12-Interactive Saved This exercise will help you better understand how the six total logistics cost factors play into how different types of businesses operate Total logistics cost includes expenses associated with transportation, materials handling and warehousing, inventory, stockouts (being out of inventory), order processing, and return products handling. Many of these costs are interrelated, so changes in one will impact the others. For example, as the firm attempts to minimize its transportation costs by shipping in larger quantities, it will also experience an increase in inventory levels. Larger inventory levels will not only increase inventory costs but should also reduce stockouts. It is important, therefore, to study the impact on all of the logistics decision areas when considering a change. 22:57 Roll over the items to read the hints Drag and drop each item into the correct spot within the chart SC Johnson Frito Lay Ford LOGISTICS COST FACTOR Costco Transportation Kmart Warehousing & Materials Handling Safeway Order Processing Chrysler Stockouts Toyota Inventory Walgreens Return Products Handling Coca-Cola Phillips Hyundai Reset