A firm offers their customers shorter order cycle times and increased product variety. Generally, this action would have which of the following impacts on total logistics costs?
A) Increases total logistics costs
B) Reduces total logistics costs
C) Has no impact on total logistics costs
D) Only affects service levels, not costs

Question

Quizplus · Accepted Answer

Shorter order cycle times and increased product variety generally require more frequent and smaller shipments, which can increase transportation and inventory carrying costs, therefore leading to an increase in total logistics costs.

A Firm Offers Their Customers Shorter Order Cycle Times and Increased