CLP Inventory Control & Warehousing 2

Question 1

Which inventory replenishment method triggers an order when stock falls to a predetermined minimum level?

Accepted Answer

Continuous review (reorder point) system

Answer

A continuous review system monitors inventory continuously and places an order when stock reaches the reorder point.

Question 2

A warehouse uses 'zone picking' to fulfill orders. What is the primary benefit of this strategy?

Accepted Answer

Minimizes picker travel distance within assigned zones

Answer

Zone picking assigns pickers to specific areas, reducing travel time and increasing throughput.

Question 3

What does the term 'safety stock' represent in inventory management?

Accepted Answer

Extra inventory held to buffer against demand or lead-time variability

Answer

Safety stock is buffer inventory maintained to protect against unexpected demand spikes or supply delays.

Question 4

Which storage method maximizes vertical space utilization in a warehouse?

Accepted Answer

High-bay narrow-aisle racking

Answer

High-bay narrow-aisle racking uses vertical height and specialized lift trucks to maximize cubic storage capacity.

Question 5

An ABC analysis categorizes inventory items primarily by:

Accepted Answer

Annual consumption value

Answer

ABC analysis ranks items by annual consumption value so high-value (A) items receive tighter control.

(CLP) Certified Logistics Professional Practice Test