Question: Reducing average inventory levels via lead time pooling is one reason to consider consolidated distribution over direct delivery. This benefit decreases as the lead time

Reducing average inventory levels via lead time pooling is one reason to consider consolidated distribution over direct delivery. This benefit decreases as the lead time between the distribution center

(

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and each retail store increases. Yet, many supply chains implement consolidated distribution even if the average inventory level is higher than that of a direct delivery scenario. Which of the following is not a reason firms might opt for consolidated distribution even when pooling does not reduce inventory?

Group of answer choices

Price discounts from the supplier.

More frequent deliveries to retail stores.

Economies of scale in transportation.

Reduced holding costs.

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