20 Receiving, Storage & Inventory Control Practice Questions & Answers
Every Receiving, Storage & Inventory Control practice question from the Logistics Technician Practice Test, with the correct answer and a short explanation.
Start practice test →1. Which shipping document serves as the carrier's receipt to the shipper, the contract of carriage, and evidence of who holds title to the freight?
- A.The packing list that itemizes each carton's contents
- B.The bill of lading that accompanies the shipment✓ Answer
- C.The carrier freight bill that invoices transport charges
- D.The purchase order that authorizes the buyer's order
The bill of lading has three distinct legal functions at once: it is the carrier's receipt for goods accepted for transport, it is the contract of carriage that sets the terms of the move, and it raises a presumption of title to the freight. The packing list only itemizes contents, the purchase order only authorizes the buy, and the freight bill is simply the carrier's invoice.
Source: MSSC Certified Logistics Technician standards, Product Receiving key work activities (bill of lading functions)Report a problem with this question
2. A pallet arrives at the receiving dock. The purchase order authorizes 10 cases of an item, the supplier's packing list shows 12 cases, and the physical count is 12 cases. What is the correct receiving action?
- A.Refuse the whole delivery because the papers do not match the order
- B.Change the purchase order to 12 so the system matches the delivery
- C.Record an overage and hold the extra cases pending direction from the buyer✓ Answer
- D.Store all 12 cases because the packing list and the count agree
The purchase order is the buyer's authorization and therefore the count of record; material received above it is an overage, not an approved receipt. The extra cases are documented on the discrepancy paperwork and segregated until purchasing decides to accept, return or bill them, because putting unauthorized stock away creates an inventory and payment liability.
Source: MSSC Certified Logistics Technician standards, Product Receiving (verify documents against product delivered)Report a problem with this question
3. The seal number on an arriving trailer does not match the seal number recorded on the bill of lading. What must the receiver do?
- A.Accept the load if the piece count matches the bill of lading and then correct the seal number
- B.Break the seal with the driver present and begin unloading, since the driver can vouch
- C.Stop the unloading process and notify supervision or security before the trailer is opened✓ Answer
- D.Unload and count first, then note the seal difference on the discrepancy report
A seal number that does not match the bill of lading means the trailer's chain of custody is broken and the load may have been entered in transit, so it is a security exception rather than a paperwork error. Opening the trailer destroys the evidence and weakens any later claim, so the receiver stops and escalates under the facility's written procedure before the seal is broken.
Source: MSSC Certified Logistics Technician standards, Product Receiving (inspect seals and trailer number before unloading)Report a problem with this question
4. A trainee writes the receiving sequence as: secure the truck at the dock, verify and break the seal with the driver present, unload the material, put the material away in its assigned slot, stage the material for the count and final inspection. Which step is out of sequence?
- A.Verifying the seal is listed before unloading; unloading should come first
- B.Putting away is listed before the count; the count and inspection come first✓ Answer
- C.Unloading is listed before putting away; putting away should come first
- D.Securing the truck is listed before verifying the seal; the seal should be checked first
Unloaded freight is staged so quantity and condition can be verified while the carrier's responsibility is still open; only material that passes that check is positioned in its assigned storage location. Putting stock away before it is counted and inspected pushes damaged or short product into available inventory, where the discrepancy can no longer be traced to the inbound load.
Source: MSSC Certified Logistics Technician curriculum, receiving process sequenceReport a problem with this question
5. While unloading, a receiver finds several crushed cartons and the driver is still at the dock. What should the receiver do before signing the delivery receipt?
- A.Record the delivery as clean and set the damaged cartons aside for inspection later
- B.Record the damage in an internal report after the driver has left and file the claim later
- C.Record the damage as an exception on the delivery receipt and have the driver initial it✓ Answer
- D.Record the damage only if the carrier's inspector confirms it at the dock first
Damage found while the freight is still being unloaded is visible damage, and the delivery receipt is the document that fixes the condition of the goods at the moment custody transfers. Noting the exception and having the driver acknowledge it creates the contemporaneous record a freight claim rests on; an internal report written afterward carries far less weight.
