Which of the Following Does NOT Describe the Benefits of Utilizing

question 82

Multiple Choice

Which of the following does NOT describe the benefits of utilizing distribution centres over direct store delivery?

• A) More accurate sales forecasts are possible when retailers combine forecast for many stores serviced by one distribution centre, rather than doing a forecast for each store.
• B) Distribution centres enable the retailer to carry less merchandise in the individual stores.
• C) The use of distribution centres increases inventory investment systemwide.
• D) It is easier to avoid running out of stock or having too much stock in any particular store because merchandise is ordered from the distribution centre as needed.
• E) The effects of forecast error for the individual stores are minimized and less backup inventory is needed to prevent stockouts.

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