Asked by Janet Gonzalez on May 06, 2024
Verified
The primary trade-off in transportation mode analysis involves evaluating holding cost against the cost of shipping.
Holding Cost
The expenses associated with storing unsold goods or materials, including warehouse space, insurance, spoilage, and opportunity costs.
Shipping Cost
The expense associated with transporting goods from one location to another, including freight, handling, and packaging costs.
- Comprehend the compromises required when selecting a mode of transportation, particularly in assessing the balance between storage costs and transport expenses.
Verified Answer
DV
Desirae VillarrealMay 11, 2024
Final Answer :
True
Explanation :
The primary trade-off in transportation mode analysis often involves evaluating the holding cost, which includes the costs associated with storing inventory, against the cost of shipping, which includes expenses related to the transportation of goods. This analysis helps in deciding the most cost-effective and efficient mode of transportation.
Learning Objectives
- Comprehend the compromises required when selecting a mode of transportation, particularly in assessing the balance between storage costs and transport expenses.