Which of the Following Statements About Centralization Is True

question 1

Multiple Choice

Which of the following statements about centralization is true?

• A) Centralization typically increases costs
• B) Centralization allows management to better tailor its offering to the needs of the local market
• C) Centralization provides the opportunity to have the best people with the greatest expertise make decisions for the entire corporation
• D) Retailer stores are required to hire more managers with centralization
• E) All of these statements about centralization are true

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Definitions:

Fixed Location Layout

A facility arrangement strategy where resources such as equipment and personnel are fixed in location, optimal for processes involving heavy or immovable items.

Product-Focused Layout

A layout strategy in manufacturing where facilities are organized around the production of a specific product or group of products.

Push-Based Strategy

A push-based strategy in supply chain management involves forecasting demand and producing goods ahead of customer orders, pushing them through the distribution channels to the end consumers.