Once Revenue and Total Logistics Costs Are Considered Together, the Optimal

question 136

True/False

Once revenue and total logistics costs are considered together, the optimal number of facilities in a distribution network may increase compared to the optimal number of facilities based on total logistics costs only.

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Definitions:

Economic System

A framework that defines how economic activities, including production, distribution, and consumption of goods and services, are organized and governed within a society.

Basic Economic Questions

Fundamental questions every economy must answer regarding what to produce, how to produce it, and for whom it is produced.

Economic Growth

An increase in the amount of goods and services produced per head of the population over a period of time, reflecting a growing economy.

Outward Shift

In economics, refers to the movement of a curve away from the origin on a graph, typically illustrating growth or increase in factors like production possibility frontier or supply curve.