Statement of objectives: The statement of objectives documents the cost and service expectations for the logistics systems revisions. It’s essential that they be stated specifically and in terms of measurable factors. The objective fine market or industry segments, the time frame for revisions, and specific service levels. For e.g., desired delivery of 98 percent of all orders within 48 hours after the order is placed, minimal customer shipments from secondary distribution centers, back – orders held for a maximum of five days, etc. specific definitions of these objectives direct system design efforts to achieve explicit performance levels. Total system cost can then be determined.
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