Which of the following is a drawback of decentralized inventory?

Decentralized inventory refers to distributing inventory across multiple locations rather than centralizing it in a single facility. While this approach can offer greater responsiveness to local demand, it does introduce a level of complexity in infrastructure management.

Having multiple inventory sites means that the systems, processes, and management protocols must be coordinated across various locations. This can lead to complications in inventory tracking, data management, and maintaining consistent stock levels. The organization needs to ensure that each location operates efficiently and aligns with overall company goals, which adds layers of operational complexity.

A more complicated infrastructure can also increase the potential for errors and inefficiencies. Challenges may arise from differing operational practices, variability in inventory management techniques, and the need for effective communication between diverse sites. Thus, this option highlights a significant drawback associated with decentralized inventory systems in terms of managing and overseeing multiple locations successfully.