Why Is Overstocking Warehouses Not an Effective Solution for a Problem

question 5

Multiple Choice

Why is overstocking warehouses not 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:

Damages

Financial compensation awarded by a court to a party who has suffered loss or injury due to the actions or negligence of another party.

Obligations

Duties or responsibilities imposed by law, contract, or moral imperatives, often requiring action or forbearance.

Frustrates Contract

Describes a situation where unforeseen events make the fulfillment of a contract impossible, excusing all parties from their obligations and terminating the contract.

Breach

A violation or infraction of a law, agreement, or set of rules.