CPIM Practice Exam

What activities are typically performed on goods in storage?

1. Shipping products directly to customers

2. Maintaining physical security and conducting inventory audits

3. Manufacturing new items from stored goods

4. Selling items on a retail basis

The correct answer is: Maintaining physical security and conducting inventory audits

The activities typically performed on goods in storage include maintaining physical security and conducting inventory audits. This response highlights the importance of safeguarding stored products against theft, damage, or loss, ensuring they remain accounted for and in good condition. Physical security measures may involve surveillance, locks, and controlled access to storage areas. Conducting inventory audits allows organizations to verify the quantities and conditions of goods, ensuring accurate records and aiding in stock management. This process is crucial in supporting overall supply chain efficiency and decision-making, as it provides up-to-date information about available inventory for future operations. In contrast, activities like shipping products directly to customers, manufacturing new items from stored goods, and selling items on a retail basis typically involve goods that are not merely in storage but are actively being utilized in the supply chain. Such activities are more aligned with the distribution and sales processes rather than the core functions associated with goods that are simply being stored.