CPIM Practice Exam

If demand is stable and continuous, approximately what percentage of storage space will be occupied by goods in a distribution center with a fixed-location system?

1. 50 percent

2. 80 percent

3. 90 percent

4. 100 percent

The correct answer is: 50 percent

In a distribution center with a fixed-location system, the storage space needed for goods is often optimized for continuous and stable demand. When demand patterns are predictable and consistent, it allows for a more efficient use of space. Typically, about 50 percent of the storage space is effective for occupancy because this balance ensures that there is room for a flow of goods in and out, while still allowing certain levels of inventory storage. This percentage takes into account the necessary considerations such as picking efficiency, accessibility, and the ability to manage inventory turnover. A fixed-location system might lead to higher space utilization over time, but it's critical to maintain some buffer space for operations and movement of goods. Therefore, while the optimal percentage might fluctuate depending on the specific operational strategy, a stable and continuous demand environment generally aligns best with the estimate of around 50 percent for occupied space. The other options represent higher percentages, which might imply a less efficient system where space is maximized at the cost of operational flexibility and accessibility. In environments with high turnover or variable demand, one might see higher utilization rates, but under the conditions stated in the question, 50 percent is commonly viewed as appropriate.