Chapter 12 IB decision-aids

Overview
International logistics comprise a relatively large percentage of a product’s sale value. Managers therefore would want to minimise this cost and maximise customer satisfaction through the development of efficient and effective supply chains. There is thus a critical trade-off between location advantages and logistics costs.

 

Activity description
Go to the website of the World Bank that provides the International Logistics Performance Index. The LPI ranks countries on six dimensions of trade based on quantitative and qualitative data obtained from international logistics experts. The ranking provides and indication of quality, efficiency, and effectiveness of inbound and outbound logistics per country. Compare countries with each other at international and domestic level.

Consider

  • How can the LPI ranking assist managers in balancing the trade-off between location advantages and logistic costs?
  • How do lead times differ between a high ranked and a low ranked country?
  • How do lead times differ between two high ranked countries?

 

Visit the following website:
https://lpi.worldbank.org/international

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