Prepare for the CPIM Exam with a comprehensive quiz that features insightful questions and real-time feedback. Enhance your knowledge and understanding of inventory and production management to pass your certification test with confidence!

Practice this question and more.


How does random-location storage impact storage efficiency?

  1. Increases the probability of item loss

  2. Reduces the time required for restocking

  3. Optimizes the use of available space

  4. Promotes better item organization

The correct answer is: Optimizes the use of available space

Random-location storage significantly optimizes the use of available space by allowing items to be stored in any available location rather than designated spots. This flexibility means that when products come in, they can be placed wherever there is space, which often leads to a more efficient use of the storage area. Because random-location storage doesn't rely on pre-assigned locations, it can adapt to fluctuating inventory levels, effectively filling in gaps and making use of all accessible space. This method can ultimately lead to higher density storage, maximizing the area for both storage and retrieval operations. In contrast, while random-location storage may promote effective organization in some contexts, it doesn't inherently guarantee better item organization since items could be scattered throughout the space. It may also increase the time required for restocking if the picking route becomes inefficient due to randomness. The fear of item loss can also arise when items are not consistently stored in predictable locations, potentially complicating inventory management.