Suboptimization results when managers of individual physical distribution functions seek to meet their overall customer service goal by meshing all physical distribution elements to achieve lowest total cost.

Question

Quizplus · Accepted Answer

Suboptimization occurs when managers of individual units or functions focus on their specific objectives in a way that leads to suboptimal outcomes for the overall organization, often ignoring the broader organizational goals or the interdependencies among different functions.

Suboptimization Results When Managers of Individual Physical Distribution Functions Seek