Transportation in a Supply Chain - Tailored Transportation
3 important questions on Transportation in a Supply Chain - Tailored Transportation
Wthat is tailored transportation by customer density and distance?
Firms must consider customer density and distance from warehouse when designing transportation networks, High density customers close to DC, best for firm to have own fleet of trucks with milk runs.
What is tailored transportation by Size of Customer?
Firms consider customer size and location when designing transportation networks. Using milk runs, shipper two types of costs:
- transportation cost based on total route distance
- delivery cost based on number of deliveries
What is tailored transportation by Product Demand and Value?
degree of inventory aggregation and the modes of transportation used in a supply chain network should vary with the demand an value of a product.
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