Multiple Choice Question

Question

Many logistics costs are interrelated; for example, increasing inventory costs with additional warehouses should result in Blank______.
Multiple choice question.

increased levels of stockouts

increased order processing costs

decreased use of electronic data exchange

reduced transportation costs

Answer 1

The correct answer is:

reduced transportation costs

Increasing inventory costs with additional warehouses can lead to reduced transportation costs since products can be stored closer to customers, improving logistics efficiency.