Question

Poor roads and theft en route to and from warehouses in China make transporting product hazardous. This best demonstrates which of the following factors that contributes to distribution costâ differences?
A.
Levels in a distribution system
B.
Retail inefficiencies
C.
Inventory stock outs
D.
Size and operating hour restrictions
E.
Infrastructure conditions

Answer 1

Answer:

E. Infrastructure conditions

Explanation:

Based on the information provided it can be said that the factor that mostly contributes to distribution cost differences in this scenario would be Infrastructure conditions. That is because the different conditions of the infrastructure in the geographical location where distribution is handled, such as the poor roads in this example add extra costs to the process of distribution as opposed to locations with better conditions.