Asked by Maria Clara on Jul 14, 2024
Verified
One reason retailers are reluctant to use distribution centers is that retail store space is typically much less expensive than space at a distribution center, so it is more cost-effective to store merchandise and get it ready for sale at the retail store rather than at a distribution center.
Distribution Centers
Facilities that store goods before they are distributed to stores or end consumers.
Retail Store Space
The physical area that a retailer utilizes to display products for sale to customers within a store.
- Grasp the operational and strategic importance of distribution centers.
Verified Answer
LS
Lesley SanchezJul 15, 2024
Final Answer :
False
Explanation :
Retailers often use distribution centers because they allow for more efficient handling and storage of goods, taking advantage of economies of scale, and typically have lower costs per unit of space compared to retail store locations. Distribution centers streamline the supply chain, reduce inventory holding costs at retail stores, and can lead to more efficient distribution processes.
Learning Objectives
- Grasp the operational and strategic importance of distribution centers.
Related questions
Matt Is the Distribution Center Manager for a Toy Manufacturer ...
What Term Is Used to Describe the Outsourcing of Logistics ...
Which Distribution System Is the Fastest Growing Mode of Shipping ...
Convenience Products Such as Bread,milk,and Chewing Gum Would Probably Be ...
Explain How the Design of the Distribution Network Affects the ...