2. Which of the following best explains why distributors help to reduce the spac

Question

2. Which of the following best explains why distributors help to reduce the space retailers need to store inventory? Distributors allow retailers to receive truckload shipments more frequently. Distributors decrease the total distance products travel in the supply chain. ODistributors allow retailers to receive smaler quantties of each supplier's product Distributors increase the time that inventory spends in the supply chain References Multiple Choice (IRT) Dimiculty: 1 Easy Learning Objective: 11-01 Explain the roles and value of each layer within a supply chain

Explanation / Answer

Total demand from customers during a specific time duration will be same as total demand placed on retailers

In case retailers are able to reduce storage space for storing goods , it reduces overhead cost for retailers resulting in reduced cost of service to end customers. Therefore, reduction of storage space for retailers is a desirable outcome.

Since a fixed quantity of demand has to be catered by the distributor to retailers, it can reduce storage space by ensuring FREQUENT SUPPLIES.

Therefore , correct answer would be “Distributors allow retailers to receive truckload shipment more frequently”

ANSWER : DISTRIBUTORS ALLOW RETAILERS TO RECEIVE TRUCKLOAD SHIPMENTS MORE FREQUENTLY

ANSWER : DISTRIBUTORS ALLOW RETAILERS TO RECEIVE TRUCKLOAD SHIPMENTS MORE FREQUENTLY

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