Question

A scenario where an operations or purchasing professional needs to evaluate the advantages and disadvantages of logistics sources based on the three criteria of cost, resource use and customer service is called the _____________.

a. Rule of Three
b. Trade-off Principle
c. Transport Rules
d. Law of supply and demand

Answer 1

b. Trade-off Principle.

Step-by-step explanation:

The principle of the trade-off is very important economically, as it consists of the evaluation and decision-making process of choosing one option over another.

This concept is directly related to the opportunity cost, as it is conducted as a lose-and-win process, in which there is a type of conflict of choice, so for the trade-off to happen, an analytical process on the positive and negatives of the opportunity, so that the best decision is made.

In logistics, a trade-off may imply costs of improvements that a company needs to make to improve the business as a whole, such as improving structures and transportation, investing in equipment, etc.

However, it is important to emphasize that in the medium and long term the trade-off will make it possible to increase profitability and expand business.