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.
E)It lowers fill rate.

Question

Quizplus · Accepted Answer

Overstocking warehouses increases inventory costs without necessarily addressing the root cause of low availability. It may also lead to excess inventory that becomes obsolete or expires, further increasing costs. It is generally not an effective solution for low availability as it does not address the underlying issues causing the shortage.

Why Is Overstocking Warehouses Not an Effective Solution for a Problem