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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