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A company finds that one of its warehouses is out of capacity to store products. Expanding the physical size of the warehouse is not an option. The most appropriate solution would be to increase the:
The purpose of price differentiation is to:
In a make-or-buy decision, if the product is modular and the company is dependent on knowledge and capacity, outsourcing most likely will be:
A company's annual cost of goods sold is $350 million, and inventory carrying cost is 18%. The company averages four inventory turns. The cost savings resulting from increasing inventory turns from four to six would be:
For an item with high profit impact and low supply risk, what would be a likely procurement strategy to support the overall supply strategy?
Supply chains delivering products or services are most able to respond quickly to changing market requirements when:
Throughout most of the supply chain, safety stock will be de-emphasized as a result of improved:
The primary risk associated with outsourcing innovative components to suppliers is:
The practice of supply chain members acting in close collaboration while retaining independent ownership is known as:
A company considers moving a portion of its production to a distant country to support a major customer. Which of the following actions is most effective in mitigating the risk of financial loss in the event of a global economic downturn?

Question 249 - CSCP discussion

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Which of the following statements about warehouse layout and storage is correct?

A.
Product weight is the major factor driving warehouse layout.
Answers
A.
Product weight is the major factor driving warehouse layout.
B.
Products with low volume are typically placed at the lower level in storage racks.
Answers
B.
Products with low volume are typically placed at the lower level in storage racks.
C.
Warehouses that utilize fixed locations storage typically minimize space requirements.
Answers
C.
Warehouses that utilize fixed locations storage typically minimize space requirements.
D.
A typical warehouse is engaged in a combination of short term and extended storage alternatives.
Answers
D.
A typical warehouse is engaged in a combination of short term and extended storage alternatives.
Suggested answer: D

Explanation:

Warehouse layout and storage practices are designed to accommodate various operational needs. Here's why option D is correct:

Mixed Storage Needs: Warehouses typically handle both short-term (transit storage for immediate distribution) and long-term (extended storage for stockpiling) requirements.

Space Optimization: Effective warehouse management balances these needs to optimize space utilization and ensure efficient handling of goods.

Product Turnover: High turnover items may require quick access and thus short-term storage, while slower-moving items may be stored for extended periods.

Flexibility: Warehouses must remain flexible to adapt to changing inventory levels, seasonal demands, and other variables that affect storage duration.

Frazelle, E. (2002). World-Class Warehousing and Material Handling. McGraw-Hill.

Richards, G. (2017). Warehouse Management: A Complete Guide to Improving Efficiency and Minimizing Costs in the Modern Warehouse. Kogan Page.

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asked 16/09/2024
Nestor Quintero
40 questions
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