Compared to a centralized distribution network strategy, an organization using a decentralized distribution network strategy can usually expect:
A) lower cost of lost sales and higher inventory cost
B) higher cost of lost sales and higher inventory cost.
C) lower cost of transportation and lower warehousing cost.
D) higher cost of transportation and lower warehousing cost.

Question

Quizplus · Accepted Answer

A decentralized distribution network strategy typically involves multiple distribution centers located closer to customers, resulting in lower transportation costs and reduced inventory levels due to faster delivery times.

Compared to a Centralized Distribution Network Strategy, an Organization Using