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The two criteria for establishing a particular physical distribution system are?

ID: 331372 • Letter: T

Question

The two criteria for establishing a particular physical distribution system are?

service level and cost of carrying inventory

cost of the system and service level desired

cost of transportation and cost of warehousing

cost of transportation and materials handling

cost of warehousing and cost of inventory

service level and cost of carrying inventory

cost of the system and service level desired

cost of transportation and cost of warehousing

cost of transportation and materials handling

cost of warehousing and cost of inventory

Explanation / Answer

answer is cost of the system and service level desired

since cost of the system inculdes cost of labour,land, material supplies, time, risk, oppuruntiy cost etc. in accounting term it is monetory valution of the labour,land, material supplies, time, risk, oppuruntiy cost

service level is consider for longer period of time and it depends on busniess it measures performance of system for example response time for the customer