All of the following are advantages of using a distribution center except
A) more accurate sales forecasts are possible.
B) retailers need to keep less merchandise in the store as inventory if the stores get frequent deliveries.
C) it is easier to avoid running out of stock or having too much stock.
D) use of a distribution center saves money since the storage space at a distribution center is generally less expensive than that of a store.
E) customers know they are dealing with a more sophisticated and financially well-off operation if the firm uses a distribution center.

Question

Quizplus · Accepted Answer

The advantages listed in options A, B, C, and D are all typically associated with the use of a distribution center. Option E, however, is not actually an advantage of using a distribution center, but rather a subjective perception that customers may have about the company. Therefore, option E is the correct answer as it does not relate to a tangible benefit of using a distribution center.

All of the Following Are Advantages of Using a Distribution