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APICS Exam CTSC Topic 2 Question 19 Discussion

Actual exam question for APICS's CTSC exam
Question #: 19
Topic #: 2
[All CTSC Questions]

When planning to reduce distribution costs, which of the following factors is important to include in the calculation?

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Suggested Answer: A

According to the CTSC Learning System, one of the factors that affects the distribution costs is the cost of implementing the new materials flow network, which includes the costs of designing, building, and operating the network of warehouses, distribution centers, and transportation modes1. The cost of implementing the new materials flow network can be significant and should be included in the calculation of the total cost of ownership (TCO) of the distribution system1. The other factors listed in the question are not directly related to the distribution costs, but rather to the inventory costs, which are a separate component of the TCO1.


by Gail at Aug 03, 2024, 06:54 AM

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Cheryl
2 months ago
Wait, is this a trick question? I'm pretty sure the answer is E) The cost of hiring a consultant to tell you the answer. That's the real hidden expense in any distribution cost reduction plan.
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Anjelica
1 months ago
C) The cost of capital in warehousing
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Luann
1 months ago
B) Projected operating cost increases for inventory control
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Jettie
1 months ago
A) Cost of implementing the new materials flow network
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Lore
2 months ago
I'm going to go with A. The cost of implementing the new materials flow network is crucial - it's like trying to build a house without considering the cost of the foundation. You can't just ignore it.
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Alexis
2 months ago
Yes, without factoring in the cost of implementing the new materials flow network, the distribution cost reduction plan may not be effective.
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Tennie
2 months ago
I agree, A is definitely an important factor to consider.
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Maryann
2 months ago
I think all options are important to consider for reducing distribution costs.
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Hubert
2 months ago
I believe C) The cost of capital in warehousing is crucial for accurate calculation.
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Carissa
3 months ago
I agree with Dean, but I also think D) The costs of excess and obsolete inventory should be considered.
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Arlette
3 months ago
B is an interesting choice, but I'm not sure it's the most important factor. Projected operating cost increases for inventory control are important, but I'd prioritize the actual costs of the new materials flow network.
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Judy
3 months ago
D seems like the most comprehensive option here. Excess and obsolete inventory can really eat into your distribution costs, and it's important to factor that in when planning for improvements.
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Antonio
2 months ago
The cost of capital in warehousing shouldn't be overlooked either, it can have a significant impact on distribution costs.
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Sherell
2 months ago
True, projected operating cost increases for inventory control are also important to consider.
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Lyla
2 months ago
But don't forget about the cost of implementing the new materials flow network, that can also add up.
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Bok
2 months ago
I agree, excess and obsolete inventory can be a major cost driver.
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Merilyn
3 months ago
I think the answer is C. The cost of capital in warehousing is a crucial factor to consider when trying to reduce distribution costs. It's like trying to save money by skimping on the gas tank - you'll end up spending more in the long run.
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Willis
2 months ago
Yes, it's crucial to take into account all the costs involved in order to make an informed decision.
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Trina
2 months ago
I agree, the cost of capital in warehousing is definitely an important factor to consider.
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Lavera
2 months ago
D) The costs of excess and obsolete inventory
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Ramonita
2 months ago
C) The cost of capital in warehousing
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Oretha
2 months ago
B) Projected operating cost increases for inventory control
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Isadora
2 months ago
C) The cost of capital in warehousing
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Hubert
3 months ago
B) Projected operating cost increases for inventory control
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Cammy
3 months ago
A) Cost of implementing the new materials flow network
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Lynsey
3 months ago
A) Cost of implementing the new materials flow network
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Dean
3 months ago
I think A) Cost of implementing the new materials flow network is important.
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