© 2007 Pearson Education1-1Supply Chain Management(3rd Edition)Chapter 1Understanding the Supply Chain© 2007 Pearson Education1-2Traditional View: Logistics in the Economy (1990, 1996) Freight Transportation$352, $455 Billion Inventory Expense$221, $311 Billion Administrative Expense$27, $31 Billion Logistics Related Activity 11%, 10.5% of GNPSource: Cass Logistics© 2007 Pearson Education1-3Traditional View: Logistics in the Manufacturing Firm Profit4% Logistics Cost21% Marketing Cost27% Manufacturing Cost48%ProfitLogistics CostMarketing CostManufacturing Cost© 2007 Pearson...
