A Merchant Wholesaler Is Considering Four Physical Distribution Systems and Estimates

Multiple Choice

A merchant wholesaler is considering four physical distribution systems and estimates the total cost and customer service level for each as follows: $\begin{array}{l}\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { TOTAL COST } \quad \text { CUSTOMER SERVICE LEVEL }\\\begin{array} { l r r } \text { Airfreight } &\quad\quad \$ 1,000,000 &\quad\quad 90 \% \\\text { Inland waterways } & 250,000 & 50 \% \\\text { Truck } & 300,000 & 60 \% \\\text { Rail and warehouse } & 425,000 & 70 \%\end{array}\end{array}$ The best alternative is:

A) truck.
B) airfreight.
C) rail and warehouse.
D) inland waterways.
E) Cannot be determined without knowing how the target customers feel about the customer service level.