________ costs increase as the number of facilities in a supply chain increases.
A)Inventory
B)Transportation
C)Retail operation
D)Information

Question

Quizplus · Accepted Answer

As the number of facilities in a supply chain increases, the need for inventory at each facility also increases in order to meet demand variability and ensure adequate supply. This results in higher holding costs, order costs, and potentially lost sales due to stockouts. Transportation costs may also increase with more facilities, but this would only be true if there were more frequent shipments between facilities. Retail operation costs and information costs may also increase but are not directly related to the number of facilities in the supply chain.

________ Costs Increase as the Number of Facilities in a Supply