Which of the following is NOT consistent with a decentralized warehousing system?
A)Higher safety stocks required
B)Shorter lead times
C)Lower transportation fees
D)Lower total operating costs

Question

Which of the following is NOT consistent with a decentralized warehousing system?​
A)​Higher safety stocks required
B)​Shorter lead times
C)​Lower transportation fees
D)​Lower total operating costs

Quizplus · Accepted Answer

Decentralized warehousing system usually involves having multiple smaller warehouses located closer to customers. Although it offers benefits such as shorter lead times and lower transportation fees, it may require higher safety stocks due to the distribution of inventory. Thus, higher total operating costs can be expected. Therefore, option D is not consistent with a decentralized warehousing system.

Which of the Following Is NOT Consistent with a Decentralized