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.

What are trade-offs in logistics?

Trade-offs are compensatory exchanges between the increase of some logistics costs and the reduction of other logistics costs and/or an increase in the level of customer service.

What is the most important element of logistics?

A major element of logistics that most will recognise is transport. This includes all modes of transport including road vehicles, freight trains, cargo shipping and air transport. Without transport, goods would be unable to move from one stage to another within a supply chain.

What is significance of the logistics industry?

How do logistics companies work? True business logistics makes organizations leaner and more profitable. It grants broader visibility over the movement of merchandise from construction to consumption, identifying infrastructure and operational practices that help or hinder that smooth, cost-effective distribution.

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What is the main trade-off in supply chain management?

The trade-off has always been the cost of transportation, as well as the added risk of globalizing, complicated by ecolog- ical issues. Supply chains make participants more competitive, in part, leading to an emphasis on services related to the products being made.

What are the trade-offs between manufacturing and logistics?

What are the tradeoffs between the two areas? Manufacturing and logistics have reciprocal attachments with each other. Both the manufacturing operations and logistics operations have potential impact on total cost of sales. How much to manufacture is always a decision making area to a manufacture company.

What is an example of a trade-off?

In economics, a trade-off is defined as an “opportunity cost.” For example, you might take a day off work to go to a concert, gaining the opportunity of seeing your favorite band, while losing a day’s wages as the cost for that opportunity.

Is the most basic component of logistics?

In its most basic form, logistics refers to the planning and execution of a complex operation. It involves planning, implementing, and overseeing the effective storage of goods and their transportation from the point of origin until the final destination (the point of consumption).

What are the 12 elements of logistics?

Terms in this set (12)

  • Design Interface.
  • Sustaining Engineering.
  • Supply Support.
  • Maintenance Planning & Management.
  • Packaging, Handling, Storage, and Transportation.
  • Technical Data.
  • Support Equipment.
  • Training & Training Support.

What is the best explanation of logistics?

Logistics is used more broadly to refer to the process of coordinating and moving resources – people, materials, inventory, and equipment – from one location to storage at the desired destination. The term logistics originated in the military, referring to the movement of equipment and supplies to troops in the field.

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What is the significance of logistics in the supply chain management?

The main role of logistics in supply chain management is primarily to increase the overall value of each delivery, which is identified by customer satisfaction. This means that the reduction and optimization of labor resources must be tied in with keeping up a certain level of quality customer service.

What are the most sought after skills for logistics professionals?

To establish a good career in logistics, we rounded up ten skills that you must work on and keep in mind at all times.

  • Forward Thinking.
  • Strong Numerical and Analytical Skills.
  • Extensive Industry Knowledge.
  • Team player.
  • Keen attention to detail.
  • Sound Decision-making.
  • Adaptability.
  • Accountability.

Why logistics is important in today’s economy?

Logistics play a crucial role in today’s economy. Improved trade logistics infrastructure such as roads & highways, ports, railways, airports including dry ports, warehousing infrastructure and labs & testing facilities are necessary for sustainable and balanced economic development of all parts of the country.

What are examples of trade-offs in supply chains?

Optimizing the logistics and supply chain often involves trade-offs.

  • Inventory versus service.
  • Large batches versus frequent runs.
  • Large orders versus small orders.
  • Local versus global sourcing.
  • Multiple depots versus a single distribution center.
  • Full loads versus LTL’s.

What are five distribution trade-offs?

The specific trade-offs variables in this study are limited to five. They are transportation cost (C), reliability (R), information systems (I), capacity (V), and insecurity (S).

What are some trade-offs that might be factors in designing a supply chain?

What are some of the trade-offs that might be factors in designing a supply chain?

  • Measuring supply chain ROI.
  • Greening the supply chain.
  • Reevaluating outsourcing.
  • Integrating IT.
  • Managing risks.

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