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

Question

Quizplus · Accepted Answer

Distribution centers (DCs) allow retailers to consolidate inventory, reducing the need for each store to carry large amounts of stock, thus lowering overall inventory levels.

Which of the Following Is an Advantage of Using Distribution