Transportation Modelling Transportation is the most important part of Logistics & Supply Chain Management. All costs associated with movement of products from one location to another constitute of transportation cost. The average transport costs ranges from 5 to 6 percent of the recommended retail price of the product. Why Transportation Models are required ? Companies produce products at locations called Origins and ships these products to customer locations called Destinations. Each Origin has a limited amount that it can ship, and each Destination must receive a required quantity of the product. The Transportation Models prove useful when considering alternative facility locations within the framework of existing distribution system. Each potential plant, warehouse, or distribution centre will require a different allocation of shipments, depending upon its own production or shipping costs and its strategic position in the network. Transportation Modelling...
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