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MSSC CLT EXAM TERMS
QUESTIONS & 100% CORRECT ANSWERS
"Packaging - CORRECT ANSWER The process of using materials to contain and protect a
product during handling, storage and shipping."
"Reportable Quantity (RQ) - CORRECT ANSWER The minimum quantity of a hazardous
substance which, if released, is required to be reported."
"Reverse logistics - CORRECT ANSWER A complete supply chain dedicated to the reverse flow
of products and materials for the purpose of returns, repair, remanufacture and/or recycling."
"Variable costs - CORRECT ANSWER An operating cost that varies directly with a change of
one unit in the production volume (e.g. direct materials consumed, sales commissions)."
"Vertical lift module (VLM) - CORRECT ANSWER Automated storage and retrieval system that
moves units or items between levels in a facility."
"Warehouse management system (WMS) - CORRECT ANSWER A system that manages all
processes that a warehouse carries out. These processes include receiving, picking, and shipping."
"Batch pick - CORRECT ANSWER A method of picking orders in which order requirements are
aggregated by product across orders to reduce movement to and from product locations. The aggregated quantities of each product are then transported to a common area where the individual orders are constructed."
"Basic Description - CORRECT ANSWER Required description on documentation when
shipping or handling hazmats. It must include: the Identification Number; Proper Shipping Name; Hazard Class or Division; and Packing Group."
"Bill of lading - CORRECT ANSWER A carrier's contract and receipt for goods the carrier agrees
to transport from one place to another and to deliver to a designated person. In case of loss, damage, or delay, the bill of lading is the basis for filing freight claims."
"Bonding - CORRECT ANSWER A system that connects various pieces of conductive
equipment together to keep them at the same potential. Static sparking cannot take place between objects that are the same potential."
"Cantilever rack - CORRECT ANSWER A specialized form of rack used for storing long items
such as lumber or pipes."
"Carrier freight bill - CORRECT ANSWER An invoice presented by the carrier to the shipper, the
consignee or a referenced third-party as a demand for payment for services rendered."
"Certificate of origin - CORRECT ANSWER A document attesting to a shipment's country of
origin."
"Common carriers - CORRECT ANSWER Transportation available to the public that does not
provide special treatment to any one party and is regulated as to the rates charged, the liability assumed, and the service provided. A common carrier must obtain a certificate of public convenience and necessity from the Federal Trade Commission for interstate traffic."
"Consignee - CORRECT ANSWER The receiver of shipment of freight; the customer."
"Containerization - CORRECT ANSWER A shipment method in which commodities are placed
in containers, and after initial loading, the commodities per se are not re-handled in shipment until they are unloaded at the destination."
"Contract carriers - CORRECT ANSWER A carrier that does not serve the general public, but
provides transportation for hire for one or a limited number of shippers under a specific contract."
"Automated storage/retrieval system (AS/RS) - CORRECT ANSWER A high-density, rack
inventory storage system with vehicles automatically loading and unloading the racks."
"Decoupling - CORRECT ANSWER Creating independence between supply and use of material.
Commonly denotes providing inventory between operations so that fluctuations in the production rate of the supplying operation do not constrain production or use rates of the next operation."
"Delivery receipt - CORRECT ANSWER A document issued by the carrier that the consignee
signs as proof of receipt."
"Material requirements planning (MRP) - CORRECT ANSWER A set of techniques that uses bill
of material data, inventory data, and the master production schedule to calculate requirements for materials. It makes recommendations to release replenishment orders for material."
"Order - CORRECT ANSWER A general term that may refer to such diverse items as a purchase
order, shop order, customer order, planned order, or schedule."
"Order processing - CORRECT ANSWER The activity required to administratively process a
customer's order and make it ready for shipment or production."
"Oxidizer - CORRECT ANSWER A substance that oxidizes another substance, especially one
that supports the combustion of fuel; an oxidizing agent."
"Shipping manifest - CORRECT ANSWER A document that lists the pieces in a shipment. It
usually list the items, piece count, total weight, and the destination name and address for each destination in the load."
"Shipping order - CORRECT ANSWER A document which specifies the products to be shipped,
customer information and the mode of transport."
"Staging Area - CORRECT ANSWER Location in a facility where materials are organized. Newly
received items can be staged before being placed in a final storage destination or into another container for transport. Inventory items may also be staged before being organized into orders for container loading."
"Staging - CORRECT ANSWER Pulling material for an order from inventory before the material
is required. This action is often taken to identify shortages, but it can lead to increased problems in availability and inventory accuracy."
"Stock keeping unit (SKU) - CORRECT ANSWER An inventory item. For example, a shirt in six
colors and five sizes would represent 30 different SKUs."
"Tariff - CORRECT ANSWER An official schedule of taxes and fees imposed by a country on
imports or exports and/or a tax."
"Unitization - CORRECT ANSWER In warehousing, the consolidation of several units into larger
units for fewer handlings."
"Work-in-process (WIP) - CORRECT ANSWER A good or goods in various stages of completion
throughout the plant, including all material from raw material that has been released for initial processing up to completely processed material awaiting final inspection and acceptance as finished goods inventory. Many accounting systems also include the value of semi-finished stock and components in this category."
"Yard - CORRECT ANSWER The outdoor area around a dock; can refer to a shipping yard; rail
yard or truck yard."
"Zone pick - CORRECT ANSWER A method of subdividing a picking list by areas within a
storeroom for more efficient and rapid order picking. A zone-picked order must be grouped to a single location before delivery or must be delivered to different locations, such as work centers."
“Airway bill - CORRECT ANSWER A bill of lading for air transport that serves as a receipt for the
shipper, indicates that the carrier has accepted the goods listed, obligates the carrier to carry the consignment to the airport of destination according to specified conditions."
"Advanced ship notice (ASN) - CORRECT ANSWER An electronic data interchange (EDI)
notification of shipment of product."
"Aggregate inventory management - CORRECT ANSWER Establishing the overall level (dollar
value) of inventory desired and implementing controls to achieve this goal."
"Corrosives - CORRECT ANSWER Materials that can attack and chemically destroy exposed
body tissues. Corrosives can also damage or even destroy metal. They begin to cause damage as soon as they touch the skin, eyes, respiratory tract, digestive tract, or the metal."
"Cross-docking - CORRECT ANSWER The concept of packing products on the incoming
shipments so they can be easily sorted at intermediate warehouses or for outgoing shipments based on final destination. The items are carried from the incoming vehicle docking point to the outgoing vehicle docking point without being stored in inventory at the warehouse."
"Cycle count - CORRECT ANSWER An inventory accuracy audit technique where inventory is
counted on a cyclic schedule rather than once a year."
"Freight forwarders - CORRECT ANSWER The 'middle man' between the carrier and the
organization shipping the product. Often combines smaller shipments to take advantage of lower bulk costs."
"Full truckload (FTL) - CORRECT ANSWER When the load from one customer fills up the whole
truck."
"Receiving - CORRECT ANSWER The function encompassing the physical receipt of material,
the inspection of the shipment for conformance with the purchase order (quantity and damage), the identification and delivery to destination, and the preparation of receiving reports."
