MENU
A logistics team has developed new packaging for their best-selling product that reduces the packaging costs by 60% and the overall package size by 25%. The material can no longer be stacked on pallets and must be shipped and stored in non-stackable, returnable plastic bins. Which of the following statements bests represents the potential trade-offs of implementing this change?
Suggested Answer: D
Get Premium CLTD Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
20 comments · newest first
ME
Meaghan
1 month ago
Definitely B. Higher labor and transportation costs are expected with new bins.
AL
Alida
1 month ago
But can we really ignore the increase in warehouse storage costs?
GI
Gilberto
2 months ago
Option C could work too. Decrease in transportation costs is appealing.
BE
Bea
2 months ago
A has no change in warehouse costs, which seems unrealistic.
UL
Ula
2 months ago
I agree, but what about option A? Improved customer service sounds good.
LE
Leigha
2 months ago
I think option B makes the most sense. Higher labor costs are likely.
LE
Leslee
2 months ago
Totally agree with B! It covers all the bases.
MI
Mickie
2 months ago
Really? I doubt the transportation costs will actually decrease.
CO
Cordelia
3 months ago
I think B makes the most sense with higher labor and transport costs.
KI
Kindra
3 months ago
But what about the environmental impact of those plastic bins?
SH
Shalon
3 months ago
That's a huge cost reduction on packaging!
IN
Ines
3 months ago
I think transportation costs will definitely go up.
VI
Vicky
3 months ago
I agree, higher labor costs are likely with this change.
MI
Michal
4 months ago
Really? No change in customer service? I doubt that.
BE
Bea
5 months ago
But non-stackable bins? That sounds inefficient.
CL
Clay
5 months ago
60% cost reduction is huge!
GI
Gilberto
6 months ago
I recall that improved customer service usually comes with higher costs somewhere else. I’m leaning towards option A, but I’m not entirely confident about the warehouse costs.
GR
Graciela
6 months ago
I’m a bit confused about how the decrease in package size affects warehouse storage costs. I thought smaller packages would save space, but maybe not with the new bins?
CH
Christoper
6 months ago
I think we practiced a similar question where we had to weigh labor costs against customer service improvements. I feel like option B might be the right choice here.
KA
Kattie
6 months ago
I remember discussing how switching to non-stackable bins could lead to higher transportation costs, but I'm not sure if that means warehouse costs would also increase.