The "Total Cost Approach" to Physical Distribution Management

question 91

Multiple Choice

The "total cost approach" to physical distribution management:

• A) seeks to eliminate the storing function.
• B) seeks to minimize the cost of transportation.
• C) might suggest a high-cost transporting mode if storing costs could be reduced enough to lower total distribution costs.
• D) ignores inventory carrying costs.
• E) All of the above.

---

Definitions:

Lease-Purchase Analysis

A financial evaluation method to determine the financial advantage between leasing and purchasing an asset.

Lease Payment

The payments made under a lease agreement for the use of an asset, typically paid at regular intervals.

Lease-Purchase Analysis

An evaluation process to determine whether leasing or purchasing assets is more cost-effective for a business or individual.