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Supply Chain Management

Category - Design and Improvement

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Relative to manufacturer storage, ________ will require a higher level of inventory.

Distributor storage
Retailer storage
Vendor storage
All of the above.

Explanation

Answer: D - Relative to manufacturer storage, distributor storage will require a higher level of inventory because the distributor/retailer/vendor warehouse aggregates demand uncertainty to a lower level than the manufacturer who is able to aggregate demand across all vendors/distributors/retailers.

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