The Two Areas In Logistics Systems Where Most Energy Costs Occur Are ____ And ____.?

The two areas in logistics systems where most energy costs occur are warehousing and transportation. Explanation: Warehousing and transportation are two important elements of logistics and the supply chain management.

What are the two primary cost categories of logistics?

Shipping and storage expenses represent the two major types of logistics costs. Once you find a source for your product or raw materials, you need to pay a freight company to deliver it.

What are the two basic organizational structures associated with logistics?

Two basic organizational structures for logistics departments are:

  • Centralized logistics organization.
  • Decentralized logistics organization.

What is often the largest component of logistics costs quizlet?

Terms in this set (209) What is often the largest components of logistics costs? The product’s dollar value typically affects the cost of logistics activities.

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Which of the following best describes the two parts of the value chain — the supply and demand components?

Which of the following best describes the two parts of the value chain- the supply and demand components? The supply component starts at raw material and ends in the organization. The demand component is from delivery of output to the final customer.

What are the two main types of costs involved in marketing logistics?

In logistics cost analysis, we use two types of costs: fixed (or standing, capital) costs versus variable (or running, operational, recurrent) costs. Fixed costs are costs that do not vary with quantity or volume of output provided in the short run (typically, one year). These costs usually vary with time.

What are logistics costs?

Logistics costs are all of the expenses incurred moving product — from sourcing raw materials to delivering customer orders and every step in between.

Which is generally the most costly logistics activity?

Cost ratio of logistics items This analysis shows transportation is the highest cost, which occupies 29.4% (one-third) of logistics costs, and then in order by inventory, warehousing cost, packing cost, management cost, movement cost and ordering cost.

What is meant by the total cost approach to logistics?

Total cost approach focuses on considering all of the relevant activities in moving and storing products, instead of looking at things individually; this way all logistical cost items are considered simultaneously when making a decision.

In which Organisation structure multiple logistics activities are combined into and managed as a single department?

In a unified logistics structure, multiple logistics activities are combined into, and managed as, a single department. The unified structure can be further classified based on the number and type of activities assigned to the department.

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What is often the largest component of logistic costs?

Transportation costs, the largest component of logistics costs, are largely composed of trucking costs. Intercity and local trucking make up a combined total of nearly 80%, which is more than 10 times as large as the second largest mode, railroads.

What is the most significant trade off specific to logistics?

The most common trade-off that occurs in the logistics functions is the transportation cost and inventory cost.

How does logistics add value for firms?

Logistics adds value by taking better advantage of various locations, implying access to expanded markets (more customers), and lower distribution costs.

What is value chain and supply chain?

Key Takeaways. The value chain is a process in which a company adds value to its raw materials to produce products eventually sold to consumers. The supply chain represents all the steps required to get the product to the customer.

What are the differences of supply chain and value chain?

To recap: the Supply chain is the process between producing and distributing the product, dealing with the suppliers and logistics of getting the product to market; the Value chain is a set of activities carried out by the company which maximises the competitive advantage.

What are the types of value chain?

Types of Value Chain Governance

  • Market. Market governance involves transactions that are relatively simple, information on product specifications is easily transmitted, and producers can make products with minimal input from buyers.
  • Modular.
  • Relational.
  • Captive.
  • Hierarchy.

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