Consider one of the 7R's and analyze how a typical Distribution Centre would incur Preventative, Appraisal, and Failure costs relating to this R. It is logical to approach the assignment by first considering the impact of the failure, both direct and indirect actions and their costs, then analyzing the possible modes or causes of the failure so that you are able to then consider the costs of preventing that failure from happening again, which will then allow you to consider the costs of inspecting or appraising if the measures you implemented are working.