does 'lead time' refer to?

Answer: The total time from placing an order with a supplier to receiving the goods

Lead time encompasses the full cycle from order placement to receipt of goods, including processing, manufacturing, and transit time.

Which technology is most commonly used for real-time inventory tracking across a large warehouse?

Answer: RFID (Radio Frequency Identification) tags

RFID enables automatic, real-time tracking of inventory movement without line-of-sight scanning, making it ideal for large-scale warehouses.