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APICS CLTD Exam - Topic 1 Question 22 Discussion

In an effort to increase their customer service levels and reduce order cycle time, a company is considering adding two additional warehouses to their overall operations. As a result, which of the of the following statements best reflects the cost impact of the additional warehouses?
A) Lower inventory costs and higher facility costs
B) Higher inventory costs and lower facility costs
C) Higher inventory costs and higher inbound transportation costs
D) Lower inventory costs and lower inbound transportation costs

APICS CLTD Exam - Topic 1 Question 22 Discussion

Actual exam question for APICS's CLTD exam
Question #: 22
Topic #: 1
[All CLTD Questions]

In an effort to increase their customer service levels and reduce order cycle time, a company is considering adding two additional warehouses to their overall operations. As a result, which of the of the following statements best reflects the cost impact of the additional warehouses?

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Suggested Answer: A

by Loren at May 10, 2022, 01:18 AM

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Shenika
8 months ago
Lower inventory costs? Not so sure about that one!
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Tegan
8 months ago
Definitely higher facility costs with two more warehouses.
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Jesusita
9 months ago
Wait, are we sure it’ll lower transportation costs? Seems sketchy.
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Mireya
9 months ago
Totally agree, more warehouses = more stock to manage!
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Werner
9 months ago
I think adding warehouses usually means higher inventory costs.
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Cristal
9 months ago
I'm pretty sure the answer is C, but I'll double-check the details just to be sure.
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Shelia
9 months ago
Wait, I'm confused. Wouldn't adding a lifecycle rule be the easiest way to handle this? That way, the cached copies would be automatically removed without having to do any manual invalidation. I'm not sure if that's the "minimum number of commands" they're looking for, though.
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Izetta
9 months ago
Hmm, this is a tricky one. The description mentions fire, shock, and electrical charge, so I'm thinking it might be related to some kind of explosion or detonation, but I'm not totally sure.
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