Answer:
The benefits of Inventory Pooling includes:
- centralizing inventory into fewer locations thus reducing safety stocks and the amount of inventory needed in the supply chain.
- Pulling back inventory when firms have too much at retail level.
Explanation:
inventory pooling is an operational strategy used to increase efficiency in stock management and analysis.
It is a supply chain tool that consolidates multiple inventory locations into a single one.
It is a centralized system that helps with stock keeping. It makes projections easier and helps manage shortfalls that may arise due to demand uncertainty.
It is cost effective by reducing cost of employing more staff and reduces the percentage error due to the centralized portal.
By reducing operational costs, profit is maximized.
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Answer:
B. a decrease; a decrease
Explanation:
Substitutes' goods are products that can be consumed in place of each other. If one product is missing, consumers will be ready and willing to buy its substitute. An increase or fall in the price of a good or services will cause the demand for its substitute to move in the opposite direction.
Equilibrium quantity is when supply matches the demand. If the price of Tuna fish decreases, its demand will increase as more customers will afford it. Tuna and chicken are substitutes, should the price of Tuna decrease, customers will prefer to consume Tuna over chicken. Consequently, the demand for chicken will reduce w leading to a decrease in its price.
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