Supply Chain & Fulfillment Flashcards
7 cards from real CEC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Supply Chain & Fulfillment flashcards as text
What is 'last-mile delivery' in ecommerce fulfillment?
Answer: The last segment of the delivery journey from a local hub to the customer's door
Last-mile delivery is the final step in the fulfillment chain, moving goods from a local distribution point to the end customer's address.
An ecommerce company's Days Inventory Outstanding (DIO) is 90 days. What does this indicate?
Answer: On average it takes 90 days to sell through its inventory
DIO (also called Days in Inventory) measures how many days on average inventory is held before being sold; a high DIO may indicate overstocking.
What is a 'Warehouse Management System' (WMS) primarily designed to do?
Answer: Optimize and control warehouse operations including receiving, putaway, picking, and shipping
A WMS manages all internal warehouse processes from inbound receiving to outbound shipping, optimizing labor and space utilization.
Which method of order picking is most efficient for a high-volume ecommerce warehouse with many small orders?
Answer: Batch picking (picking multiple orders simultaneously in one warehouse pass)
Batch picking allows warehouse staff to fulfill multiple orders in a single warehouse traversal, dramatically reducing travel time per order.
What is the key advantage of using a Transportation Management System (TMS) for an ecommerce brand?
Answer: It optimizes carrier selection, route planning, and freight costs across shipments
A TMS automates carrier rate shopping, load optimization, and shipment tracking, reducing freight costs and improving delivery performance.
What does 'landed cost' mean when sourcing products internationally for an ecommerce business?
Answer: The total cost of a product including purchase price, shipping, customs duties, and all fees to get it to your warehouse
Landed cost is the complete cost of acquiring a product including supplier price, international freight, import duties, insurance, and any handling fees.
Which of the following best describes a 'vendor-managed inventory' (VMI) arrangement?
Answer: The supplier monitors and replenishes the retailer's inventory based on agreed stock levels
In VMI, the supplier takes responsibility for monitoring inventory levels at the retailer and triggering replenishment when stock falls below agreed thresholds.