Why is overstocking warehouses not an effective solution for a problem of low availability?
A) It does not speed product time to market.
B) It is an inefficient use of raw materials.
C) It increases sales costs.
D) It increases inventory costs.

Question

Quizplus · Accepted Answer

Overstocking warehouses increases inventory costs, which can eat into profits, eliminate potential gains from other areas of the supply chain, and tie up valuable resources that could be used for other purposes.

Why Is Overstocking Warehouses Not an Effective Solution for a Problem