Certified in Logistics, Transportation and Distribution (CLTD) 2026 – 400 Free Practice Questions to Pass the Exam

The quadrant that recommends consolidating all inventory in a single location is the Generics quadrant. This quadrant is characterized by low value but high risk, meaning that the inventory items do not hold a significant financial value in the supply chain but are subject to various risks such as obsolescence, loss, or damage.

By consolidating inventory in a single location, organizations can achieve better control over these risks while reducing management and handling costs associated with multiple storage sites. This centralized approach helps in streamlining operations and minimizing the complexity and costs of inventory management for low-value items that do not need to be distributed widely.

In contrast, other quadrants such as Strategics, Essentials, and Commodities address inventory types with different considerations regarding risk and value, suggesting more dispersed inventory strategies or different management approaches based on their significance and impact in the supply chain.