APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 126

The most important reason for an organization to consider a logistics network redesign is the change in:

Answer options

• A. transportation rates.
• B. raw material costs.
• C. labor costs or availability.
• D. the location of demand.

Correct answer: B

Explanation

The correct answer is B because fluctuations in raw material costs can significantly impact the overall expenses and efficiency of a logistics network. While transportation rates, labor costs, and demand location are also important, changes in raw material costs are often the most critical factor that necessitates a redesign of the logistics network.