Question

Why are the four primary service outputs of spatial convenience, lot size, waiting time, and product variety important to logistics management? provide examples of competing firms that differ in the level of each service output provided to customers?

Answer 1

Answer:

The four primary service outputs should help to eliminate discrepancies.

• discrepancies in space happen when the location of the products is not the same as the location of the consumers
• discrepancies in time happen when there is difference between when the product is available for consumption and when the consumers expected to consume the products
• discrepancies in lot size happen when consumers are expecting one lot size, but the distributed amount is different
• discrepancies in product variety happen when consumers expect a certain assortment of products, but only a limited assortment is manufactured