Storage Systems Quiz

What is the primary advantage of centralised storage?

• Decreased delivery times

• Reduced storage costs

• Standardised procedures

• Lower wage costs

Which of the following is a potential cost of decentralised storage?

• Economies of scale

• Increased delivery costs

• Specialised staff

• Standardised procedures

Why might a business choose centralised storage over decentralised storage?

• To make inventory more accessible

• To increase responsiveness to local market needs

• To reduce wastage from holding large amounts of stock

• To gain economies of scale and reduce duplication of stock

What is a potential benefit of decentralised storage?

• Reduced delivery costs

• Improved security to prevent theft

• Immediate accessibility of inventory

• Standardised inventory management procedures

Which of the following is a disadvantage of centralised storage?

• Security concerns

• Increased wastage

• High costs of specialist equipment

• Lack of standardised procedures

Using decentralised storage means each department orders and stores their own stock.

• True

• False

One of the benefits of centralised storage is that it decreases the chance of wastage due to holding small amounts of stock.

• True

• False

Specialised staff in centralised storage help in reducing theft and improving efficiency.

• True

• False

What is a key disadvantage of decentralised storage?

• Increased risk of stockouts

• Higher security costs

• Standardised procedures

• Lower flexibility

Centralised storage can lead to which of the following benefits?

• Improved local market responsiveness

• Reduced need for specialised staff

• Lower overall inventory levels

• Increased delivery times