What are the advantages and disadvantages of centralized inventory?

Centralized inventory management means unified inventory management. The availability rate of goods in centralized inventory is higher, and centralized inventory is easier to be controlled by headquarters in management, and the data is more transparent. However, centralized inventory management is far from the market, which will affect the dealer's response speed to the market. In contrast, it is another form of inventory management: distributed inventory management. This method refers to the establishment of inventory near the regional market. Its advantage is that dealers can quickly respond to market demand through direct delivery; The disadvantage is that the stock rate is not high, and out of stock often occurs. Moreover, manufacturers need to establish inventory points in different regional markets, which will lead to an increase in inventory management costs. Because the distributed inventory management mode is difficult to be controlled by manufacturers, in order to get the statistical data of regional inventory in time, manufacturers must also invest a lot of money in information systems. In addition, due to the limited inventory capacity in the regional market, regional branches need to transfer goods to factories many times, which also leads to higher transportation costs. However, because the regional warehouse is closer to the market, the cost of distribution to dealers will be reduced accordingly, so the transportation cost is generally similar to that of centralized inventory. So, do you know the advantages and disadvantages of centralized inventory?