Asked by Rebika Basnet on May 11, 2024
Verified
What is often the largest component of logistics costs?
A) Inventory costs
B) Transportation costs
C) Shipper-related costs
D) Administrative costs
Logistics Costs
The total expenses incurred in moving goods from their point of origin to the final consumer, including transportation, warehousing, and handling fees.
Inventory Costs
The costs associated with storing and handling inventory, including warehousing, insurance, and transportation, among others.
Transportation Costs
Expenses associated with moving goods from one location to another, including fuel, labor, and maintenance of vehicles, among other factors.
- Recognize the trade-offs and decision-making process in logistics to optimize total logistics costs.
Verified Answer
Learning Objectives
- Recognize the trade-offs and decision-making process in logistics to optimize total logistics costs.
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