Source: MSSC Certified Logistics Technician standards, Product Receiving (check for overage, shortage and damage)Report a problem with this question
6. What does signing a delivery receipt clear, with no exceptions noted, mean for the receiving company?
- A.It confirms the goods arrived complete and in good order, weakening a later claim✓ Answer
- B.It confirms only that the trailer arrived, and claims may still be filed for shortage
- C.It starts a grace period in which the receiver may still change the receipt afterward
- D.It transfers title to the carrier until the discrepancy report is processed and closed
A clear signature is the receiver's written statement that the count and condition matched the paperwork at the point of transfer, so the carrier's liability for anything visible ends there. That is why every shortage, overage or visible damage must be written on the receipt before it is signed rather than reported afterward.
Source: MSSC Certified Logistics Technician standards, Product Receiving (proof of delivery and inbound discrepancy reports)Report a problem with this question
7. Two days after a delivery, a worker opens a sealed carton and finds the contents broken, although the outside of the carton looked sound at receipt. What should the facility do about this concealed damage?
- A.Bill the supplier automatically, since concealed damage is always the shipper's fault
- B.Repack the item, return it to stock, and adjust the count at the next cycle count
- C.Absorb the loss, because a signed delivery receipt ends every right to file a claim
- D.Report it to the carrier promptly and retain the carton and its packing material✓ Answer
Concealed damage cannot be noted at the dock because it is not visible until the package is opened, so the claim depends on reporting it quickly and preserving the carton, dunnage and contents exactly as found for the carrier's inspection. Repacking or returning the item to sellable stock destroys the evidence and the claim with it.
Source: MSSC Certified Logistics Technician standards, Product Receiving (accurately identify damaged product)Report a problem with this question
8. A pallet arrives that is already committed to an order shipping the same day, and the supervisor sends it straight from the receiving dock to the outbound staging lane. What is this practice called, and what is its main benefit?
- A.Consolidating; it merges several small shipments into one larger load for the carrier
- B.Slotting; it places the pallet in the location that best matches its movement velocity
- C.Cross-docking; it removes the putaway and picking steps and shortens dwell time✓ Answer
- D.Staging; it holds the pallet in a marked area until the count and inspection are done
Cross-docking routes freight from the inbound door to the outbound door without ever entering a storage location, so two full touches, putaway and picking, disappear along with the storage space and the time the goods would have sat. It only works when the receipt is already matched to a known outbound order.
Source: MSSC Certified Logistics Technician standards, Product Storage (determining destination and direction of unloaded material)Report a problem with this question
9. A distribution center stores a dated, perishable product in pallet quantities and must move the oldest pallets first. Which storage system enforces that rotation by its design?
- A.Block stacking on the floor, with pallets placed in rows several deep
- B.Pallet flow rack, loaded at one end and unloaded from the opposite end✓ Answer
- C.Drive-in rack, loaded and unloaded through a single entry face
- D.Push-back rack, where pallets roll forward toward the same face used to load
Pallet flow rack is loaded at the back and picked at the front, so the first pallet in is physically the first one available and first-in, first-out is enforced by the equipment rather than by operator discipline. Drive-in, push-back and deep block stacking are all loaded and unloaded from the same face, which naturally yields last-in, first-out.
Source: MSSC Certified Logistics Technician standards, Product Storage (options for storage; FIFO and LIFO techniques)Report a problem with this question
10. When slotting products in a warehouse, which arrangement best reduces picker travel and handling risk?
- A.Items arranged strictly by part number, with the heaviest items placed on top levels
- B.Fast-moving items on upper levels, with the heaviest items nearest the pick face
- C.Items arranged by supplier name, with the heaviest items kept farthest from the dock
- D.Fast-moving items near the shipping dock, with the heaviest items on lower levels✓ Answer
Slotting by velocity puts the items picked most often on the shortest travel path, so a small share of the item count absorbs most of the trips and total travel drops sharply. Placing heavy items low keeps them out of overhead lifts and reduces both back strain and the chance of a load falling from height.
