Given below are two statements. One is labelled as Assertion (A) and the other is labelled as Reason (R). Assertion (A): If the firm is prepared to incur increased cost on transportation, it may be in a position to reduce its inventory cost Reason (R) : As in such a case, the firm can use the fastest mode of transport and rush the goods / stocks to the desired warehouse, unmindful of the cost of transportation In the context of the above two statements related to logistics management, which of the following options is correct 1. Both A) and R) true and R) is the correct explanation of A)2. Both A) and R) true but R) is NOT the correct explanation of A)3. A) is true but R) is false4. A) is false but R) is true

• A. 1
• B. 2
• C. 3
• D. 4