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:

MBO Effectiveness

The impact or results achieved through Management by Objectives, a strategic management model that aims to improve organizational performance by defining objectives that are agreed upon by both management and employees.

MBO Failures

Instances where Management by Objectives, a strategic management model, does not achieve its desired outcomes, often due to poor implementation or unrealistic goal setting.

Productivity Gains

Increases in output per unit of input, often achieved through improvements in efficiency, technology, or methods of work.

Distributed Work

A work arrangement where tasks and responsibilities are carried out across multiple geographical locations or in a non-centralized fashion, often utilizing digital communication tools.