Transportation in a Supply Chain - Trade-Offs in transportation Design
4 important questions on Transportation in a Supply Chain - Trade-Offs in transportation Design
Give the two trade-offs which managers should consider when making transport decisions
- Transportation and inventory cost trade-off
- Transportation cost and customer responsiveness trade-off
Which two decisions belong to the trade-off between transportation and inventory cost?
- Choice of transportation mode, planning and operational decision
- Inventory aggregation, reduce safety stock when aggregating inventories in one location
For what do managers have to account when selecting a mode of transportation?
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In what results temporal aggregation of demand and what is it used for?
Results in a reduction of transportation costs, larger shipments and reduces variation in shipment sizes. But it hurts customer response time.
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