Which of the following statements about cross-docking is NOT correct?
A)Cross-docking is packing products on incoming shipments so they can be easily sorted for outgoing shipments based on their final destination.
B)Cross-docking reduces inventory and storage space requirements,but handling costs and lead times tend to increase.
C)Items are moved from incoming vehicles to outgoing vehicles without being stored in warehouse inventory.
D)Inbound and outbound shipments must be tightly coordinated for cross-docking to work.

Question

Quizplus · Accepted Answer

Cross-docking is a process that reduces inventory and storage space requirements by minimizing the time products spend in a warehouse. It involves moving items from inbound vehicles to outbound vehicles without being stored in warehouse inventory. Tight coordination between inbound and outbound shipments is essential for cross-docking to work. Although cross-docking can increase handling costs and lead times, it is generally considered a cost-effective strategy for companies that need to improve their supply chain efficiency. Therefore, statement B is incorrect.

Which of the Following Statements About Cross-Docking Is NOT Correct