To facilitate transportation efficiency and inventory management, companies frequently use:

To facilitate transportation efficiency and inventory management, companies frequently use:
A . automated storage/retrieval systems (AS/RS).
B . small lot sizes.
C . standardized containers.
D . contract carriers.

View Answer

Answer: C

Explanation:

Standardized containers are containers that have uniform dimensions and specifications, such as pallets, crates, boxes, etc. Standardized containers can facilitate transportation efficiency and inventory management by reducing the handling time, increasing the loading capacity, improving the space utilization, and simplifying the packaging and labeling processes. Standardized containers can also enable the use of automated storage/retrieval systems (AS/RS) and other technologies that require consistent dimensions and weights of the items.

Reference: CPIM Part 2 Exam Content Manual, Domain 7: Plan and Manage Distribution, Section 7.1: Distribution Network Design, p. 38.