CPIM Practice Exam

In what way does the "two-bin" system facilitate inventory management?

1. By minimizing supplier interactions

2. By allowing easy emergency orders

3. By ensuring unobstructed physical access to products

4. By promoting visual restocking based on bin levels

The correct answer is: By promoting visual restocking based on bin levels

The "two-bin" system enhances inventory management primarily by promoting visual restocking based on bin levels. In this system, there are two bins for each item in inventory. One bin is used to supply inventory while the second bin serves as a backup. When the first bin is depleted or reaches a predetermined low level, it visually indicates that a reorder should be made. This simplicity allows for immediate recognition of when stock needs replenishing, minimizing the risk of stockouts and facilitating timely reordering. The visual aspect of the two-bin system is particularly beneficial as it requires minimal training and can be easily understood by personnel. This system ensures that the organization maintains a steady supply of inventory without the need for complex tracking systems, as employees can rely on the physical state of the bins to determine when to reorder stock.