What is the initial decision to be made regarding merchandise flow?

The initial decision regarding merchandise flow focuses on the logistics of how products will move from their origin to the point of sale. Choosing whether to transport merchandise from the manufacturer to a distribution center or directly to stores is crucial because it impacts the efficiency of the supply chain, inventory management, and ultimately the speed at which products are available to customers.

By selecting the transportation method, a company can optimize delivery times and reduce costs. For instance, transporting directly to stores can minimize handling and shorten lead times, while using a distribution center might allow for better inventory control and consolidation of shipments.

The other options, while important for overall business strategy, do not directly pertain to the flow of merchandise. Hiring more sales staff relates to staffing needs, changing the pricing strategy addresses how products are marketed and sold, and initiating a marketing campaign concerns promoting the product rather than its logistics. Thus, the decision about merchandise flow is a foundational element in ensuring that customers receive the right products in a timely manner.