Source: MSSC Certified Logistics Technician standards, Product Storage (key issues affecting how materials are stored)Report a problem with this question
11. A warehouse location code identifies the aisle, bay, level and position of a slot. What is the main operational value of keeping that addressing scheme disciplined?
- A.It lets any worker or system direct a putaway or a pick to one unique slot✓ Answer
- B.It removes the need to scan or confirm the location when stock is put away
- C.It fixes the physical capacity of each slot regardless of the product stored
- D.It allows the same item number to be stored under several different slot codes
An address scheme works because each code resolves to exactly one physical place, so the system can send a new worker straight to the stock without local knowledge and the location can be confirmed by scan. Random or dynamic slotting is only workable when that one-to-one link between code and place is maintained on every move.
Source: MSSC Certified Logistics Technician standards, Product Storage (stocking products in assigned locations)Report a problem with this question
12. Pallets are pulled from a bulk floor-stacked lane a few at a time, leaving partly empty lanes that cannot hold other items. What is this loss of usable cube called, and how is it reduced?
- A.Cube utilization; reduced by raising the stack height above the rated load limit
- B.Dunnage; reduced by filling the empty spaces with packing material and blocking
- C.Shrinkage; reduced by counting the bulk lanes more often than the rack locations
- D.Honeycombing; reduced by matching lane depth to the quantity stored per item✓ Answer
Honeycombing is the empty but unusable space left in a deep lane once part of a homogeneous stack has been removed, since mixing another item into that lane would block rotation and confuse the count. Sizing lane depth to the typical quantity held per item, and replenishing lanes only when they empty, keeps the wasted cube small.
Source: MSSC Certified Logistics Technician standards, Product Storage (forms and options for storage)Report a problem with this question
13. Compared with an annual wall-to-wall physical inventory, what is the main operational advantage of cycle counting?
- A.It counts every item in the building on the same day, so all records match at once
- B.It removes the need to reconcile any variance because the counts are taken more often
- C.It corrects errors continuously without shutting the operation down for a full count✓ Answer
- D.It replaces the need for a warehouse management system to track item locations
Cycle counting audits a small subset of locations on a repeating schedule while shipping and receiving continue, so accuracy is maintained all year instead of being restored once. Because the counted population is small and recent, the root cause of a variance can still be traced, which a single annual count rarely allows.
Source: MSSC Certified Logistics Technician standards, Inventory Control (methods for accurate inventory counting)Report a problem with this question
14. A facility classifies items as A, B and C. Class A is a small share of the item count but a large share of annual usage value. How should that classification drive counting?
- A.Count only the classes that had a variance last quarter and leave the others untouched
- B.Count A items most often and C items least often, because A carries the greatest exposure✓ Answer
- C.Count all three classes on the same schedule, because every stock record carries equal weight
- D.Count C items most often and A items least often, because there are many more C items
ABC analysis applies the principle that a minority of items accounts for most of the value or usage, so counting effort is spent where an error costs the most. Class A items get the tightest control and the most frequent counts, while the many low-value C items are verified far less often without putting much value at risk.
Source: MSSC Certified Logistics Technician standards, Inventory Control (ABC analysis and count frequency)Report a problem with this question
15. A cycle count finds 46 units on the shelf while the system shows 50. What is the correct next step?
- A.Ignore the difference until the annual physical inventory confirms the same result
- B.Adjust the shelf quantity to 50 by pulling units from the nearest overflow location
- C.Research the variance for mis-picks, unrecorded moves or receiving errors, then reconcile✓ Answer
- D.Adjust the system to 46 immediately so the record matches what is physically on hand
An adjustment made before the cause is found hides the problem: the four units may be sitting in an overflow slot, staged on an outbound order, mis-keyed at receipt or picked to the wrong order, and each of those is fixed differently. Research first, then reconcile the record to the verified physical quantity with the documentation and approval your facility's procedure requires.
