Which one of the following statements on inventory placement of finished goods is best?
A) Forward placement might help reduce transportation cost.
B) Forward placement is consistent with a competitive priority that calls for customization.
C) Inventory pooling should be avoided when demand in various regions fluctuates month to month.
D) Backward placement is consistent with a competitive priority that calls for fast delivery times.

Question

Quizplus · Accepted Answer

Forward placement of inventory can help reduce transportation costs by locating finished goods closer to customers or distribution centers. This can also help in fulfilling customer orders quickly and efficiently. The other options do not provide an accurate or optimal approach to inventory placement.

Which One of the Following Statements on Inventory Placement of Finished