Asked by James Stupin on May 13, 2024

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Why do companies analyze their logistics systems from the perspective of nodes and links?

Logistics Systems

The integration of transportation, warehousing, inventory management, and other activities that facilitate the movement of goods from producers to consumers.

Nodes and Links

Fundamental elements of networks, where nodes represent points and links represent the connections between these points.

  • Identify the trade-offs and decision-making process within logistics to minimize overall logistics expenses.
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Austin AdamsMay 16, 2024
Final Answer :
From a node-link perspective, the complexity of logistics systems can vary enormously. A node system might use a simple link from suppliers to a combined plant and warehouse and then to customers in a relatively small market area. At the other end of the spectrum are large, multiple-product organizations with multiple plant and warehouse locations. The complex transportation networks of the latter can include three or four different modes and perhaps private as well as for-hire transportation. The node-link perspective, in allowing analysis of a logistics system's two basic elements, represents a convenient basis for seeking possible system improvements. As has been noted, the complexity of a logistics system often relates directly to the various time and distance relationships between the nodes and the links and to the regularity, predictability, and volume of flow of goods entering, leaving, and moving within the system.