A Logistic Team Has Developed New Packaging for Their Best-Selling

question 4

Multiple Choice

A logistic team has developed new packaging for their best-selling product that reduces the packaging costs by 60% and the overall package size by 25%. The material can no longer be stacked on pallets and must be shipped and stored in non-stackable, returnable plastic bins. Which of the following statements bests represents the potential trade-offs of implementing this change?

• A) Higher labor costs, improved customer service, and no change in warehouse costs
• B) Higher labor costs, increase in warehouse costs, and an increase in transportation costs
• C) Improved customer service, increase in warehouse storage costs, and a decrease in transportation costs
• D) Decrease in warehouse costs, increase in transportation costs, and no change in customer service