Wal-Mart, like many companies in the new economy, uses a hub-and-spoke distribution system to:
A) increase costs of stocking and inventory .
B) change consumer attitudes toward warehouse shopping.
C) shift consumer demand to the left.
D) decrease costs of stocking and inventory.

Question

Quizplus · Accepted Answer

The hub-and-spoke distribution system is designed to decrease costs of stocking and inventory by centralizing the distribution process at a main hub (such as a warehouse or distribution center) and relying on smaller spokes (such as retail stores or delivery routes) to transport products to customers. This system allows for more efficient use of resources and reduces the need for excess inventory to be held at each location.

Wal-Mart, Like Many Companies in the New Economy, Uses a Hub-And-Spoke