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FE · 9% of the exam

Facilities and Supply Chain practice questions

10 free Facilities and Supply Chain questions for the FE Industrial and Systems Exam (FE) exam, each with the correct answer and an explanation for every option.

What this domain covers

Where things go and how they move: facility layout, location, material handling, capacity and supply chain design.

Exam weight
9%
On a real exam
≈ 10 questions
In our bank
54 questions

Topics that come up most

  • Layout types and from-to charts
  • Rectilinear and Euclidean distance measures
  • Single and multiple facility location
  • Material handling and process capacity
  • Supply chain design and distribution

How to study it

Practise the single-facility location problem with rectilinear distance using the median method; it is quick to do and appears often.

Sample Facilities and Supply Chain questions

Try each one before opening the answer. Original questions written to the official exam objectives.

  1. Question 1

    A distributor moves from frequent less-than-truckload (LTL) shipments to less frequent full-truckload (FTL) shipments of the same product. Compared with LTL, this change usually:

    • ALowers the transportation cost per unit shipped
    • BLowers the average cycle inventory at the destination
    • CShortens the average time between replenishments
    • DRaises the transportation cost per unit shipped
    Show answer and explanation

    Answer: A) Lowers the transportation cost per unit shipped

    Full truckloads spread fixed trip costs over more units, which lowers freight cost per unit. The trade-off is larger shipment quantities, which mean higher cycle inventory and less frequent replenishment.

    • ACorrect. Each trip has largely fixed costs (driver, truck, dispatch). A full load spreads those costs over more units, so the freight cost per unit goes down.
    • BIncorrect. Larger, less frequent shipments raise the order quantity. Average cycle inventory is about Q/2, so it goes up, not down. This is the main trade-off against the freight savings.
    • CIncorrect. Waiting to fill a whole truck means shipments go out less often, so the time between replenishments gets longer.
    • DIncorrect. This is backwards. Full truckloads use the vehicle's capacity better and usually cost less per unit than LTL.
  2. Question 2

    Which statement best describes how a hub-and-spoke distribution network moves freight?

    • AFreight from many origins is consolidated at a central hub, re-sorted, and sent outbound in fuller loads
    • BEach shipment travels directly from its origin to its destination without intermediate handling
    • CA single vehicle follows a fixed loop, picking up or delivering at several stops in sequence
    • DInventory is held in many local warehouses, each replenished and serving only its own market
    Show answer and explanation

    Answer: A) Freight from many origins is consolidated at a central hub, re-sorted, and sent outbound in fuller loads

    A hub-and-spoke network sends shipments through central hubs where freight is consolidated and re-sorted. This gives better load utilization at the cost of extra handling and possibly longer routes.

    • ACorrect. Routing through hubs combines small shipments into fuller loads on the trunk lanes, which improves vehicle utilization. The trade-off is extra handling and sometimes longer total routes.
    • BIncorrect. This describes direct (point-to-point) shipping. It avoids handling at a hub but often leads to partial, poorly utilized loads.
    • CIncorrect. This describes a milk run, which consolidates freight on the vehicle route rather than at a central sorting facility.
    • DIncorrect. This describes a decentralized storage network. It does not route flows through central consolidation hubs.
  3. Question 3

    Daily trips between departments are A–B: 20, A–C: 10 and B–C: 30. Layout X places the pairs 10 m, 20 m and 15 m apart (A–B, A–C, B–C). Layout Y places them 15 m, 10 m and 10 m apart. Using the load-distance criterion, which layout is preferred and what is its score?

    • ALayout X, with a load-distance total of 850 trip-m
    • BLayout Y, with a load-distance total of 700 trip-m
    • CLayout Y, with a load-distance total of 35 m
    • DNeither; both layouts tie because each handles 60 trips
    Show answer and explanation

    Answer: B) Layout Y, with a load-distance total of 700 trip-m

    Multiply each pair's trips by its distance and add the products. The layout with the lower total (Y at 700 versus X at 850) needs less material handling.

    • AIncorrect. Layout X does score 20(10)+10(20)+30(15)=850, but a higher load-distance total means more material travel, so X is worse.
    • BCorrect. 20(15)+10(10)+30(10)=700, which is lower than Layout X's 850, so Y needs less material handling.
    • CIncorrect. 35 m is just the sum of Y's distances. The load-distance score must weight each distance by its number of trips.
    • DIncorrect. The trip count is the same for both layouts. What differs is the distance each load travels, so the weighted totals differ.
  4. Question 4

    The Clarke–Wright savings method is used for:

    • AVehicle routing
    • BLine balancing
    • CForecasting demand
    • DSetting control limits
    Show answer and explanation

    Answer: A) Vehicle routing

    • ACorrect. It merges routes with the largest savings.
    • BIncorrect. That uses other heuristics.
    • CIncorrect. That isn't its use.
    • DIncorrect. That's SPC.
  5. Question 5

    Conveyors are generally preferred over forklifts for:

