Asked by Sophony Henri on Jul 18, 2024

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The facilities in a supply chain network must

A) at least maximize total logistics cost.
B) at least equal the number that maximizes total logistics cost.
C) at least equal the number that minimizes total logistics cost.
D) at least minimize total logistics cost.

Total Logistics Cost

The overall expenses associated with the planning, implementing, and controlling of goods’ movement, including transportation, inventory, warehousing, and order processing costs.

Facilities

Physical locations and infrastructures, such as factories, warehouses, and offices, where business operations occur.

Supply Chain Network

A complex system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.

  • Determine the ramifications of logistics expenditures on the decision-making process for facility siting, taking into account the impacts of tariffs and worldwide competition.
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BM
Bianca MirandaJul 24, 2024
Final Answer :
C
Explanation :
The facilities in a supply chain network should be designed to minimize the total logistics cost. Therefore, the number of facilities should at least equal the number that minimizes total logistics cost. Option B is incorrect because maximizing the logistics cost would not be beneficial for the network. Option A and D are incorrect because they suggest that the logistics cost can be below or above the optimal level, which is not desirable.