CPIM Practice Exam

What is wall-to-wall inventory management?

1. A method for auditing inventory levels

2. A technique where products are sold online only

3. A process where materials are processed without entering stock

4. A strategy for reducing inventory carrying costs

The correct answer is: A process where materials are processed without entering stock

Wall-to-wall inventory management refers to a process where materials are processed and moved through the supply chain without being stored in stock locations. This approach focuses on minimizing the amount of inventory held at any given time, effectively allowing for a just-in-time flow of materials. By eliminating or significantly reducing the need for storage, organizations can increase their operational efficiency, reduce handling costs, and respond more quickly to customer demand. This method is particularly beneficial in environments where space is limited, or where the cost of holding inventory is high. It aligns with lean manufacturing principles, which emphasize waste reduction and efficient resource utilization. Such a strategy enables companies to increase responsiveness while ensuring that products are available when needed, without the burden of excess inventory.