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Paraphrase the following: As aforementioned, logistic costs play a major effect on the entirety of a network design as it calculates and plans for an
Paraphrase the following: As aforementioned, logistic costs play a major effect on the entirety of a network design as it calculates and plans for an efficient supply chain. A key and extensive portion of logistic costs lie within the transportation costs. According to Chopra, "transportation costs include inbound costs to bring supply into the facility and outbound costs to deliver the output of the facility" (p. 122). Therefore, if a rise in transportation costs occur, it will dramatically affect the supply chain both locally and globally. Global transportation will incur the brunt of the negative effects as there are additional costs including the extensive and expansive transportation methods, import fees, petroleum costs, and exchange rates. The goal is to reduce the overall costs throughout the supply chain, so businesses must research and forecast if global operations would be inherently beneficial to the logistics costs and overall net profit
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