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.

Question

Quizplus · Accepted Answer

This is because revenue considerations take into account market demand and customer service requirements, which may require more facilities to ensure timely and efficient delivery to customers. This may increase the total logistics costs, but the revenue generated from satisfied customers can offset this increase.

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