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Zara sources basic products such as white t-shirts from low cost countries because demand is predictable.For trendy products for which demand is unpredictable,Zara sources from company-owned higher cost factories in Europe.For the predictable demand,Zara strives for ________ and for the unpredictable demand,Zara hopes to achieve ________.
Transportation Model
A type of linear programming model used to solve logistics problems, involving the optimization of distributing goods from several suppliers to several consumers in a cost-effective manner.
Central Facility
A primary location or infrastructure that supports operations and services within an organization or network.
Optimal Shipping
The process of determining the most cost-effective and efficient method of distributing products from one point to another.
Unfavorable Exchange Rates
Exchange rates that result in a decrease in the home currency value compared to a foreign currency, potentially leading to higher costs for importing goods and services.
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