Final answer:
The correct answer is d) Affected by supplier performance. The cost of holding inventory incurred by the shipper's supply chain network can be affected by supplier performance.
Step-by-step explanation:
The cost of holding inventory incurred by the shipper's supply chain network can be affected by supplier performance. If suppliers are able to deliver goods in a timely and efficient manner, the shipper can reduce the amount of inventory they need to hold, thereby lowering their holding costs. On the other hand, if suppliers are unreliable or have long lead times, the shipper may need to maintain higher levels of inventory, increasing their holding costs.
The cost of holding inventory incurred by a shipper's supply chain network is affected by supplier performance, not directly tied to transportation costs, order cycle time, or independent of transportation costs. Factors such as shipping congestion and transportation accessibility can influence both transportation costs and inventory holding costs. For example, a messenger company operating in a city will experience higher transportation costs if it needs to navigate congested streets, which can affect the overall efficiency of the supply chain and increase inventory holding costs due to longer delivery times. Conversely, access to uncrowded transportation networks can lower costs and increase profitability by allowing for more efficient movement of goods.