CIPS Exam L4M7 Topic 5 Question 29 Discussion

Actual exam question for CIPS's L4M7 exam

Question #: 29
Topic #: 5

[All L4M7 Questions]

Which of the following are main objectives of warehouse operations? Select TWO that apply.

ATo ensure stock available when customers demand

BTo create sufficient space for redundant stock

CTo minimise stock loss and deterioration

DTo generate check digits for a product code

ETo maintain the highest level of buffer stock

Show Suggested Answer

Suggested Answer: A

Obsolescent stock is stock, usually finished goods, which is in good condition and satisfactory working but for which demand is irreversibly falling towards zero. Once this demand reaches zero the stock can be considered 'obsolete'. It cannot be used or sold in its current state. Food ingredients (like candy canes) which are out of date are another example.

LO 2, AC 2.1

by Mitsue at Mar 05, 2024, 04:49 PM

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Mee

10 days ago

D? Really? Generating check digits for a product code has nothing to do with warehouse operations. I'd go with A and E as the correct answers.

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Corinne

12 days ago

I think A and C are the main objectives of warehouse operations. Ensuring stock availability and minimizing stock loss are crucial for meeting customer demand and maintaining efficient operations.

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