Decentralized warehousing system is consistent with: Group of answer choices A. Lower safety stocks required, Shorter...

Decentralized warehousing system is consistent with:

Group of answer choices

A. Lower safety stocks required, Shorter lead times

B. Higher safety stocks required, Longer lead times

C. Higher safety stocks required, Shorter lead times

D. Lower safety stocks required, Longer lead times

Solutions

Expert Solution

The correct answer is option C: Higher safety stocks required, Shorter lead times.

Decentralized Warehousing
Decentralized Warehousing is a way of maintaining many smaller warehouses opened in completely different areas so that different types of products can be stocked and different markets could be served. The benefit of having a redistributed system is a reduction in the delay of handling of material. Having a decentralized system would help a business to get the products and deliver them to your customers in a short manner time. Another benefit is that a business has different warehouses in different areas so you can either store the same type of product in high quantity or stock more types of products for the needs of different markets. Decentralized Warehousing System is consistent with higher safety stocks required and shorter lead times, lower transportation fees, lower total operating costs

keosha answered 2 weeks ago

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