The manager of each physical distribution function attempts to minimize costs. However, due to the impact of one physical distribution task on the other, he/she obtains less than optimal results. What is this condition called?
A) slow order processing
B) suboptimization
C) inventory fluctuations
D) poor customer service standard

Question

Quizplus · Accepted Answer

Suboptimization occurs when the optimization of a part of a system or organization leads to suboptimal outcomes for the whole system or organization. In the context of physical distribution, focusing on minimizing costs in one area without considering its impact on other areas can lead to less than optimal overall results.

The Manager of Each Physical Distribution Function Attempts to Minimize