In an Effort to Increase Their Customer Service Levels and Reduce

Multiple Choice

In an effort to increase their customer service levels and reduce order cycle time, a company is considering adding two additional warehouses to their overall operations. As a result, which of the following statements best reflects the cost impact of the additional warehouses?

A) Lower inventory costs and higher facility costs
B) Higher inventory costs and lower facility costs
C) Higher inventory costs and higher inbound transportation costs
D) Lower inventory costs and lower inbound transportation costs