Which of the Following Reduces Product Handling, Inventory, and Facility

question 46

Multiple Choice

Which of the following reduces product handling, inventory, and facility costs, but requires both (1) tight scheduling and (2) accurate inbound product information?

• A) phantom-docking
• B) random stocking
• C) ASRS
• D) customizing
• E) cross-docking

---

Definitions:

Cost of Goods Available

It represents the total value of inventory available for sale during a period, calculated by adding the cost of goods purchased or manufactured to the opening inventory.

Consignment Arrangement

An agreement where goods are placed in the hands of another party to sell, but the ownership remains with the supplier until the goods are sold.

Consignor Ownership

Describes a situation where goods are given to another party (consignee) to sell, but the original party (consignor) retains ownership until the goods are sold.

Consignee

The party or entity that receives goods for sale, storage, or transfer but does not take ownership of those goods until they are sold.