What three logistics-related costs are relevant when analyzing the choice of number of facilities in a distribution network?
A) inventory costs, production costs, and transportation costs
B) inventory costs, production costs, and facility costs
C) inventory costs, transportation costs, and facility costs
D) facility costs, production costs, and transportation costs
E) facility costs, inventory costs, and marketing costs

Question

Quizplus · Accepted Answer

When analyzing the choice of number of facilities in a distribution network, the relevant logistics-related costs are inventory costs, transportation costs, and facility costs. Production costs and marketing costs are not relevant in this context. Therefore, option C is the correct answer.

What Three Logistics-Related Costs Are Relevant When Analyzing the Choice