Why Isn't Overstocking Warehouses an Effective Solution for a Problem

question 74

Multiple Choice

Why isn't overstocking warehouses an effective solution for a problem of low availability?

• A)It does not speed product time to market.
• B)It is an inefficient use of raw materials.
• C)It increases sales costs.
• D)It increases inventory costs.
• E)It lowers fill rate.

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Definitions:

Dormant

In a state of inactivity or dormancy, not currently active but with the potential to become active.

Mushrooms

A type of fungus with a stem, cap, and gills or pores underneath the cap, varying greatly in color and size, some of which are edible while others can be poisonous.

Yeast

A type of fungus used in baking and brewing due to its fermentation properties, also known to cause infections in humans.

Mold

A fungus that grows in the form of multicellular filaments called hyphae, commonly found in damp, warm conditions.