Which of These Statements About Inventory Management Is BEST

question 36

Multiple Choice

Which of these statements about inventory management is BEST?

• A) Spot stock warehouses are more useful with less inventory in the system.
• B) A system using air transportation experiences higher costs due to higher levels of inventory.
• C) Cross-docking facilities don't need to match incoming and outgoing demand since they typically retain much of their inventory for a week or longer.
• D) A system using water and rail transportation tends to have higher levels of inventory.

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Definitions:

Divisionalized Structures

An organizational form in which the company is divided into semi-autonomous units or divisions, each responsible for its own operations and profitability.

Network Structure

An organizational design where entities are connected less hierarchically and more through a flexible arrangement of nodes, facilitating information flow and collaboration.

Global Competition

The scenario where businesses compete across national borders in various markets, driven by increasingly interconnected world economies.

Organizational Design

The process of shaping an organization's structure and roles to align with its objectives, strategy, and environment.