QUESTION 1 (LOGISTICS MANAGEMENT 1A)

When a company creates a logistics strategy it is defining the service levels at which its logistics organization is at its most cost-effective. Because supply chains are constantly changing and evolving, a company may develop a number of logistics strategies for specific product lines, specific countries, or specific customers. With this regard,

1.1 Explain the influence of customers in developing a successful logistics strategy. (10)

1.2 Critically evaluate the relationship between lean and agile strategies in managing logistical costs. Support your answer with suitable examples. (18)