Question: Order processing, inventory, transportation, warehousing, materials handling, packaging and facility network design are the fundamental logistical functions. Systems analysis, applied to logistics, seeks to quantify
Order processing, inventory, transportation, warehousing, materials handling, packaging and facility network design are the fundamental logistical functions. Systems analysis, applied to logistics, seeks to quantify trade-offs among those functions. The goal of systems analysis methodology is to create a synergistic or integrated effort greater than the sum of the individual parts or functions. Consider a logistics network where W is the number of facilities (warehouses). Draw in one graph (e.g., using MS PowerPoint) the approximate relationship between W and the total inventory cost (call this cost curve I), W and the total transportation cost (call this cost curve T), and W and the total network cost (call this cost curve N, noticing that N is the sum of I and T for each value of W). The x-axis of your graph should show W, and the y-axis should show the total cost. Discuss how they change as W increases for these three cost curves (N, I, and T).
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