JCPenney's North American stores carry virtually no extra inventory of house-brand shirts. When a shirt is sold, scanner data is directly transmitted to Hong Kong. The private-label supplier TAL Apparel Ltd. in Hong Kong replenishes the stock based on usage, sometimes shipping shirts by air. These logistics have all but one of the following advantages:

JCPenney's North American stores carry virtually no extra inventory of house-brand shirts. When a shirt is sold, scanner data is directly transmitted to Hong Kong. The private-label supplier TAL Apparel Ltd. in Hong Kong replenishes the stock based on usage, sometimes shipping shirts by air. These logistics have all but one of the following advantages:




A) JCPenny can reduce the inventory by almost 50%.
B) JCPenny can lower the inventory costs.
C) JCPenny can respond more quickly to changing consumer tastes.
D) JCPenny can ship the shirts directly by air to consumers.
E) JCPenny can reduce the quantity of goods that have to be marked down.



Answer: D


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