CPIM Practice Exam

What is cross-docking?

1. A method of storing goods for long periods

2. A process of packing products for efficient sorting

3. A strategy for handling returns

4. A way to increase manufacturing efficiency

The correct answer is: A process of packing products for efficient sorting

Cross-docking refers to a logistics practice that involves the immediate transfer of products from receiving to shipping with minimal or no storage time in between. Specifically, option B accurately describes cross-docking as a process of packing products for efficient sorting, which allows for a streamlined operation where goods arrive at a distribution center and are directly sorted and packed for outbound delivery. This method reduces handling and storage time, thus enhancing the efficiency of the supply chain. In contrast, storing goods for long periods does not align with the principles of cross-docking, as it is characterized by quick turnover rather than prolonged storage. Handling returns is a distinct process often managed separately from cross-docking, as it focuses on processing products that are sent back rather than distributing new inventories. Similarly, while increasing manufacturing efficiency is a broader operational goal, it does not specifically define what cross-docking entails, which centers around logistics and distribution rather than production processes.