Which of the following is not an advantage of using a distribution center?
A. More accurate sales forecasts are possible.
B. Retailers need to keep less merchandise in the store as inventory if the stores get frequent deliveries.
C. It is easier to avoid running out of stock or having too much stock.
D. Use of a distribution center saves money since the storage space at a distribution center is generally less expensive than that of a store.
E. Customers know they are dealing with a more sophisticated and financially well-off operation if the firm uses a distribution center.
Answer: E. Customers know they are dealing with a more sophisticated and financially well-off operation if the firm uses a distribution center.