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?
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A
Stop using pallets
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B
Install a mezzanine floor
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C
Increase the size of the aisles
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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
Discussion
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