The logistics manager has to achieve objectives of freight cost reduction, speed and reliability in
delivery. However, the freight cost is infl uenced by the following factors.
Volumes
With the economies of scale, the cost of operations is distributed over large volumes resulting into
lower per unit cost of cargo movement. For example, a 9-tonne loading capacity truck will have the
same cost components of fuel consumption, loading and unloading charges, employee cost etc., for
the distance covered, irrespective of whether the truck is fully or partially loaded.
Distance
The variable ...
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