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Explaine the paragraph below with other simple words and give an example Because global sourcing increases the distance that components and inputs must be moved,

Explaine the paragraph below with other simple words and give an example

Because global sourcing increases the distance that components and inputs

must be moved, managers must consider trade-offs between transportation

and holding costs.

The choice of a faster transportation alternative (e.g., air) will likely create

higher transportation costs and lower inventory holding costs.

A slower transportation alternative (e.g., water) will create lower

transportation costs and higher inventory holding costs.

Implementation is often a major shortcoming to many global procurement

plans.

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