A logistics company is designing a new delivery route optimization system. The primary goal is to minimize fuel costs while maintaining a 95% on-time delivery rate. The available options are: (1) Upgrade GPS software (cost $10k, 3 months to implement, potential 8% fuel savings), (2) Reconfigure warehouse layout (cost $50k, 6 months to implement, potential 15% fuel savings), (3) Implement driver training on efficient driving (cost $5k, 1 month to implement, potential 3% fuel savings), or (4) Purchase a new fleet of electric vehicles (cost $500k, 12 months to implement, 50% fuel savings). Which is the most effective *initial* step to achieve the goal within a 4-month timeframe?

The correct answer to the question "A logistics company is designing a new delivery route optimization system. The primary goal is to minimize fuel costs while maintaining a 95% on-time delivery rate. The available options are: (1) Upgrade GPS software (cost $10k, 3 months to implement, potential 8% fuel savings), (2) Reconfigure warehouse layout (cost $50k, 6 months to implement, potential 15% fuel savings), (3) Implement driver training on efficient driving (cost $5k, 1 month to implement, potential 3% fuel savings), or (4) Purchase a new fleet of electric vehicles (cost $500k, 12 months to implement, 50% fuel savings). Which is the most effective *initial* step to achieve the goal within a 4-month timeframe?" is Option C: Implement driver training on efficient driving.

The other options — A) Upgrade GPS software, B) Reconfigure warehouse layout, D) Purchase a new fleet of electric vehicles — are incorrect for this GMAT Exam Prep question. As explained above: Driver training is the only option that can be fully implemented within the 4-month timeframe (1 month), offering immediate fuel savings. Other options exceed the timeframe or are too costly for an i…