Which of the following statements is an advantage of using distribution centers over direct store delivery?
A) Individual stores that forecast and draw from a DC are more cost efficient.
B) The DCs have the advantage of keeping extra merchandise as backup stock in the store.
C) Direct store delivery is always more expensive.
D) The DCs enable the retailer to carry less overall inventory.
E) The DC can always deliver faster than a vendor.

Question

Quizplus · Accepted Answer

Using DCs results in overall lower inventory levels because the amount of backup stock needed in a centralized DC is less than the amount of backup stock needed in all the stores served by the center.

Which of the Following Statements Is an Advantage of Using