APICS Certified Supply Chain Professional (CSCP) — Question 375

A company finds that one of its warehouses is out of capacity to store products. Expanding the physical size of the warehouse is not an option. The most appropriate solution would be to increase the:

Answer options

• A. cash-to-cash cycle of slow-moving items
• B. inventory turn of slow-moving items
• C. use of break-bulk warehousing
• D. inventory days of supply of fast-moving items

Correct answer: B

Explanation

Increasing the inventory turn of slow-moving items allows the company to sell off excess stock more quickly, thus freeing up space for new products. The other options do not effectively resolve the capacity issue; for instance, increasing inventory days of supply for fast-moving items could exacerbate the storage problem, while the cash-to-cash cycle and break-bulk warehousing do not directly address storage capacity.