Question

What is the effect of having more warehouses in a distribution network?

विकल्प

• Slower service but lower cost

• Faster service but higher cost

• Slower service and higher cost

• Faster service and lower cost

Answer 1

More warehouses give faster customer service because goods are stored closer to customers, but they increase the total cost of the distribution system. This is the core service-versus-cost trade-off in warehousing.