Explain Why Once Revenue and Total Logistics Costs Are Considered

question 71

Essay

Explain why once revenue and total logistics costs are considered together, the optimal number of facilities in a distribution network may well increase compared to the optimal number of facilities based on total logistics costs only. Include details about the behavior of relevant cost and revenue elements.

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Definitions:

Negative Punishment

A method in behavior modification that involves the removal of a desirable stimulus following unwanted behavior to decrease the likelihood of that behavior occurring again.

Positive Punishment

A concept in behavioral psychology where the addition of an unpleasant stimulus follows a behavior, aiming to decrease the likelihood of that behavior’s occurrence.

Negative Reinforcement

The removal of an aversive stimulus following a behavior, increasing the likelihood of that behavior being repeated.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.