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What causes complexity in logistics?a. Organisation cultureb. Globalised supply chainc. Petrol pricesd. Cash outflow

Question

What causes complexity in logistics?

a. Organisation culture
b. Globalised supply chain
c. Petrol prices
d. Cash outflow

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Solution

All of the options listed can contribute to complexity in logistics:

a. Organisation culture: The culture of an organisation can affect how it manages its logistics. For example, a company that values efficiency and cost-cutting may have a more streamlined and less complex logistics system than a company that values customer service and is willing to invest in more complex logistics to ensure customer satisfaction.

b. Globalised supply chain: A globalised supply chain can add complexity to logistics because it involves coordinating with suppliers, manufacturers, and distributors in different countries, each with their own regulations, customs, and business practices.

c. Petrol prices: Changes in petrol prices can affect the cost of transportation, which is a key component of logistics. If petrol prices rise, a company may need to reevaluate its logistics strategy to keep costs down, which can add complexity.

d. Cash outflow: Cash outflow refers to the money a company spends on its operations, including logistics. If a company is trying to reduce its cash outflow, it may need to find ways to make its logistics more efficient, which can also add complexity.

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