Arizona State University (ASU) SCM355 Supply Management Test 1 Practice

The primary purpose of a central warehouse lies in its role as a hub for storing and managing inventory, which is critical for efficient distribution to various locations. A well-organized central warehouse optimizes the flow of goods, ensuring that products are available when needed and minimizing delays in supply chains. This centralized approach allows businesses to maintain a comprehensive inventory, streamline operations, reduce costs associated with excessive storage, and enhance service levels by enabling timely fulfillment of orders across multiple distribution points.

In contrast, other options focus on distinct functions that do not align with the primary role of a central warehouse. Manufacturing products for retail is not a warehouse function but pertains to production facilities. Serving as a customer service center addresses customer support rather than inventory management. Lastly, acting as a training facility for employees relates to workforce development and training operations, which is separate from inventory storage and distribution activities. Thus, the correct choice emphasizes the central warehouse's foundational role in supply management.