CPIM Practice Exam

What is a key function of a distribution warehouse?

1. Ensure long-term storage of goods

2. Facilitate the expedited movement and handling of goods

3. Manufacture goods to fill customer orders

4. Provide repair services for defective products

The correct answer is: Facilitate the expedited movement and handling of goods

The primary function of a distribution warehouse is to facilitate the expedited movement and handling of goods. This involves efficiently managing inventory levels and processing incoming and outgoing shipments to ensure that products reach customers in a timely manner. Distribution warehouses are strategically positioned to optimize the flow of goods, reducing lead times and improving service levels. Unlike long-term storage facilities, distribution warehouses focus on quick turnover of inventory rather than holding goods for extended periods. They are not typically involved in manufacturing, as their purpose is to store and distribute products rather than create them. Similarly, while some warehouses might handle returns or assist with defective products, providing repair services is not a core function of a distribution warehouse. The emphasis is on logistics, speed, and the management of product flow to meet customers' immediate needs effectively.