CHAPTER 3
Logistics Transport Mode Decision Making
Introduction
In this chapter, we will present an approach to determine the most economic transport mode to ship inventory replenishments of finished goods or materials between two locations. We illustrate the potentially significant costs of not considering both total logistics network annual operating costs and investment criteria in making this decision. The methods presented here are generic in that they can be applied to shipments of products or materials by any transport modes between any locations.
Our hypothetical example assumes that a firm manufactures finished goods inventory (FGI) in a plant in the Far East and distributes these products to customers in Europe from its logistics center ...
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