The senior management team at PlastiPharm is exploring the possibility of adding one or more…

The senior management team at PlastiPharm is exploring the possibility of adding one or more distribution centers on the east coast of the United States to improve customer service to different regions. During the analysis, the company reviewed more than just transportation costs but additionally looked at costs of inventory carrying, warehouse, order processing, and poor customer service. Which of the following statements best explains why the company would take into account all of these factors?

  • Considering all factors enabled the company to determine if customer service in different regions of the country would increase.
  • Taking into account all the factors meant that the company was continually looking for ways to minimize separate costs for each department.
  • By looking at all the costs, the company could optimize its entire logistics system and determine the total cost impact.
  • The company needed to make sure it coordinated its decision with key decision makers to ensure they were all engaged and supportive

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