APICS Certified Supply Chain Professional (CSCP) — Question 118

Which of the following criteria are important when establishing a warehouse distribution system?

Answer options

• A. Cost of the overall system and service level desired
• B. Material and handling costs and proximity to customers
• C. Transportation costs and material handling costs
• D. Service level desired and local presence

Correct answer: C

Explanation

The correct answer is C because transportation costs and material handling costs directly impact the efficiency and effectiveness of a warehouse distribution system. Options A, B, and D, while relevant, do not specifically address the core financial aspects that are critical for managing a distribution system effectively.