What are some trade-offs that might be factors in designing a supply chain?
Table of Contents
- 1 What are some trade-offs that might be factors in designing a supply chain?
- 2 What are five distribution trade-offs?
- 3 What is meant by cost benefit trade offs relating to inventory?
- 4 Why is trade-off important?
- 5 What is the trade-off between inventory carrying costs and ordering costs?
- 6 What is meant by cost benefit trade-offs relating to inventory?
What are some trade-offs that might be factors in designing a supply chain?
What are some of the trade-offs that might be factors in designing a supply chain?…
- Convenience.
- Reliability.
- Responsiveness.
- Time.
- Assurance.
- Courtesy.
- Tangibles.
- Consistency.
What are five distribution trade-offs?
The specific trade-offs variables in this study are limited to five. They are transportation cost (C), reliability (R), information systems (I), capacity (V), and insecurity (S). So, for example, the trade-off between cost and capacity is termed as a CV.
What is inventory trade-off?
If you wish to store a lot of goods that is going to increase your costs but if you want to keep your inventory down you need to move more goods quicker through the system. It’s a trade-off between where your goods are and how you get them to your customer.
What is meant by cost benefit trade offs relating to inventory?
desirability of a product or service in terms of the expected benefit relative to the cost; also called cost-benefit analysis. If the expected benefit exceeds the cost, the purchase is justified by a positive cost-benefit trade-off.
Why is trade-off important?
Trade-offs create opportunity costs, one of the most important concepts in economics. Whenever you make a trade-off, the thing that you do not choose is your opportunity cost. Everything has opportunity costs. If you just bought something, you could have always chosen to buy something else instead.
What is economic trade-off?
The term “trade-off” is employed in economics to refer to the fact that budgeting inevitably involves sacrificing some of X to get more of Y. With a fixed amount of savings, one can buy a car or take an expensive vacation, but not both. The car can be “traded off” for the vacation or vice versa.
What is the trade-off between inventory carrying costs and ordering costs?
Inventory carrying costs refer to the costs associated with holding inventory. The trade-off that exists between carrying and ordering costs is that they respond in opposite ways to the number of orders or size of orders. That is, an increase in the number of orders leads to higher order costs and lower carrying costs.