Strategic logistics decision making

Logisticians must make strategic level decisions in order to manage uncertainty, customer service and cost. This research explores the relationships between three strategic level decisions and selected product, operational and demand variables. The three strategic decisions are: make to order vs make to stock; push vs pull inventory deployment; and inventory centralization vs decentralization. The data used to study the relationships were collected in an international environment and analyzed with correlation analysis and logistic regression. Results suggest that the three strategic decisions are each explained by specific product, operational and demand variables.

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