With 75 new regional distribution centers, GM’s inventory interest charges will increase

General Motors has announced plans to open 75 regional distribution centers across the United States with large inventories of cars and light trucks. Some of the centers will carry as many as 2,000 vehicles. This plan will move some of the dealer’s inventory, which GM subsidizes to the new regional centers. With 75 new regional distribution centers, GM’s inventory interest charges will increase. (a) How will the new centers help the retail dealers? (b) How will they help GM? (c) Evaluate GM move from a strategic point of view, and (d) What type of distribution intensity strategy is used by G.M.? Explain.