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APICS CLTD Exam - Topic 4 Question 114 Discussion

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?
D) Decrease in warehouse costs increase in transportation costs, and no change in customer service
A) Higher labor costs, improved customer service, and no change in warehouse costs
B) Higher labor costs: increase in warehouse costs, and an increase in transportation costs
C) Improved customer service, increase in warehouse storage costs, and a decrease in transportation costs

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

by Susana at Apr 06, 2026, 10:15 AM

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Shalon
That's a huge cost reduction on packaging!
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Ines
5 days ago
I think transportation costs will definitely go up.
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Vicky
10 days ago
I agree, higher labor costs are likely with this change.
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Michal
15 days ago
Really? No change in customer service? I doubt that.
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Bea
2 months ago
But non-stackable bins? That sounds inefficient.
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Clay
2 months ago
60% cost reduction is huge!
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Gilberto
3 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.
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Graciela
3 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?
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Christoper
3 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
3 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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