APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 30

A company setting up a warehouse wants to maintain a first in, first out (FIFO) stock rotation. Which of the following storage systems should they utilize?

Answer options

• A. Pallet racking
• B. Block stacking
• C. Flow racking
• D. Push-back racking

Correct answer: A

Explanation

The correct answer is A, Pallet racking, as it allows for easy access to inventory and supports FIFO by ensuring that older stock can be retrieved first. Block stacking does not facilitate FIFO since items can be buried under newer stock, while flow racking is designed for FIFO but is not as efficient for large pallets compared to pallet racking. Push-back racking is typically used for last in, first out (LIFO) systems, which does not align with FIFO requirements.