hard · LSAT Logical Reasoning
Each regional warehouse stocks the full product catalog, but in any given warehouse 40 percent of the items have not shipped a single unit in over a year. Therefore, most of the shelf space in these warehouses holds inventory that generates no revenue. The company should consolidate its slow-moving items into one national fulfillment center and reallocate the freed regional space to fast-moving stock.
The argument's reasoning is most vulnerable to criticism on the ground that it
- infers that most shelf space is unproductive from the fact that 40 percent of item types are unshipped, without establishing how much space those items occupy
- fails to consider whether each regional warehouse stocks any items outside the full product catalog
- assumes without support that one national fulfillment center can hold the company's entire fast-moving catalog, while also reserving capacity for seasonal inventory
- treats inventory that has not shipped in a year as if it can never ship in the future
- confuses revenue generated by an item with the cost of transporting that item between warehouses
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