Source: MSSC Certified Logistics Technician standards, Inventory Control (maintaining inventory accuracy)Report a problem with this question
16. What distinguishes a perpetual inventory system from a periodic one?
- A.A perpetual record changes with every transaction, while a periodic balance waits for a count✓ Answer
- B.A perpetual record is used only for class A items, while a periodic one covers class C
- C.A perpetual record is any computerized record, while a periodic one is kept on paper
- D.A perpetual record removes the need to count stock, while a periodic one requires it
The defining feature is when the balance is updated: a perpetual system posts every receipt, move, pick and adjustment as it happens, so an on-hand figure exists at any moment, while a periodic system only produces a reliable balance after a physical count. Being computerized does not make a system perpetual, and a perpetual system still needs counting to prove the record.
Source: MSSC Certified Logistics Technician standards, Inventory Control (common inventory control systems)Report a problem with this question
17. A system screen shows on-hand 100 and allocated 30 for an item. How many units are available to promise to a new order, and why?
- A.30, because only the allocated units have been confirmed as accurate by the system
- B.70, because allocated units are already committed to other orders and cannot be promised✓ Answer
- C.100, because the allocated units are still physically present in the location
- D.130, because the allocated units are on order and will be added to the balance soon
Available equals on-hand minus allocated, because allocated stock is physically present but already reserved for released orders and must be segregated rather than sold twice. Treating on-hand as available is what causes a picker to arrive at a full location and still come up short.
Source: MSSC Certified Logistics Technician standards, Inventory Control (material identification systems and inventory levels)Report a problem with this question
18. In warehouse operations, what does applying FIFO to a dated product mean?
- A.Stock is valued at the earliest purchase cost when the financial statements close
- B.The newest stock is picked first so the older pallets stay protected at the back
- C.Stock is picked from whichever location is closest to the pick face at that moment
- D.The oldest stock on hand is picked first, limiting spoilage and obsolescence✓ Answer
In logistics FIFO is a physical rotation rule, not an accounting valuation method: the oldest date code on hand leaves first so shelf life is consumed before it expires and seasonal or style-sensitive goods do not age out in the rack. The rack type chosen either enforces that rotation or leaves it to operator discipline.
Source: MSSC Certified Logistics Technician standards, Inventory Control (applying FIFO and LIFO techniques)Report a problem with this question
19. A customer return arrives at the dock with a return authorization number. What is the correct handling of the returned product?
- A.Store it with damaged stock until the customer's account has been credited in full
- B.Receive it into a segregated returns area, inspect it, and record its disposition and reason✓ Answer
- C.Scrap it on arrival, because returned goods can no longer be sold as new merchandise
- D.Return it directly to its normal pick slot so the available quantity is restored at once
Returned product has an unknown condition until someone looks at it, so it is received into a segregated area and dispositioned only after inspection: restock as sellable, repair or refurbish, return to the vendor, or scrap. Recording quantity, condition, reason code and disposition keeps available inventory honest and feeds the quality and vendor performance data that reverse logistics exists to capture.
Source: MSSC Certified Logistics Technician standards, Inventory Control (handling controls and records for returned product)Report a problem with this question
20. A supplier's lead time becomes longer and less predictable while demand stays the same. In which direction should the reorder point and safety stock move, and why?
- A.Both fall, because a longer lead time gives the buyer more time to place the order
- B.Both stay the same, because only a change in demand affects the reorder point
- C.Both rise only if the order quantity is reduced by the same proportion first
- D.Both rise, because more stock must cover demand during a longer, less certain wait✓ Answer
The reorder point is the level that must still cover demand throughout the replenishment lead time, so a longer wait requires triggering the order sooner, at a higher on-hand level. Safety stock buffers the variability around that lead time and demand, so less predictable delivery means a larger buffer is needed to hold the same protection against a stockout.
Source: MSSC Certified Logistics Technician standards, Inventory Control (optimizing inventory levels for overstock and understock)Report a problem with this question
Practice questions based on the MSSC national logistics standards and the published key work activities of the Certified Logistics Associate and Certified Logistics Technician assessments, together with federal general-industry safety requirements and standard warehouse and distribution practice. MSSC, CLA and CLT are marks of the Manufacturing Skills Standards Council; this site is not affiliated with or endorsed by MSSC. Questions here never depend on recalling a regulatory limit, a citation number or an equipment rating — always follow your own facility's written procedures and the data plate on the equipment you use, and confirm current requirements before testing. About the CLA and CLT certifications →