CLTD practice question 1 of 25
Which of the following statements best describes the primary objective of most warehouses'?
Full set: 150 questionsThe primary objective of a modern warehouse or distribution center is to support the efficient flow of goods through the supply chain. This involves more than just static storage; it encompasses a range of value-adding activities like receiving, cross-docking, order picking, consolidation, and shipping. The goal is to facilitate the continuous and timely movement of products to meet customer demand, effectively acting as a dynamic link between producers and consumers rather than a long-term storage facility.
A. Provide additional storage to excess inventory and avoid its disposal: This describes an outdated and inefficient function. The goal of modern logistics is to minimize excess inventory, not build facilities for it.
B. Ensure that inventory levels are in accordance with the company's financial target: This is an inventory management or finance function's objective. The warehouse executes tasks based on these targets but does not set them.
C. Accurately reflect the company's working capital status: This is an accounting function. While accurate inventory data from the warehouse is a critical input, it is not the warehouse's primary operational objective.
1. APICS CLTD Learning System 2023, Module 2, Section B, Chapter 1, Topic 1. This topic explicitly states that the role of warehousing has evolved from simple storage to facilitating the movement of goods and materials through the supply chain.
2. Bartholdi, J. J., & Hackman, S. T. (2019). Warehouse & Distribution Science. Georgia Institute of Technology. Chapter 1 states, "The fundamental purpose of a warehouse is to facilitate the movement of goods." (p. 1). Available via http://www.warehouse-science.com/.
Keep practicing
Take the free CLTD practice test
Ten exam-style questions with answers and explanations, plus the exam facts and study guides.
More questions
Other CLTD practice questions
- Question 2A pharmaceutical company makes drugs that control the spread of the influenza virus after…
- Question 3Consignment inventory requires that manufacturers
- Question 4A corporation is redesigning its warehouse and has decided to use a rack system that allo…
- Question 5A company would like to encourage shippers to partner on sustainability initiatives Which…
- Question 6A non-profit transportation membership cooperative that arranges for the domestic or inte…
- Question 7A third-party logistics (3PL) provider is seeking to market its value-added warehousing s…
