Question: A company is considering changing its distribution strategy from push to pull, meaning instead of stocking up inventory at stores to fill consumers demand, it

A company is considering changing its distribution strategy from push to pull, meaning instead of stocking up inventory at stores to fill consumers demand, it uses stores mainly as show-rooms. Its weekly average demand at each store is about 50 units. Assume there is economies of scale in picking: the picking cost for the first pick is $1 per unit and is $ 0.1 per unit for follow-up picks. How would its weekly picking costs be affected when it changes from push to pull strategy?
Question 4 options:
Its picking costs would increase by 7.5 times
Its picking costs would keep the same
Its picking costs would decrease by 7.5 times
None of the above

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