Asked by Brandon Cannon on Jul 21, 2024

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The major disadvantage of a distribution network with local storage is the increased inventory and facility costs.

Local Storage

Refers to the retention of data directly on a client's device, such as a computer or smartphone, allowing for quicker access and reduced dependency on internet connectivity.

Inventory Costs

The total expenses associated with holding and managing inventory, including storage, insurance, and obsolescence.

Facility Costs

Expenses associated with the physical resources required for operations, including rent, utilities, maintenance, and equipment.

  • Recognize the interplay between the structuring of distribution channels and the outcomes on delivery efficiency, covering elements like financial outlay, swiftness, and consumer care.
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ZA
Zongezile AdotyiJul 23, 2024
Final Answer :
True
Explanation :
Local storage requires additional inventory to be held at multiple locations, which can lead to increased facility costs due to the need for additional warehouses or storage facilities.