1. A current warehouse system has five warehouses with 4,000 units at each warehouse. The company desires to change to three warehouses to become more centralized and keep the same customer service levels. Determine the average warehouse inventory levels, using the square root rule. (Choose the closest answer.)

A. 6667

B. 11619

C. 15492

D. 25820

2. Which of the following is NOT considered a best practice in warehouse design and layout?

A. Full cube utilization

B. Wide aisles

C. Straight line flow

D. Multi story facility

3. The most used items, the best sellers or the most urgent to obtain in case of necessity ('A items') should be placed in the most accessible zone of the warehouse in order to minimize ___________

A. cost of inventory depreciation

B. load distance

C. pilferage

D. the amount of inventory

4. Methods for establishing a customer service policy are

A. all of the above

B. Determining channel service levels based on knowledge of consumer reactions to stockouts

C. Analyzing cost/revenue trade-offs.

D. Conducting a customer service audit

5. A firm should offer good customer service for all of the following reasons except:

A. The average disgruntled customer tells at least 8 to 10 people about the unpleasant experience thus hampering future prospects.

B. Good service, which includes good human relations, is the main reason for repeat business.

C. Customer service is a mandatory requirement on all products and services offered in the country.

D. The cost of finding a new customer is considerably greater than the cost of keeping one you already have