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Question 133 - CSCP discussion

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What is the primary benefit of using a central storage warehouse for all components rather than using point-of-use storage?

A.
Reduced need for bar codes and radio frequency identification technology
Answers
A.
Reduced need for bar codes and radio frequency identification technology
B.
Reduced material handling costs
Answers
B.
Reduced material handling costs
C.
Ease of control and count accuracy
Answers
C.
Ease of control and count accuracy
D.
Maintain a cleaner shop floor
Answers
D.
Maintain a cleaner shop floor
Suggested answer: C

Explanation:

The primary benefit of using a central storage warehouse for all components rather than point-of-use storage is the ease of control and count accuracy. Central storage allows for more efficient inventory management, as all components are stored in a single, controlled location. This centralization simplifies inventory tracking, reduces errors, and improves count accuracy because inventory can be managed and monitored consistently. Additionally, central storage can facilitate better inventory optimization and forecasting.

Reference:

'Warehouse & Distribution Science' by John Bartholdi and Steven Hackman

'The Handbook of Logistics and Distribution Management' by Alan Rushton, Phil Croucher, and Peter Baker

asked 16/09/2024
HAO KANG SUNG
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