Factors Affecting the Cost and Importance of Logistics?

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written 8.0 years ago by

teamques10 ★ 69k

Competition via customer service
Order Cycle
Shorter order cycle, less inventory required
Substitution
More substitutable product, higher customer service level required
Inventory Effect
Increase inventory, reduce cost of lost sales
Transportation Effect
Increase transportation costs, reduce cost of lost sales
Product factors
Dollar Value - product value increases, cost of warehousing, transportation and inventory increases
Density- higher the density, more efficient use of warehouse and transportation space
Damage -greater the risk of damage, higher the transportation and warehousing cost
Special Handling Requirments
Spatial Relationships
Distance Factor

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