The question below is based on the following information:
Which of the following distributions would be the central warehouse allocation of 120 units of inventory to district warehouses A, B, and C if the equal run-out method were used?
The equal run-out method means distributing the inventory to ensure each district warehouse runs out at the same time. So the correct answer should be B) 20 units to A, 60 units to B, 40 units to C.
Hyman
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