Question

Which of the following statements is true regarding distribution centers

Answer 1

Distribution centers enable retailers to carry less merchandise in individual stores.

What are distribution centers?

Distribution centers in business also known as warehouses are centers where goods for sale are kept in large quantities for onward distribution to retailers.

Distribution centers are very important to both the producer as well as the retailer.

Distribution centers ensure that the retailers are able to get the goods they sell at a discount price. It also ensures that the retailers do not have seek out the producers in their various factories for them to purchase the goods they need.

Thus, distribution centers enable retailers to carry less merchandise in individual stores.

For the producers, distribution centers serve as an outlet for the producers to get their good into the hands of retailers in large quantities. It also solves the problem of logistics for the producers.

In conclusion, distribution centers serve as temporary stores for goods.

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