Implications of Cost-Service Trade-offs on Industry Logistics Structures
Published Online:1 Dec 1985https://doi.org/10.1287/inte.15.6.47
Abstract
The characteristics of the technology and markets within an industry will affect the range of logistics systems observed in that industry. In some industries the range is wide, while in others all firms make the same logistics choices. This paper explores these differences. We propose the concept of an efficient frontier of cost-service choices and show how firms align themselves along the frontier.
