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Question 432 - CSCP discussion

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Which of the following criteria is the primary factor when considering storage locations for high volume products?

A.
Seasonality
Answers
A.
Seasonality
B.
Quality
Answers
B.
Quality
C.
Velocity
Answers
C.
Velocity
D.
Perishability
Answers
D.
Perishability
Suggested answer: C

Explanation:

When considering storage locations for high volume products, the primary factor is velocity, which refers to the speed at which inventory moves through the supply chain. High-velocity products are those that are sold and restocked frequently, so their storage locations should be optimized to ensure quick and efficient handling and transportation. This minimizes handling time and costs, reduces stockouts, and improves overall supply chain efficiency. Storage locations should be strategically chosen to support fast turnover and easy access to these high-demand products.

Reference: Lambert, D. M., & Cooper, M. C. (2000). Issues in Supply Chain Management, Industrial Marketing Management.

asked 16/09/2024
Mathias Bergman
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