As the Number of Stocking Points (DCs) Is Decreased in a Distribution

question 21

Multiple Choice

As the number of stocking points (DCs) is decreased in a distribution network, fixed costs will _____ and variable costs will _____.

• A) decrease; decrease
• B) decrease; increase
• C) increase; increase
• D) increase; decrease

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Definitions:

Personal Influence

Personal influence refers to the impact an individual's behavior, opinions, or actions have on others, often affecting their decisions or perceptions.

Location Segmentation

The process of dividing a market into segments based on the geographical locations of consumers to target marketing efforts more precisely.

Organizational Influences

Factors within a company that affect its operations and culture, including management practices, organizational structure, and internal communication.

Government Regulation

Statutory rules and directives established by governmental bodies to control activities within various industries and society for the protection and welfare of the public.