Final answer:
Upon identifying a reduction in shipping costs through performance index analysis, increasing shipments from Factory 123 to WHS XYZ aligns with seeking cost-effectiveness and efficiency in logistics, as supported by the concept of comparative advantage.
Step-by-step explanation:
The question posed is related to the improvement of logistics performance by assessing the cost-effectiveness of shipping from a factory to a warehouse. When considering shipping finished goods over potentially congested networks, it is critical to analyze ways to optimize transportation to reduce costs and increase profits. If the performance index suggests that there will be a reduction in shipping costs from Factory 123 to WHS XYZ, then the logical step would be to increase shipments from Factory 123 to WHS XYZ, as option (a) suggests. Comparative advantage and allocation of labor towards areas of greater efficiency, as demonstrated in the provided scenarios involving the United States and Mexico, also play a significant role in managing production and shipping strategies. Theoretically, reallocating resources according to comparative advantage leads to overall increased production and efficiency, thereby potentially reducing costs and increasing profitability.