white essay - Logistics- 3T5 3-28-01 Ch 2 Q#5 One general...

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Logistics- 3T5 3-28-01 Ch 2 Q#5 One general approach to total cost analysis for logistics is known as short run analysis. For short run analysis you would look at a short-term situation and develop costs associated with various logistics centers. An example of a logistics center would be Plant Logistics, Transportation, or Warehouse. You would develop cost information for each alternative system considered. After this is done you would then choose the system with the lowest overall cost. Essentially this method analyzes costs associated with a logistics system’s various components at one point in time, or at one output level. Short run analysis is commonly called static analysis. The second way to project the best system is to mathematically calculate the point of equality between the systems. This is commonly called dynamic analysis. To better explain long production run and short production run I will give an example of each. A company is using an all rail route to ship from the plant and
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white essay - Logistics- 3T5 3-28-01 Ch 2 Q#5 One general...

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