Warehousing and ____ are substitutes for each other.

Question

Quizplus · Accepted Answer

Warehousing and transportation are substitutes for each other because if a company invests in efficient transportation systems, they may not need to store as much inventory for as long in a warehouse. On the other hand, if a company invests in a large warehouse, they may be able to save money on transportation costs by ordering larger quantities at once. Therefore, these two functions can offset each other in terms of the amount or duration of inventory that needs to be stored.

Warehousing and ____ Are Substitutes for Each Other