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:

Intrinsic Motivation

The drive to engage in an activity for its own sake, due to the inherent pleasure and satisfaction derived from participation.

Safety Signals

Cues or markers that indicate the absence of danger, helping to reduce anxiety or fear.

Fear

Fear is an emotional response to perceived threats or danger, characterized by feelings of anxiety, apprehension, and a heightened state of alertness.

Anxiety

A feeling of worry, nervousness, or unease, often about an imminent event or something with an uncertain outcome.