The logistics manager of a major manufacturer is aware that there is a lack of communication and coordination among the physical distribution departments that he is overseeing.Specifically,the materials handlers are lobbying upper management for a packaging system that would make their department more efficient; but it would increase costs for other departments exponentially because of the adjustments they would need to make to accommodate the new packaging system.There is certainly room for discussion on the matter for the future but,for now,the manager has to ward off a problem that threatens to be serious.What is the manager's concern?

Question

The logistics manager of a major manufacturer is aware that there is a lack of communication and coordination among the physical distribution departments that he is overseeing.Specifically,the materials handlers are lobbying upper management for a packaging system that would make their department more efficient; but it would increase costs for other departments exponentially because of the adjustments they would need to make to accommodate the new packaging system.There is certainly room for discussion on the matter for the future but,for now,the manager has to ward off a problem that threatens to be serious.What is the manager's concern?​

Quizplus · Accepted Answer

The manager's concern is suboptimization, which is choosing a solution that benefits one department but harms another department or the overall company. The materials handlers' lobbying for a packaging system that increases costs for other departments is an example of suboptimization. The manager needs to find a solution that benefits all departments and the company as a whole.

The Logistics Manager of a Major Manufacturer Is Aware That