Solved

Why Are Inventory Carrying Costs Higher for Retailers Who Source

Question 54

Multiple Choice

Why are inventory carrying costs higher for retailers who source internationally?


A) Lead times are longer, and there is a need to maintain higher levels of safety stocks.
B) There is no way to predict the extra tariffs that will be levied by importing countries.
C) Labels of origin are typically put on products and need to be removed upon arrival.
D) Changes in fixed costs result in additional inventory.
E) Foreign distribution centers charge higher storage fees.

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