Chain stores that use distribution centers can carry less merchandise in each retail outlet.

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Multiple Choice

Chain stores that use distribution centers can carry less merchandise in each retail outlet.

Explanation:
Centralized distribution centers act as a hub for replenishment to multiple stores. When goods are routed through a DC, each retail outlet doesn’t need to keep large quantities on hand; they can maintain smaller shelf stocks and rely on frequent shipments from the DC. That lowers in-store carrying costs, makes better use of limited shelf space, and enables a broader overall assortment across the chain. In short, chain stores that use distribution centers can carry less merchandise in each outlet.

Centralized distribution centers act as a hub for replenishment to multiple stores. When goods are routed through a DC, each retail outlet doesn’t need to keep large quantities on hand; they can maintain smaller shelf stocks and rely on frequent shipments from the DC. That lowers in-store carrying costs, makes better use of limited shelf space, and enables a broader overall assortment across the chain. In short, chain stores that use distribution centers can carry less merchandise in each outlet.

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