111k views
3 votes
Changing the distribution network design does not affect the following supply chain costs

User CBRRacer
by
8.0k points

1 Answer

4 votes

Final answer:

Changing the distribution network design can impact certain supply chain costs, but there are some costs that may not be affected.

Step-by-step explanation:

Changing the distribution network design can affect several supply chain costs, but there are certain costs that may not be affected.

One cost that may not be affected is the average cost, which is the total cost divided by the quantity of goods produced. The average cost is determined by factors such as production efficiency, economies of scale, and fixed costs that are not directly influenced by distribution network design.

Another cost that may not be affected is the marginal cost, which is the cost of producing an additional unit of a product. Marginal costs are primarily influenced by factors such as labor, materials, and energy costs, rather than distribution network design.

However, it's important to note that changing the distribution network design can impact other supply chain costs such as transportation costs, inventory holding costs, and order fulfillment costs.

User Deepak Thomas
by
8.2k points