Practice Quiz

Lean Bronze

Category - Continuous Improvement

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If your organization has limited warehouse space, only needs small amounts of a product, or needs a wide variety of products for many suppliers, it is most advantageous to use which of the following?
  1. Large suppliers to store and warehouse anticipated needs.
  2. Small suppliers to store and warehouse anticipated needs.
  3. Distributors to store and warehouse anticipated needs.
  4. Manufacturers to store and warehouse anticipated needs.
Explanation
Answer: C - If your organization has limited warehouse space, only needs small amounts of a product, or needs a wide variety of products from many suppliers, it is most advantageous to use distributors. This promotes effective use of your warehouse space and eliminates the overhead costs for the storage of product.
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