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The Baldrick Manufacturing Company has for several years followed a policy aimed at decreasing operating costs and improving the efficiency of its distribution system.

aimed at decreasing operating costs and improving
aimed at the decreasing of operating costs and to improve
aiming at the decreasing of operating costs and improving
the aim of which is the decreasing of operating costs and improving
with the aim to decrease operating costs and to improve
Explanation:
The best choice, A, offers an adjective phrase unequivocally modifying policy and exhibiting grammatical parallelism (decreasing ... and improving). In choice B, the gerund the decreasing is not grammatically parallel with the infinitive to improve. Likewise, in C and D, the decreasing of... costs is not parallel with improving the efficiency. In E, the infinitives to decrease and to improve, while parallel, are less idiomatic than the prepositional phrase of decreasing ... and improving in modifying the noun aim. Also, with the aim... improve can easily be construed as referring to the Baldrick Manufacturing Company and so does not refer unequivocally to policy.
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