Asked by anita raymond on Apr 28, 2024
Verified
The mode of transportation that results in the lowest transportation cost will also lower total costs for a supply chain.
Mode of Transportation
Refers to the various methods or forms used to move people or goods from one place to another, such as by road, rail, air, or sea.
- Grasp the vital importance and repercussions of choices made regarding transportation in a supply chain framework.
- Understand the impact of various factors such as carrier prices and speed on transportation expenses.
Verified Answer
AB
April BeshearApr 28, 2024
Final Answer :
False
Explanation :
The mode of transportation with the lowest transportation cost might not lower total costs for a supply chain because it may lead to higher costs in other areas such as inventory holding, packaging, or loss and damage, offsetting the savings on transportation.
Learning Objectives
- Grasp the vital importance and repercussions of choices made regarding transportation in a supply chain framework.
- Understand the impact of various factors such as carrier prices and speed on transportation expenses.
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