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APICS CLTD Exam - Topic 4 Question 114 Discussion

Actual exam question for APICS's CLTD exam
Question #: 114
Topic #: 4
[All CLTD Questions]

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?

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Suggested Answer: D

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Bea
18 days ago
But non-stackable bins? That sounds inefficient.
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Clay
23 days ago
60% cost reduction is huge!
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Gilberto
1 month 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.
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Graciela
1 month 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?
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Christoper
2 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.
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Kattie
2 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.
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