De waarde van informatie - Information and supply chain trade-offs - Designing the supply chain for conflicting goals

5 important questions on De waarde van informatie - Information and supply chain trade-offs - Designing the supply chain for conflicting goals

What is the Lot Size - Inventory trade-off?

Manufacturers want high lot sizes are the setup cost per unit is then decreased, but this leads to high inventory levels as demand does not come in large lot sizes. However, nowadays many systems exist to make the trade-off less hard.

What is the Inventory - Transportation Cost trade-off?

It is usually cheaper to transport a full truck. This leads to a high inventory to fill up the truck. However, high inventory levels are not wanted.

What is the Lead Time - Transportation Cost trade-off?

Transportation costs are lowest with high quantities. However, this requires long lead times as inventory cannot be shipped immediately.
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What is the Product Variety - Inventory trade-off?

Product variety greatly increases the complexity of supply chain management. This can increase the inventory level as each products needs its own safety stock and base-stock.

What is the Cost-Customer Service trade-off?

Reducing costs in multiple stages can decrease the level of customer service as products might not be at hand immediately.

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