Transportation plays a key role in supply chain design, strategy ...

[saraeharris]

Transportation plays a key role in supply chain design, strategy development, and total cost management in three areas. Name these areas and discuss one in detail.

Question 2

Even with technically proper random probability samples, however, statistical errors occur because of chance variation in the elements selected for the sample.
 
 Indicate whether the statement is true or false

[meganmoser117]

Answer to Question 1

Transportation service availability, capacity, and costs influence decisions regarding the number and location of supply chain facilities. For example, many organizations attempt to avoid locating distribution facilities in the state of Florida due to transportation costs.

Transportation capabilities must align with the company's goals. In its 2009 annual report, Amazon.com states that it seeks to be Earth's most customer-centric company and strives to provide easy-to-use functionality, fast and reliable fulfillment, and timely customer service. To hit the targets, Amazon.com needs to partner with carriers that deliver customer orders consistently and quickly, provide shipment visibility, and charge reasonable shipping rates.

Intentional tradeoffs should be made between transportation and related activities (e.g., procurement, production, and inventory management) to optimize supply chain efficiency. For example, retailers can hold lower safety stock levels if the cost of more frequent, faster deliveries does not exceed the inventory carrying cost savings. Similarly, manufacturers can employ lean production strategies if lot sizes can be minimized without creating excessive transportation costs.

Answer to Question 2

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