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Douglas Craven Is the Physical Distribution Manager for Custom Chrome

Question 31

Multiple Choice

Douglas Craven is the physical distribution manager for Custom Chrome, a company that manufactures Over 9,500 chrome engine parts for motorcycles. To implement the total cost concept, Craven should:


A) consider physical distribution as a materials-flow problem.
B) distribute only to areas with a large number of motorcycle owners.
C) use the lowest-cost transportation consistent with safe handling of chrome engine parts.
D) strive to determine the set of activities that produces the best relationship between costs and profits for . the entire physical distribution system.
E) use air freight and thus eliminate warehousing costs.

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