APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 138

As the number of warehouses increases in a network, inventory increases at which of the following rates?

Answer options

• A. Exponential
• B. Decreasing
• C. Increasing
• D. Uniform

Correct answer: C

Explanation

The correct answer is C, as increasing the number of warehouses typically leads to a proportional rise in inventory levels to meet demand across more locations. Options A, B, and D do not accurately reflect this relationship; inventory does not grow exponentially, decrease, or remain uniform with the increase in warehouses.