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Question
What is the effect of having more warehouses in a distribution network?
Options
Slower service but lower cost
Faster service but higher cost
Slower service and higher cost
Faster service and lower cost
MCQ
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Solution
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.
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