Certified in Logistics, Transportation and Distribution (CLTD) Practice Test 2026 – Your All-in-One Resource to Complete Exam Success!

When evaluating safety stock levels in the context of adding more distribution centers, it is important to understand how inventory management works across multiple locations. Typically, as more distribution centers are introduced into the supply chain, each center can maintain lower safety stock levels individually. This occurs due to the decentralization of inventory and more localized demand fulfillment, which allows for reduced risk of stockouts at each location.

By distributing inventory across multiple sites, companies can more accurately match stock levels to the specific demand patterns and variability of each location. This means that the cumulative safety stock required for the entire network can be optimized, reducing the need for each individual distribution center to hold large quantities of safety stock.

Thus, the correct response indicates that safety stock levels will decrease per distribution center as they are added, reflecting a more efficient use of inventory and improved operational efficiency. The overall safety stock requirement for the entire distribution network might not necessarily decrease, but the strategy allows for a leaner inventory strategy at each specific center.