APICS Certified Supply Chain Professional (CSCP) — Question 177

A company wants to establish a warehouse to serve a new market. Which of the following warehouse ownership arrangements will provide the best combination of low cost and high operational flexibility?

Answer options

• A. Private
• B. Public
• C. Contract
• D. Network

Correct answer: C

Explanation

The Contract warehouse ownership arrangement is ideal for balancing low costs with high flexibility, as it allows companies to use warehouse space without the long-term commitment or overhead of owning a facility. The other options, such as Private and Public, may involve higher costs or less adaptability to changing market demands.