Question

If you add a new distribution point, what other activities/costs will be affected?

a) transportation
b) inventory
c) warehousing
d) order process
e) customer service
f) all of the above

Answer 1

Adding a new distribution point can affect transportation, inventory, warehousing, order processes, and customer service.

Step-by-step explanation:

Adding a new distribution point can affect several activities and costs:

1. Transportation: With a new distribution point, transportation costs may change. For example, if the new distribution point is closer to customers, it may reduce the cost of shipping goods to them.
2. Inventory: The addition of a new distribution point can impact inventory management. It may require additional inventory at the new location and lead to changes in stock levels.
3. Warehousing: A new distribution point may require additional warehousing space to store and manage inventory.
4. Order Processes: The introduction of a new distribution point can affect order processes, including order management, fulfillment, and tracking.
5. Customer Service: Adding a new distribution point may impact customer service, such as delivery times and responsiveness to customer inquiries.

Therefore, the correct answer is (f) all of the above.