The "Total Cost Approach" to Physical Distribution Management

question 119

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 these alternatives for the "total cost approach" are correct.

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Definitions:

Economic Development

The process by which a nation improves the economic, political, and social well-being of its people.

Low Income

Indicates earning levels that are significantly lower than the average or median income in a given region or society.

Labor Productivity

A measure of economic performance that calculates the output per unit of labor input, such as output per hour worked.

Human Capital

The collective skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.