Assessment of Skills and Knowledge(ASK) in Fundamental Marketing Concepts Practice Test

What is one of the advantages to businesses of using electronic data processing and computerized inventory systems in the distribution function?

1. Increases overhead

2. Reduced turnover

3. Saves time

4. Increases average stock on hand

The correct answer is: Saves time

Using electronic data processing and computerized inventory systems significantly saves time for businesses in the distribution function. These systems automate various processes such as inventory tracking, order processing, and stock management, reducing the manual labor and time required to perform these tasks. For example, automated systems can quickly update inventory levels in real time, allowing businesses to respond faster to changes in demand or supply without manual intervention. This efficiency leads to quicker order fulfillment, improved customer satisfaction, and ultimately, more streamlined operations. Moreover, timely access to inventory data allows companies to make informed decisions swiftly, such as reordering stock, managing supply chains, and forecasting needs, which further enhances operational efficiency. Thus, the advantage of time savings provides a competitive edge and contributes to the overall effectiveness of the distribution process.