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
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