A proof of how the level of product processing affects the costs logistics

Duleba, Szabolcs

Keywords: cost of transport and storage, classifiable nature of products, level of product processing, component analysis

The primary hypothesis has been proven; there really is a relationship between the costs of foreign transport and storage of products. This is almost certainly because the cost of logistics depends on the level of product processing.

The second hypothesis that products are classifiable was only partially proven. Frozen and milk products were placed in the same class because of certain similar characteristics, but their coherence with refreshments and bakers’ ware, the other two components of the class, is difficult to justify. The level of processing of the latter products does not correspond to that of the first two components, they do fall far apart.

The third hypothesis has not been proven. The “Domestic transportation” variable varied with “Foreign transportation” inversely rather than directly. This is probably because the cost of domestic transport for products with logistically costly material characteristics is significantly cheaper than that of foreign transport.

Component analysis did not produce a clear structure. If the aim of a survey is cost analysis then it is well worth to break up the costs of logistics to a greater extent. This is because logistic investments have a special characteristic. They include numerous pairs of “trade-off’s”.

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