Question

Considering warehouse operations, which of the following is generally NOT TRUE: __________. The more warehouses in...

Considering warehouse operations, which of the following is generally NOT TRUE: __________.

The more warehouses in the network, the higher the inventory costs
The more warehouses in the network, the higher the level of customer service.
The more warehouses in the network, the greater the chance of lost sales
The more warehouses in the network, the lower the transportation costs
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Answer #1

Considering warehouse operations, the statement number 3 is not true, which is "The more warehouses in the network, the greater the chance of lost sales".

There is no relationship established between lost sales and the number of warehouses. There is no direct or indirect correlation between higher the number of warehouses and higher number of lost sales. In fact if there are more warehouses and there is a good network of warehouses then the sales department has an added selling point to convince the prospect that they shall be serviced promptly whenever there is a requirement from him, which in turn shall convert the prospect into a customer. Therefore, more the number warehouses, lesser chance of lost sales.

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