Suppose a Large Retail Chain Is Considering Increasing the Number

question 216

Multiple Choice

Suppose a large retail chain is considering increasing the number of distribution centres that serve its retail stores from 6 to 20. If the number of suppliers, retail outlets, and customers remain unchanged, which of the following statements accurately describes what will happen as a result of this expansion?

• A)Total inventory in the warehouse system will increase.
• B)Outbound transportation costs from the warehouses increase, and total transportation costs will increase.
• C)Average inventory per warehouse will increase.
• D)Inbound transportation costs to the warehouses will decrease.

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Definitions:

CIA

The Central Intelligence Agency, a U.S. federal agency responsible for conducting intelligence and counterintelligence activities abroad.

Operation Rolling Thunder

A campaign of extensive aerial bombing conducted by the United States during the Vietnam War.

NLF Fighters

Members of the National Liberation Front, a South Vietnamese communist-led organization and guerrilla force that fought against the United States and South Vietnamese governments during the Vietnam War.

American Air Base

A military base owned and operated by the United States Air Force located in various countries around the world.