CIPS Level 4 Whole Life Asset Management L4M7 · Free Practice Question Medium

Question 18

Brett's warehouse is becoming more busy with a lot of items in and out. The racks almost reach their capacity. Brett suggests senior management to build a new warehouse nearby but it will not be available for 6 months. What can Brett do to improve the current warehouse capacity?

  • A

    Stop using pallets

  • B

    Install a mezzanine floor

  • C

    Increase the size of the aisles

  • D

    Use single-deep rack

Reveal correct answer

Correct answer: B

Explanation

The major concern of this question is about improving warehouse capacity temporarily. some possible ways to improve warehouse capacity temporarily are:

  • Reduce aisle space by using narrow-aisle forklifts or automated storage and retrieval systems (AS/RS).

  • Maximize your vertical space by using taller racks, mezzanine floors, or modular buildings.

  • Consider cross-docking to reduce the need for storage space by transferring goods directly from inbound to outbound trucks.

  • Modify your warehouse planogram to optimize the placement and arrangement of products based on their demand and size.

  • Liquidate slow moving and obsolete inventory to free up space and cash.

As you see, among the options, "Install a mezzanine floor" can improve the capacity for a short time.

LO 1, AC 1.1

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