Question 2 of 14 Which of the following best explans why dis

Question 2 (of 14 Which of the following best explans why distributors help to reduce the space retallers need to store imentony? ODistributors allow retailers to receive truckload shipments more frequently O Distributors decrease the total ance products travel in the supply chain. Distributors allow retailers to receive smaller quantities of each supplier\'s product. O Distributors increase the time that inventory spends in the supply chain References

Solution

In order to decrease warehousing space (space to store inventory), retailers need 2 conditions to be fulfilled:

1. Orders to be delivered in small quantities by distributors, that will actually help in reducing the space required to store, as lesser the quantity lesser would be the requirement of space;

2. Least possible time for delivery of the order placed with the distributor. Even, if retailer keeps small quantity of the products but is unable to procure next order delivery in time, he will use customer due to non-availability of the inventory in the store.

Evaluations of the options in the Question:

a) it doesn\'t meet the first condition, as it mentions that distributor shall supply truckload of inventory which exactly opposite of requisite. Hence, not the right option.

b) it doesn\'t mention smaller quantities and also even if distance is reduced and quantity of orders is not reduced, need for storage will not reduce. Hence, incorrect answer.

c) order in small quantity ensures lesser spacer requirement and order from multiple suppliers ensures fulfilments of demands of all customers. Hence, correct option.

d) it doesn\'t meet the second condition, as it increases the time required to deliver one order. Hence, incorrect option.