The transportation method with the lowest shipping cost may not be selected due to its high inventory-carrying costs. This illustrates
A) economic order quantity calculations.
B) distribution standards.
C) the total-cost approach.
D) customer service.

Question

Quizplus · Accepted Answer

The total-cost approach in logistics and supply chain management emphasizes considering all relevant costs, including shipping and inventory-carrying costs, to make decisions that minimize the overall cost. This approach recognizes that the cheapest shipping option may not result in the lowest total cost due to other factors like high inventory-carrying costs.

The Transportation Method with the Lowest Shipping Cost May Not