An intermediary can increase the supply chain surplus by aggregating inventories across large numbers of customers.This is called
A)capacity aggregation.
B)inventory aggregation.
C)warehouse aggregation.
D)relationship aggregation.

Question

Quizplus · Accepted Answer

Inventory aggregation refers to the practice of combining inventory from multiple customers in a single location, which can lead to economies of scale and reduce costs. This can increase the supply chain surplus by optimizing inventory management and reducing lead times. Capacity aggregation refers to leveraging the capacity of multiple suppliers or manufacturers, warehouse aggregation refers to consolidating storage space, and relationship aggregation refers to building stronger relationships with customers or suppliers, all of which can also contribute to supply chain efficiency, but are not directly related to aggregating inventories.

An Intermediary Can Increase the Supply Chain Surplus by Aggregating