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).

one graph plus about 300 words

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