Certified Professional Category Analyst (CPCA) Practice Questions 2025 – All-In-One Guide to Exam Success

When retailers are determining which products to carry, balancing variety and capacity is critical for several reasons. Variety refers to the range of different products or product lines a retailer offers. It is essential for meeting the diverse needs and preferences of consumers, which can attract more customers and drive sales.

On the other hand, capacity refers to the physical limitations of a retailer's space, including shelf space and storage availability. Each additional product can impact inventory levels, turnover rates, and ultimately, profitability. If a retailer chooses to focus too heavily on variety without considering capacity, they might overcrowd their shelves, leading to inefficient inventory management and out-of-stock situations.

Achieving the right balance allows retailers to maximize their product offerings while ensuring that they can effectively manage inventory, avoid stockouts, and maintain a visually appealing shopping environment for their customers. The other options focus on specific aspects of inventory and shelf management, but they do not encompass the broader and more strategic challenge of ensuring that a retailer provides a sufficient variety of products without exceeding their storage and display capacity.