APICS Exam CLTD Topic 3 Question 78 Discussion

Actual exam question for APICS's CLTD exam

Question #: 78
Topic #: 3

[All CLTD Questions]

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

Alower cost of lost sales and higher inventory cost.

Bhigher cost of lost sales and higher inventory cost.

Clower cost of transportation and lower warehousing cost.

Dhigher cost of transportation and lower warehousing cost.

Show Suggested Answer

Suggested Answer: A

by Catherin at May 22, 2024, 10:34 AM

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Svetlana

3 months ago

I'd go with option D - higher cost of transportation and lower warehousing cost. That way, I can work on my stand-up comedy routine while stuck in traffic between all those distribution centers!

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Annamae

1 months ago

But don't forget about the potential for higher transportation costs with a decentralized network. It's a trade-off for sure.

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Loise

1 months ago

Yeah, I agree. Having lower warehousing costs can really help save money in the long run.

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Chuck

2 months ago

I think option D makes sense too. It's all about finding the right balance between transportation and warehousing costs.

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Ruthann

3 months ago

Hmm, this is a tricky one. Maybe I should just flip a coin and hope for the best. Or maybe I can bribe the exam proctor. Just kidding! I'll keep thinking it through.

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Eveline

3 months ago

Option B seems more plausible to me. Decentralization can lead to increased costs for lost sales and higher inventory levels. It's a trade-off between efficiency and responsiveness.

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Aaron

2 months ago

But it can also improve responsiveness to customer demands.

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Ilona

3 months ago

I agree, decentralization can result in higher costs for lost sales.

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Jaime

3 months ago

I'm not so sure about that. Shouldn't a decentralized strategy mean higher inventory costs across multiple locations? I'll have to think this through more carefully.

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Ayesha

3 months ago

I'm not sure, but I think the answer might be A.

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Ligia

3 months ago

Hmm, I think option C is the correct answer. A decentralized network usually means more distribution centers, which can lead to lower transportation costs and reduced warehousing expenses.

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Norah

3 months ago

I disagree, I believe the answer is D.

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Miriam

3 months ago

I think the answer is C.

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