Why Is Overstocking Warehouses Not an Effective Solution for a Problem

question 80

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.

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Definitions:

Standard Time

The established duration within which a task or operation should be completed, often used in productivity measurement and workforce planning.

Worker Performance Ratings

Evaluations that measure the effectiveness and efficiency of an employee's work output and quality.

Worker Fatigue

Physical or mental exhaustion experienced by workers, which can reduce efficiency, productivity, and safety in the workplace.

Allowance Factor

A factor applied in planning and design processes to account for potential deviations from standard or expected conditions, ensuring extra capacity or tolerance.