designing a warehouse network if the overall safety stock increases as the number of warehouses increase then:
A)Network uncertainty is decreasing
B)Network uncertainty is increasing
C)Network uncertainty in constant
D)Safety stock is appropriately linked to average stock

Question

Quizplus · Accepted Answer

As the number of warehouses increases, the overall safety stock also increases. This suggests that there is more uncertainty in the network, as there are more potential points of failure or disruptions that could impact inventory levels. Therefore, the correct choice is B, network uncertainty is increasing.

Designing a Warehouse Network If the Overall Safety Stock Increases