APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 95

Which of the following factors would be considered of strategic importance to a firm's logistics function?

Answer options

• A. A firm operates in a competitive oligopoly
• B. Total cost of production
• C. Production lead time
• D. Order cycle time

Correct answer: A

Explanation

The correct answer is A, as operating in a competitive oligopoly influences a firm's logistics strategy due to the need to maintain a competitive edge. The other options, while important to logistics, are more operational and tactical rather than strategic in nature.