Question

How is the rise in transportation costs likely to affect global supply chain networks?

Answer 1

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Explanation:

Companies must maintain their transportation, facility, and inventory cost while designing the supply chain network. ... The decision to increase the facilities increases the customer responsiveness but at the same time increases the transportation cost and decreases the revenue.

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Answer 2

The rise in transportation costs likely to affect global supply chain networks in the following way -

• The supply chains in the global scale is totally dependent on the large scale transportation systems like air transportation,water transportation etc. (land transportation is less used in the global scale)

•When the transportation costs rises the allover cost of the supplied products increases which affects the market demand in a negative way.

• At last a major inclination in the global economy is observed which is not expected by anyone.