Around 2008--2009, oil prices shot up to above $200 dollars a barrel from $75 a barrel....
Around 2008--2009, oil prices shot up to above $200 dollars a barrel from $75 a barrel. Shipping rates go up as gasoline price increases. A company that has plants and warehouses in the U.S. and Mexico wanted to re-evaluate its logistic/supply chain network which was conducted in 2002. Which of the following will be the most likely changes to their network in order to reduce total logistics costs?
they would need to increase the number of warehouses to lower transportation costs.
They should reduce the number of warehouses so to tap in economies of scale
They should improve the throughput rate of their warehouses/distribution centers
Do nothing because oil price changes daily; the managers should not make a big fuss about i
Homework Answers
In my views, improving the throughput rate of the warehouses and distribution centers would help in managing the increasing costs of oil and shipping surcharges. The company would be able to enhance its consistency in production and distribution process. This would help in maintaining the efficiency of the logistics of the company.
Answer: Option C : They should improve the throughput rate of their warehouses/distribution centers
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Around 2008--2009, oil prices shot up to above $200 dollars a
barrel from $75 a barrel....
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