INBU 3304 Chapter Notes - Chapter 1: Health Technology, Horizontal Integration, Radio-Frequency Identification
17 Sep 2016
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Textbook notes inbu 3304 (mru custom published textbook) The evolution of logistics and supply chain management. What are the 6 key developments of logistics and supply chain management: reduced transport intensity of freight, falling product prices, deregulation of transport, productivity improvements, emphasis in inventory reduction, changes in company structure. This reduces the transport cost sensitivity this is the relationship of transport cost to the freight value: some products don"t need to be shipped as a physical product. Instead, they are shipped as a virtual product. This is called material substitution: many individual shipments include increased value/decreased volume = lower transport cost sensitivity. Falling product prices: when competition is increased the falling product prices forces numerous companies to reduce costs, companies will try to reduce the transport cost sensitivity as much as they can when they transport products. This means that they can focus on where to save 5660$
