APICS CLTD Exam - Topic 1 Question 22 Discussion

Actual exam question for APICS's CLTD exam

Question #: 22
Topic #: 1

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?

ALower inventory costs and higher facility costs

BHigher inventory costs and lower facility costs

CHigher inventory costs and higher inbound transportation costs

DLower inventory costs and lower inbound transportation costs

Show Suggested Answer

Suggested Answer: A

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

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Shenika

6 months ago

Lower inventory costs? Not so sure about that one!

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Tegan

6 months ago

Definitely higher facility costs with two more warehouses.

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Jesusita

7 months ago

Wait, are we sure it’ll lower transportation costs? Seems sketchy.

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Mireya

7 months ago

Totally agree, more warehouses = more stock to manage!

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Werner

7 months ago

I think adding warehouses usually means higher inventory costs.

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Cristal

7 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

7 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

7 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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