Why isn't overstocking warehouses 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.
E)It lowers fill rate.

Question

Quizplus · Accepted Answer

Overstocking warehouses increases inventory costs without necessarily improving the availability of products. It can also lead to the waste of raw materials if the products go unsold, and may not improve fill rates if the products are not being replenished in a timely manner. Therefore, overstocking warehouses is not an effective solution for the problem of low availability.

Why Isn't Overstocking Warehouses an Effective Solution for a Problem