APICS Exam CLTD Topic 3 Question 78 Discussion

Actual exam question for APICS's CLTD exam

Question #: 78
Topic #: 3

[All CLTD Questions]

Compared to a centralized distribution network strategy, an organization using a decentralized distribution network strategy can usually expect:

Alower cost of lost sales and higher inventory cost.

Bhigher cost of lost sales and higher inventory cost.

Clower cost of transportation and lower warehousing cost.

Dhigher cost of transportation and lower warehousing cost.

Show Suggested Answer

Suggested Answer: A

by Catherin at May 22, 2024, 10:34 AM

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Ruthann

14 minutes ago

Hmm, this is a tricky one. Maybe I should just flip a coin and hope for the best. Or maybe I can bribe the exam proctor. Just kidding! I'll keep thinking it through.

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Eveline

8 days ago

Option B seems more plausible to me. Decentralization can lead to increased costs for lost sales and higher inventory levels. It's a trade-off between efficiency and responsiveness.

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Jaime

9 days ago

I'm not so sure about that. Shouldn't a decentralized strategy mean higher inventory costs across multiple locations? I'll have to think this through more carefully.

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Ayesha

12 days ago

I'm not sure, but I think the answer might be A.

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Ligia

13 days ago

Hmm, I think option C is the correct answer. A decentralized network usually means more distribution centers, which can lead to lower transportation costs and reduced warehousing expenses.

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Norah

17 days ago

I disagree, I believe the answer is D.

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Miriam

20 days ago

I think the answer is C.

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