Which of the Following Is Not an Advantage of Using

question 29

Multiple Choice

Which of the following is not an advantage of using a distribution center?

• A) More accurate sales forecasts are possible.
• B) Retailers need to keep less merchandise in the store as inventory if the stores get frequent deliveries.
• C) It is easier to avoid running out of stock or having too much stock.
• D) Use of a distribution center saves money since the storage space at a distribution center is generally less expensive than that of a store.
• E) Customers know they are dealing with a more sophisticated and financially well-off operation if the firm uses a distribution center.

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Definitions:

Technological Advance

The development and application of new technologies and processes that improve efficiency, productivity, or bring new products to the market.

Product Demand

The desire or need for a specific product or service combined with the capacity to purchase it.

Revenues

The income received by a business from its various activities, typically from the sale of goods and services to customers.