The two criteria for establishing a particular physical distribution system are:
A) cost of the system and service level desired
B) service level and cost of carrying inventory
C) cost of transportation and cost of warehousing
D) cost of transportation and materials handling
E) cost of warehousing and cost of inventory.

Question

Quizplus · Accepted Answer

The two main criteria for establishing a particular physical distribution system are the cost of the system and the service level desired. These factors are crucial because they directly impact the efficiency and effectiveness of the distribution system, balancing operational costs with customer satisfaction and delivery performance.

The Two Criteria for Establishing a Particular Physical Distribution System