Question

All of the following are advantages of using a distribution center except

lower inventory investments systemwide

increased customer awareness and appreciation a firm's supply chain

the possibility of more accurate sales forecasts

increased cost-effectiveness relative to storage of merchandise

decreased likelihood of running out of or having too much stock

Answer 1

Distribution centers are very important as they help in maintaining stock of multiple location at a single point which would reduce the need for more warehouses . The distribution can be done faster with goods moving faster . Goods which are running out of stock can be refilled and the goods which are slow moving can be identified and eliminated from the list . Customers also find it easy to approach and receive goods and hence having a distribution center increases the reputation of the company . It saves a lot of investment because having one distribution center eliminates the need to set up more ware houses at different locations. However it might not be helpful in sales forecasts and it's accuracy as there are many other requirements to get accurate sales forecasts like