Why isn't overstocking warehouses an effective solution for a problem of low availability?
A) It does not speed product time to market.
B) It is an inefficient use of raw materials.
C) It increases sales costs.
D) It increases production costs.
E) It increases inventory costs.

Question

Quizplus · Accepted Answer

Overstocking warehouses increases inventory costs, which can ultimately lead to financial losses for the company. Additionally, it does not address the root cause of low availability, such as supply chain issues or production inefficiencies. Therefore, it is not an effective solution for this problem.

Why Isn't Overstocking Warehouses an Effective Solution for a Problem