CIPS Level 4 Whole Life Asset Management L4M7 · Free Practice Question Medium
Question 4
20240523
Should all warehouses be located as close to the customers as possible?
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A
No, all warehouses should be located near the sources of supply
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B
No, it may not secure the best value for the warehouse
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C
Yes, it would reduce the time to deliver to the customers
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D
Yes, it is utmost important to maintain 1-hour delivery to every customer
Reveal correct answer
Correct answer: B
Explanation
The correct answer is No, it may not secure the best value for the warehouse.
Selecting a warehouse location should be based on multiple criteria, including infrastructure quality, proximity to supply sources and customers, workforce availability, land cost, and more. The objective is to establish a warehouse that maximizes value. A location too close to customers could be prohibitively expensive, raising transportation and land costs. Thus, the optimal approach for selecting a warehouse location involves considering various factors to ensure that the project captures the maximum value.
Reference: CIPS study guide page 5-11/ New syllabus 2024
LO 1, AC 1.1
Discussion
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