Which statement reflects reducing costs in logistics?

Effective inventory management reduces holding costs is the correct choice as it addresses a fundamental principle in logistics: the balance between supply and demand. Holding costs encompass various expenses associated with storing unsold goods, including warehousing, insurance, taxes, and depreciation. By effectively managing inventory, organizations can minimize excess stock, leading to reduced holding costs. This is particularly important, as lower holding costs directly contribute to improving a company's bottom line.

The other options do not support the goal of reducing costs in logistics. Higher shipping rates do not align with cost reduction, as they typically represent increased expenses. Maximizing transportation options might increase logistical efficiency, but it often leads to higher overall costs unless carefully managed. Finally, while larger warehousing space can provide more storage capacity, it may not always be beneficial in terms of cost if it leads to increased operational expenses, underutilization, or inefficient inventory management. Therefore, the focus on effective inventory management in the correct choice highlights a strategic approach to cost reduction in logistics.