APICS Certified Supply Chain Professional (CSCP) — Question 313

The implementation of a distribution warehouse network typically will reduce which of the following types of costs?

Answer options

• A. Transportation
• B. Packaging
• C. Material handling
• D. Inventory carrying

Correct answer: A

Explanation

Establishing a distribution warehouse network allows for more efficient routing and delivery of goods, which leads to lower transportation costs. The other options, such as packaging, material handling, and inventory carrying, may not see a significant reduction as a direct result of the warehouse network implementation.