The Word Cost-Effective as It Relates to the Definition of Logistics

question 271

Multiple Choice

The word cost-effective as it relates to the definition of logistics management implies that

• A)while it is important to drive down logistics costs, all channel members must equally benefit financially or the chain will not function effectively.
• B)speed of delivery must be measured against increased savings.
• C)while it is important to drive down logistics costs, customer buying requirements must be a part of the equation.
• D)the need for multiple carriers always results in lower profit margins and therefore should be avoided.
• E)the choice of intermediaries should be made on their ability to perform their tasks efficiently even if additional costs must be passed on to the consumer.

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Definitions:

Raw Materials

The basic substances in their natural, modified, or semi-processed state, used as inputs to a production process for manufacturing goods.

Manufacturing Operations

Activities related to the production of goods, including the conversion of raw materials into finished products, often involving a combination of human labor, machinery, and technology.

Raw Materials Used

The basic materials and components that are consumed in the manufacturing process to produce finished goods.

Total Cost

Total cost refers to the sum of all expenses incurred in producing a product or providing a service, including both fixed and variable costs.