Question

Which of the following options correctly completes the given statement?

Warehouses are organized to make it easier to find products when picking an order. A
warehouse puts product where there is space for it within the zone. This practice:

A. Makes inventory management more efficient.

B. Assists forklift operators in swift product delivery.

C. Streamlines the process for order pickers.

D. Maximizes the storage capacity for products.

Answer 1

Warehouses organized to maximize space and strategically place products can D. increase storage capacity and contribute to economies of scale, lowering the cost per unit as the quantity of output increases.

Step-by-step explanation:

Organizing a warehouse in a way that places products where there is space available within the zone is a strategy that could potentially maximize the storage capacity for products. This approach could help a warehouse make the most efficient use of available space, which is crucial for large-scale operations that aim to benefit from economies of scale, as demonstrated by companies like Amazon and Costco.

When a warehouse optimizes its space in this manner, it contributes to keeping the costs down as the quantity of output goes up, reflecting the principle of economies of scale where the cost per unit decreases with increased production. Furthermore, this strategic organization assists in improving overall inventory management efficiency and streamlining the processes for workers, such as forklift operators and order pickers, enhancing productivity.