ABSTRACT
This chapter discusses economic trade-offs (ETO) is divided into a number of topic areas and examines the decision of direct versus indirect distribution is another example of ETOs. The decision-maker obviously needs to keep such considerations firmly in his mind when making operational trade-off decisions. The consultants involved began their investigation by developing scenarios for two possible trade-off situations and by gathering relevant cost data concerning each. The trade-off analysis here includes the number of boxes which can be packed into the container when pallets are used and when they are not. Another factor which needs to be taken into consideration is the additional handling costs associated with unit boxes as against palletised loads. The chapter presents the example of supplier selection. Regarding product source, Rosengard says that the strategy is always to find local suppliers and that’s why the majority of suppliers are from Europe.
