A Logistic Team Has Developed New Packaging for Their Best-Selling

Multiple Choice

A logistic 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?

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
D) Decrease in warehouse costs, increase in transportation costs, and no change in customer service