    • AMoving very large single items irregularly
    • BOccasional moves along varying routes
    • CHigh-volume movement along a fixed path
    • DOutdoor yard storage
    Show answer and explanation

    Answer: C) High-volume movement along a fixed path

    • AIncorrect. That suits cranes or forklifts.
    • BIncorrect. That suits forklifts.
    • CCorrect. Forklifts suit variable paths.
    • DIncorrect. They suit fixed, high-volume paths.
  6. Question 6

    Automated guided vehicles (AGVs) are best suited to:

    • AVariable-path material movement without fixed conveyors
    • BFixed, continuous high-volume flow only
    • CLifting loads vertically only
    • DStoring goods long-term
    Show answer and explanation

    Answer: A) Variable-path material movement without fixed conveyors

    • ACorrect. They follow programmable routes.
    • BIncorrect. That suits conveyors.
    • CIncorrect. They move horizontally.
    • DIncorrect. They move materials.
  7. Question 7

    A department will hold 12 machines, and each needs 20 m² of floor space. An extra 40% of the machine area is added for aisles. What is the total floor area required?

    • A336 m²
    • B240 m²
    • C288 m²
    • D96 m²
    Show answer and explanation

    Answer: A) 336 m²

    Total area = machine area × (1 + allowance) = 240 m² × 1.4 = 336 m².

    • ACorrect. Machine area = 12 × 20 = 240 m². Adding 40% for aisles gives 240 × 1.4 = 336 m².
    • BIncorrect. This is only the machine area. It leaves out the 40% aisle allowance.
    • CIncorrect. This uses a 20% allowance (240 × 1.2) instead of 40%.
    • DIncorrect. This is just the aisle allowance (0.4 × 240), not the total area.
  8. Question 8

    When balancing an assembly line with the ranked positional weight (RPW) heuristic, tasks are prioritized for assignment to stations (subject to precedence and cycle time) in which order?

    • AShortest individual task time first
    • BLongest individual task time first
    • CGreatest number of following tasks first
    • DLargest sum of own time plus all successor times first
    Show answer and explanation

    Answer: D) Largest sum of own time plus all successor times first

    The RPW heuristic gives each task a weight equal to its own time plus the times of all its successors. It then assigns tasks in descending order of weight, as long as precedence and cycle time allow.

    • AIncorrect. RPW does not rank tasks by their own time in ascending order. Ranking shortest-first tends to leave the long tasks for later stations, where they are hard to fit.
    • BIncorrect. This is the largest-candidate (longest task time) rule. It looks only at a task's own time and ignores the work that follows it.
    • CIncorrect. This is the most-followers rule. It counts successors but does not add up their times.
    • DCorrect. In RPW, a task's positional weight is its own time plus the times of every task that follows it. Tasks are ranked by this weight in descending order and assigned in that order.
  9. Question 9

    A warehouse will serve customers at x = 0 (weight 1) and x = 10 (weight 3) along a line. The center-of-gravity location is:

    • Ax = 5.0
    • Bx = 7.5
    • Cx = 10
    • Dx = 3.0
    Show answer and explanation

    Answer: B) x = 7.5

    • AIncorrect. Weight by demand.
    • BCorrect. (0 × 1 + 10 × 3)/4.
    • CIncorrect. Use the weighted average.
    • DIncorrect. Divide by total weight, 4.
  10. Question 10

    A process needs 4,000 machine-hours per year. Each machine provides 2,000 hours at 80% efficiency. The number of machines needed is:

    • A5
    • B2
    • C2.5
    • D3
    Show answer and explanation

    Answer: D) 3

    • AIncorrect. Recheck: 4,000/1,600.
    • BIncorrect. Account for efficiency and round up.
    • CIncorrect. Machines come in whole numbers.
    • DCorrect. 4,000/(2,000 × 0.8) = 2.5, rounded up.

Facilities and Supply Chain: FAQs

How much of the FE exam is Facilities and Supply Chain?

Facilities and Supply Chain is 9% of the FE exam by the official exam guide's weighting, which on a 110-question form works out to roughly 10 questions. The real exam's exact split varies by form.

What does the Facilities and Supply Chain domain cover?

Where things go and how they move: facility layout, location, material handling, capacity and supply chain design.

How should I study Facilities and Supply Chain for FE?

Practise the single-facility location problem with rectilinear distance using the median method; it is quick to do and appears often.

Where can I practise more Facilities and Supply Chain questions?

This page has 10 free Facilities and Supply Chain questions with answers. The ExamWize FE question bank has 54 questions in this domain. Every practice exam result breaks your score down by domain, and Review Mode re-drills the questions you missed.

Get Facilities and Supply Chain exam-ready

The full FE bank has 54 Facilities and Supply Chain questions. Timed practice exams match the real exam's length and domain weights, every result shows your score per domain, and Review Mode re-drills the questions you missed.

Not affiliated with NCEES; questions are original, written from the official exam outline, and never copied from the real exam.