Asked by
Justin Tarplin
on Oct 18, 2024
Verified
Which approach to aggregation would stock the fast-moving items at decentralized locations close to the customer and slow-moving items at a centralized location?
A) Information centralization
B) Specialization
C) Product substitution
D) Component commonality
Decentralized Locations
A distribution strategy where operations or facilities are spread out across various geographical locations instead of being centralized in one spot.
Centralized Location
A strategic location chosen for warehousing or manufacturing operations to minimize transportation costs and maximize efficiency by serving various regions from a single point.
Component Commonality
The strategy of using the same parts or components in multiple products or models to reduce costs and simplify production.
- Recognize the advantages of inventory aggregation strategies and their impact on inventory management.
Verified Answer
JA
Learning Objectives
- Recognize the advantages of inventory aggregation strategies and their impact on inventory management.