Final answer:
Tailoring transportation based on varying factors in a supply chain is indeed true for achieving both responsiveness and low cost. Efficient location strategy and transport options enhance cost-saving and performance, and changes in external factors like fuel prices can significantly affect supply chain operations.
Step-by-step explanation:
The statement that tailoring transportation based on customer density and distance, customer size, or product demand and value allows a supply chain to achieve appropriate responsiveness and low cost is true. By optimizing transportation strategies, such as location selection near uncrowded freeways or utilizing different transport modalities such as rail or water when available, companies can reduce expenses, improve efficiency, and increase profits. These practices, especially when complemented by advancements in technology and improved labor policies, contribute to an effective supply chain that can adapt to changing market conditions and emergency scenarios.
For instance, a messenger company that operates in an urban environment can substantially reduce its operational costs if the price of gasoline drops. With lower fuel expenses, the company can expand its service area and increase the supply of its delivery services, thus achieving higher profitability. This is a practical example of how costs can translate into supply chain efficiency and responsiveness.