How does the physical integration of processes reduce costs?
A)It reduces transportation costs, investment in work in progress, and delays due to transport problems.
B)It reduces the workforce required to take care of the facilities
C)It reduces managerial fixed costs
D)All of the above

Question

Quizplus · Accepted Answer

By physically integrating processes, the need for transportation of raw materials and work in progress is reduced, which in turn reduces transportation costs and delays due to transport problems. This can result in significant cost savings for the business.

How Does the Physical Integration of Processes Reduce Costs