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Exam CSCP topic 1 question 458 discussion

Actual exam question from APICS's CSCP
Question #: 458
Topic #: 1
[All CSCP Questions]

A company is transitioning its fulfillment strategy from direct consumer shipment to shipping through an intermediary. Which of the following impacts can be expected?

  • A. Higher transportation costs
  • B. Higher warehousing costs
  • C. Lower transportation costs
  • D. Lower warehousing costs
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Suggested Answer: B 🗳️

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yassernaga
2 weeks ago
B: Direct shipment means small consignments which leads to higher the transportation costs when using an intermediary it does not mean to reduce the transportation cost but it means consolidating the shipments or need a waiting area (warehousing) so it will increase the warehousing cost
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Rajiv8047
5 months, 3 weeks ago
Selected Answer: C
Lower transportation costs.
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igrd
1 year ago
Selected Answer: C
Transitioning from direct consumer shipment to shipping through an intermediary can be expected to result in lower transportation costs. Direct-to-consumer shipment involves shipping individual orders directly to customers, which can be more expensive than shipping in bulk to an intermediary, such as a retailer or distributor, who then handles the final delivery to customers. By consolidating shipments to fewer locations, the company can take advantage of economies of scale and negotiate lower transportation rates.
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A (35%)
C (25%)
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