A manufacturer of accessories for personal computers evaluates all the alternative systems combining order processing, transportation, inventory management, and storage. If the total cost approach is followed, which physical distribution system should the manufacturer select?
a. The one that maximizes customer service at the highest total cost.
b. The one that maximizes customer service at the lowest total cost.
c. The one that meets the customer service requirement at the lowest total cost.
d. The one that meets the customer service requirement and minimizes transportation cost.
e. The one that maximizes customer service and minimizes the cost of each individual component of physical distribution.
Answer: c. The one that meets the customer service requirement at the lowest total cost.