In terms of distribution costs,the total system should be designed to minimize costs for a given level of service.Which of the following is a major distribution cost that needs to be minimized?
A) Product mix cost
B) Depreciation cost
C) Packaging cost
D) New customer cost

Question

In terms of distribution costs,the total system should be designed to minimize costs for a given level of service.Which of the following is a major distribution cost that needs to be minimized?
A) Product mix cost
B) Depreciation cost
C) Packaging cost
D) New customer cost

Quizplus · Accepted Answer

The major distribution costs to be minimized are transportation, order processing, cost of lost business, inventory carrying costs, packaging, and materials handling.

In Terms of Distribution Costs,the Total System Should Be Designed