Transportation plays a key role in every supply chain because
A)products are normally produced and consumed in the same location.
B)products are rarely produced and consumed in the same location.
C)the cost of transportation is inconsequential.
D)transportation is not a factor in determining profitability.

Question

Quizplus · Accepted Answer

Transportation is essential in supply chain management because products are usually manufactured in one location and consumed in another, often distant, location. Therefore, transportation cost and efficiency directly impact the overall supply chain costs and performance. The statement in option A is false, as products may not always be produced and consumed in the same location. The statement in option C is also incorrect because transportation costs can be a significant portion of the overall supply chain costs. Finally, the statement in option D is wrong because transportation can influence the overall profitability of a supply chain by impacting delivery times and customer satisfaction.

Transportation Plays a Key Role in Every Supply Chain Because