CPIM Practice Exam

In a floating-location system, what is mainly improved by allowing any item to be assigned to any empty space?

1. Picking efficiency

2. Warehouse aesthetics

3. Cube utilization

4. Inventory accuracy

The correct answer is: Cube utilization

In a floating-location system, allowing any item to be assigned to any empty space primarily enhances cube utilization. This type of system maximizes the use of available storage space by filling in any voids with inventory, regardless of the specific item type. This flexibility leads to more efficient use of the warehouse's cubic storage capacity, as products can be stored in a manner that optimally fills the available space and accommodates varying inventory levels. When items are not tied to fixed locations, the warehouse can dynamically adjust to fluctuations in inventory, allowing for a more effective storage strategy that prevents wasted space. Consequently, this can also lead to improved overall warehouse efficiency since space can be managed effectively based on current inventory rather than strict location assignments. Other factors like picking efficiency and inventory accuracy might be positively affected indirectly through better space management, but the primary improvement in a floating-location system is cube utilization, ensuring maximum efficiency in the use of storage space.