Question: Why does customer service not increase proportionately to increases in
Why does customer service not increase proportionately to increases in total cost when a logistical system is being designed?
Answer to relevant QuestionsDiscuss the differences between improving customer service through faster and more consistent transportation, higher inventory levels and/or expanded numbers of warehouses. What is the basic objective in a logistics design and analysis study? Is it normally a one-time activity? In the Subway situation described earlier, describe the trade-offs associated with: a. Consolidating the meat and vegetable preparation facilities and b. Use of multi-temperature transportation vehicles. What are the major considerations for initiating a logistics alliance? In implementation? In maintenance? Compare and contrast the contribution approach with the net profit approach in cost/revenue analysis.
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