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Exam CLTD topic 1 question 61 discussion

Actual exam question from APICS's CLTD
Question #: 61
Topic #: 1
[All CLTD Questions]

Compared to a centralized distribution network strategy, an organization using a decentralized distribution network strategy can usually expect:

  • A. lower cost of lost sales and higher inventory cost
  • B. higher cost of lost sales and higher inventory cost.
  • C. lower cost of transportation and lower warehousing cost.
  • D. higher cost of transportation and lower warehousing cost.
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Suggested Answer: C 🗳️
by nprestel at Oct. 6, 2020, 8:58 p.m.

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nprestel
Highly Voted 4 years, 1 month ago
I believe the answer is "A." Decentralized distribution results in increased inventory at more sites and increased transportation costs. The advantage is lower cycle times and increased customer service.
upvoted 6 times
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A (35%)
C (25%)
B (20%)
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