
36 Tien Fang Fwa
Consumer packaged goods are typically retail products for end con-
sumers and are used frequently. They are used directly mostly by the
end consumers daily, weekly, or regularly over a varying period of time.
As such, collection and delivery has to be made frequently at regular
intervals over the entire distribution network covering all parts of a city.
A typical outbound supply chain involves a number of intermediaries,
as shown in Figure2.3. The corresponding logistics cost consists of four
main components: transportation cost, warehousing cost, freight for-
warding cost, and miscellaneous cost. Of these, transportation is ...