Final answer:
True, Warehouse and transportation planning systems are crucial for strategic planning, as they optimize logistics and transportation efficiency, reduce costs, and respond to business needs. Relevant models and examples from history underscore the importance of location and transportation in the development and success of industries and cities.
Step-by-step explanation:
True, warehouse and transportation planning systems indeed support strategic planning efforts by allocating fixed logistics capacity most efficiently, given the business requirements. Shipping finished goods over congested streets and freeways increases costs and reduces profits, thus planning systems aim to optimize locations and transport routes. Locations near uncrowded freeways support this optimization, as they allow for easy travel for workers and materials, and access to rail or water transport can further reduce costs and improve efficiency. Moreover, technology advancements, improvements in transportation methods and vehicles, and updated labor policies can contribute to solving supply chain issues, as well as supporting labor rights, and ensuring supply chain resilience in national emergencies.
Weber's Location Model and Von Thünen's Model have historical relevance in the siting of production and agricultural activities concerning transportation costs. Similarly, large cities with multiple transportation options, such as New York City and Los Angeles, demonstrate how critical transportation and location are for trade and industry through their development as a break of bulk points. This illustrates the importance of strategic warehouse and transportation planning in determining the site location and scale of production.
Economies of scale also play a role, since as a factory scales up production, the cost per unit decreases. These considerations make it clear that logistics capacity allocation is crucial for the strategic planning of supply chains and the efficient operation of business activities.