1. Using a GSCM total cost example, explain the concept of a cost trade-off when making a supply chain design decision.

• Cost trade-offs are very common in logistics decisions and that is why we need to consider the total costs instead of individual unit costs when evaluating the supply chain design decision.
• For instance, many companies decide that their manufacturing functions should be off-shored in order to lower labor costs. However, that will inevitably lead to higher transportation expenses.
• Please provide a detailed answer with example