Which of the following allow an organisation to have more flexible space for storage by leveraging the facilities of other parties? Select TWO that apply.

Which of the following allow an organisation to have more flexible space for storage by leveraging the facilities of other parties? Select TWO that apply.
A . Eliminating dead stock or inventory
B . Temporary warehousing
C . Installing double-deep pallet racking
D . Consignment stocking
E . Adopting carousel-type storage

View Answer

Answer: B, D

Explanation:

Temporary warehousing (or ‘Very short-term warehousing’) is offered in the market where organization makes their requirements for space open online to offers or bids for available space. This appears to be an emerging market and service providers in the UK and USA typically quote a price per pallet per week with some also requiring a ‘transaction fee’ for movements of each pallet in and out.

Consignment stocking is a facility offered by a supplier to a buyer to allow a delivery of stock to the buyer with payment only after it is used or sold to a customer.

Double-deep pallet racking and carousel-style storage are two tools that leverage space within a warehouse:

Double-deep pallet rack

Carousel style storage

Reference: CIPS study guide page 31

LO 1, AC 1.1