Douglas Craven is the physical distribution manager for Custom Chrome, a company that manufactures Over 9,500 chrome engine parts for motorcycles. To implement the total cost concept, Craven should:
A) consider physical distribution as a materials-flow problem.
B) distribute only to areas with a large number of motorcycle owners.
C) use the lowest-cost transportation consistent with safe handling of chrome engine parts.
D) strive to determine the set of activities that produces the best relationship between costs and profits for . the entire physical distribution system.
E) use air freight and thus eliminate warehousing costs.

Question

Quizplus · Accepted Answer

Craven should aim to optimize the entire physical distribution system by balancing costs and profits, which is the essence of the total cost concept.

Douglas Craven Is the Physical Distribution Manager for Custom Chrome