CLTD Certification in Logistics, Transportation and Distribution (#28)

In an effort to increase their customer service levels and reduce order cycle time, a company is considering adding two additional warehouses to their overall operations. As a result, which of the following statements best reflects the cost impact of the additional warehouses?

Lower inventory costs and higher facility costs
Higher inventory costs and lower facility costs
Higher inventory costs and higher inbound transportation costs
Lower inventory costs and lower inbound transportation costs