Question

Describe some disadvantages of using a slow shipping method.

10. Besides warehouse layout decisions, what are some other applications where ranking items according to “bang/buck” might make sense?

Answer 1

Disadvantages of using slow shipping methods are:

• Delay in delivery of product to customer or consumer which can have negative impact on future business
• Slow turnaround of inventory leading to high carrying cost
• Loss of revenue to company in case of product un-availability in market and slow delivery
• Unable to meet and cope up with fluctuations in market requirement like demand blip etc.