BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

Target Test Prep · GMAT

Choose how you want to prepare

Learn live with an expert or move at your own pace. Every option includes the complete TTP study system.

★★★★★5.0559 reviews
GMATBootcamp Starts Sep 21
Chris Peckover, Target Test Prep GMAT expert
LIVE ONLINE BOOTCAMP

Live Online Bootcamp Class with Top GMAT Expert Chris Peckover

Sep 21 to Oct 9, 2026

Schedule
Mon to Fri · 7:00 to 10:00 PM ET
Included
Live classes + 6 months of TTP OnDemand
  • Boost your GMAT score in less than one month in a live online class
  • 6 months access to TTP OnDemand video courses included
View bootcamp & enroll
Limited cohort · enrollment openTarget Test Prep
EALiveTeach 5 seats left
Logan Thompson
EXECUTIVE ASSESSMENT

Sep 6 to Dec 6, 2026

with Logan Thompson

Schedule
Sun · 9:30 AM to 12:30 PM ET
Included
40 hours of live online classes plus six months of access to the complete TTP EA OnDemand course.
  • 165+ EA Score Guarantee
  • 4,100+ Quant, Verbal, and Integrated Reasoning practice questions
  • 400+ hours of in-depth video lessons
  • 3,000+ step-by-step video solutions
View EA class & enroll
Limited cohort · enrollment openTarget Test Prep
GMATOnDemand Start anytime
SELF-PACED MASTERCLASS

Target Test Prep GMAT OnDemand

Complete access from day one. Study on your schedule.

715+ score guarantee
$0to start then $127/mo
  • Personalized study plan and analytics
  • Thousands of lessons and practice questions

Compare the format, schedule, and included access before enrolling. Prices and seat counts shown reflect the supplied offer details.

Argument Essay: Please Review

Expert replies
by ssp » Mon Aug 23, 2010 1:04 pm
AWA ESSAYS: Analyze Argument
ESSAY QUESTION:
The following memo was circulated by the management team of a retail company:

"We are very pleased to announce that the relocation of our inventory, which had been located in four different warehouses throughout the country, to a single new warehouse near Company headquarters in Boston. This consolidated location will cut the company's expenses for warehouse rent in half. As a result we expect our monthly profitability to go up by this amount."

Discuss how well reasoned you find this argument. Point out flaws in the argument's logic and analyze the argument's underlying assumptions. In addition, evaluate how supporting evidence is used and what evidence might counter the argument's conclusion. You may also discuss what additional evidence could be used to strengthen the argument or what changes would make the argument more logically sound.

In the argument above, the management team concludes that the company's monthly profitability will increase by the amount saved from consolidating the company's four warehouses into one. The premise of the argument is that the consolidation will cut the company's expenses in half. However, the argument is flawed because it falsely assumes that other variable operating costs will not increase as a result of this consolidation and that a warehouse near company headquarters is ideal.

First, the argument falsely assumes that other expenses will not increase as a result of the warehouse consolidation. For example, Amazon owns multiple warehouse locations around the country to reduce shipping costs and shipping time. Although fixed costs are higher with multiple warehouse locations, the company is able to offset these fixed costs with lower shipping costs. If a customer orders a book in New York City, Amazon does not ship the book from its Seattle warehouse. Amazon is actually able to ship the book from its New York City warehouse, thereby reducing the shipping costs incurred by the company.

Second, the reasoning in the argument is flawed because it implies that retaining the warehouse location near company headquarters is preferred to retaining other warehouse locations. This reasoning could be very costly. If the company has manufacturers in China, it would be illogical for the company to ship all the product out to Boston. For example, Apple Inc. builds most of its products in Taiwan and China. Apple actually have fewer warehouses in America than it does in China. Most consumer online purchases are shipped directly from manufacturing warehouses in China. Thus, the company should not assume that retaining the Boston location is preferred simply because it is located near company headquarters.

Moreover, the argument could be improved by indicating that the retail company has fixed shipping contracts with its shipping companies. This would then eliminate the possibility that expenses would increase as a result of the warehouse consolidation. Additionally, the retail company could state that the Boston warehouse location is optimal because the warehouse is close to the company's primary manufacturer. This hypothetical evidence could even suggest that shipping costs from the manufacturer to the warehouse could be reduced in addition to the shipping costs from warehouse locations to consumers or resellers.

In conclusion, the argument is flawed because it assumes that fewer warehouse locations will reduce overall operating expenses, leading to an increase in monthly profitability. Moreover, the argument wrongly concludes that situating the warehouse near company headquarters is the ideal business strategy. The argument can be made stronger with the improvements described above.
Join the discussion
Source: — GMAT Essays (AWA) |

by saurabhmahajan » Fri Aug 27, 2010 3:46 am
Hey ssp, nice work man.
i think it was precise with clear examples....
Thanks and regards,
Saurabh Mahajan

I can understand you not winning,but i will not forgive you for not trying.
Join the discussion

• Page 1 of 1