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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:
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The practice of supply chain members acting in close collaboration while retaining independent ownership is known as:
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Question 453 - CSCP discussion

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A large retailer would like to reduce inventory investment in its distribution network. Which of the following actions is most likely to produce the desired result in the shortest time?

A.
Implementing break-bulk
Answers
A.
Implementing break-bulk
B.
Forming strategic alliances
Answers
B.
Forming strategic alliances
C.
Implementing cross-docking
Answers
C.
Implementing cross-docking
D.
Utilizing third-party logistics (3PL) providers
Answers
D.
Utilizing third-party logistics (3PL) providers
Suggested answer: C

Explanation:

Cross-docking reduces inventory investment by minimizing the time goods spend in storage. Instead of holding inventory in a distribution center, products are directly transferred from inbound to outbound transportation with little to no storage time. This approach improves inventory turnover, reduces storage costs, and ensures a more efficient flow of goods through the distribution network, leading to faster fulfillment times and reduced inventory levels.

Reference:

'Cross-Docking: A Supply Chain Strategy,' Logistics Bureau.

'The Benefits of Cross-Docking in Supply Chain Management,' Supply Chain 24/7.

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asked 16/09/2024
Jim Balkwill
44 questions
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