Question

Which of the following is NOT considered one of the major economic benefits provided by warehouses? Reduce transportation costs O Create assortment Reverse logistics Increase inventory turnover Stockpiling to accommodate seasonal production

Answer 1

Answer: Increasing inventory turnover

Rationale: There are 4 benefits economically due to warehouses and they are i. reducing the transportation costs through consolidation ii. creating assortment like cross-docking and mixing iii. reverse logistics iv. seasonal storage of goods. Increasing turnover depends on the sales of the product and not on the warehouses.