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What is the long-term effect of reducing the number of distribution centers between a manufacturer and its customers?
Suggested Answer: B
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12 comments · newest first
HE
Henriette
11 months ago
Just a reminder, total stock might actually decrease with fewer centers.
CH
Cheryll
11 months ago
I think B is misleading, costs can drop in both areas.
CH
Chauncey
11 months ago
Wait, are we sure about that? Sounds too good to be true.
JI
Jina
11 months ago
Totally agree, D seems like the right choice!
BE
Belen
12 months ago
Fewer distribution centers usually means lower transport costs overall.
SH
Sherrell
12 months ago
I vaguely remember something about total stock levels increasing with fewer centers, but that doesn't seem to fit with the transport cost options.
AN
An
12 months ago
I feel like the answer has to be about transport costs decreasing, but I can't decide if it's just from the factory to the centers or also to customers.
CH
Chan
1 year ago
I remember a practice question where we discussed how fewer distribution centers could lead to increased efficiency, but I can't recall if that means costs go down everywhere.
BR
Bronwyn
1 year ago
I think reducing distribution centers might lower transport costs overall, but I'm not sure if it affects both legs of the journey.
FR
Franklyn
1 year ago
Ah, this is a tricky one. I'll need to review my notes on SIP URI dialing to make sure I choose the right option.
AN
Annamae
1 year ago
This looks like a tricky networking question. I'll need to carefully review the scenario and exhibit to understand the issue with the dynamic tunnels.
JI
Jin
1 year ago
Wait, I'm confused about the amortization of intangible assets. I'll have to double-check that.