The Best Way to Reduce Overall Distribution Costs Is to

question 146

Multiple Choice

The best way to reduce overall distribution costs is to

• A) use a total-cost approach to analyze and evaluate the entire system.
• B) minimize the costs associated with materials handling and transportation.
• C) reduce the number of distribution functions that are necessary.
• D) find the cheapest price for each function and use them to create the system.
• E) lower the service standards that the company has.

---

Definitions:

Normal Good

A normal good is a type of good for which demand increases as the income of individuals increases, holding all else constant.

FDA

The Food and Drug Administration, a federal agency of the United States responsible for protecting and promoting public health through the control and supervision of food safety, tobacco products, dietary supplements, prescription and over-the-counter pharmaceutical drugs, vaccines, biopharmaceuticals, blood transfusions, medical devices, electromagnetic radiation emitting devices, cosmetics, animal foods & feed and veterinary products.

Price of Pretzels

The amount of money required to purchase a specific quantity of pretzels, influenced by factors such as production costs and market demand.

Number of Buyers

Refers to the overall or potential quantity of consumers or entities in the market willing to purchase goods and services.