Abstract
AbstractLogistics theory suggests that transportation and inventory policies are jointly considered by managers because these costs have offsetting properties. For example, when inventory is ordered less frequently, total transportation costs are likely to be lower due to economies of scale; yet inventory carrying costs are likely to be higher. This research analyzes aggregate transportation and inventory costs in the United States from 1960 to 2013, finding that, in the US economy as a whole, inventory and transportation costs are in long‐term equilibrium. Furthermore, inventory seems to be adjusted for changes in transportation costs; however, transportation costs are not adjusted for changes in inventory costs.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
