Certified Logistics Associate (CLA) Practice Test 2025 – All-in-One Guide for Exam Success!

Question: 1 / 400

What is the main goal of effective inventory management?

To minimize the number of suppliers

To maintain an optimal balance of stock levels

Effective inventory management primarily aims to maintain an optimal balance of stock levels. This balance ensures that a business has enough inventory to meet customer demand without overstocking, which can lead to increased holding costs and potential wastage. By keeping stock levels balanced, companies can enhance their operational efficiency, reduce costs associated with excess inventory, and improve customer satisfaction through timely order fulfillment.

Maintaining optimal stock levels also involves understanding demand patterns, forecasting accurately, and responding to fluctuations in the market. This focus on balance helps businesses not only to reduce waste but also to optimize cash flow by tying up less capital in unsold goods. Therefore, the approach is about finding the right amount of inventory to serve customer needs while managing costs effectively. This is critical for the sustainability and profitability of a business in a competitive environment.

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To reduce employee training costs

To focus only on cost-cutting measures

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