9. International Inventory, Warehousing and Cargo Handling

Introduction and Context

International trade logistics is concerned not only with moving goods across borders but also with deciding where goods should be positioned, how much inventory should be held, how cargo should be protected, and how warehouse activities should be coordinated with transport and customs processes. Inventory, warehousing and cargo handling therefore form an integrated system. A poorly designed inventory policy can create stockouts, excessive working capital and customs-related delays. Inadequate packaging or handling can cause product damage even when the transport movement itself is efficient.

Cross-border logistics adds complexity to ordinary inventory decisions. Demand may be uncertain in several markets; replenishment lead times may include production, inland transport, port operations, customs clearance and international transit; and inventory may be located in different legal and tax jurisdictions. Managers must balance customer service against capital cost, storage cost, insurance, obsolescence, damage, regulatory exposure and disruption risk.

This chapter examines the principal decisions involved in international inventory positioning, safety stock, warehousing, packaging, containerization, unitization, dangerous goods and temperature-controlled logistics. The central theme is coordination: inventory policy must be connected to network design, warehouse processes, transport choices, information systems and regulatory compliance.

Learning Objectives

After studying this chapter, the student should be able to:

1. Explain the role of inventory and warehouses in international trade logistics.

2. Calculate and interpret cycle stock, safety stock, reorder points and inventory performance measures.

3. Evaluate the effects of cross-border lead-time variability on inventory decisions.

4. Compare packaging, unitization and containerization alternatives.

5. Design appropriate controls for dangerous goods and cold-chain cargo.

6. Assess warehouse processes, technologies, risks and performance indicators.

7. Recommend integrated solutions that balance service, cost, sustainability and compliance.

1. International Inventory as a Positioning Decision

Inventory is stock held to satisfy future demand or to support production and distribution. In an international network, the significant question is not simply how much inventory exists, but where it is located. Stock may be held at a factory, consolidation centre, bonded warehouse, regional distribution centre, port warehouse, customs-controlled facility or customer location.

Inventory serves several purposes. Cycle stock supports normal replenishment quantities. Safety stock protects against uncertainty in demand and replenishment time. Pipeline inventory is in transit and unavailable for immediate sale, although it is economically important. Anticipation inventory is accumulated before seasonal demand, anticipated disruption or a known capacity constraint. Decoupling stock separates stages of a supply chain so that one process can continue temporarily when another is interrupted.

International inventory decisions involve a trade-off between centralization and decentralization. A centralized regional distribution centre can pool demand variability and reduce total safety stock, while a decentralized network can shorten customer lead times and reduce the distance to markets. Centralization may, however, increase delivery distance, customs complexity and exposure to a single facility or corridor. The appropriate solution depends on product value, demand variability, customs requirements, service commitments, transport economics and disruption risk.

Inventory Costs and Service

The relevant cost of inventory includes more than the purchase price. Important components are:

• ordering and replenishment costs;
• transportation and handling costs;
• warehousing and space costs;
• financing or capital carrying cost;
• insurance, taxes and duties where applicable;
• damage, shrinkage and obsolescence;
• stockout, lost-sales and expediting costs.

Service may be measured through product availability, order fill rate, on-time delivery, promised lead time and the probability of avoiding a stockout during replenishment. A high service target generally requires more safety stock, but the relationship is not linear. Moving from a moderate service level to a very high service level can require disproportionately large inventory, particularly when lead times are variable.

2. Lead Time, Safety Stock and Replenishment

International replenishment lead time is the elapsed time between recognizing a replenishment requirement and making the goods available for use or sale. It can include order processing, supplier production, export documentation, pre-carriage, terminal handling, customs clearance, main carriage, import procedures, inland delivery and receiving. Managers should distinguish nominal lead time from lead-time variability. A route with a longer but reliable lead time may require less safety stock than a shorter but highly unpredictable route.

For relatively stable demand and lead time, a basic reorder point is:

Reorder point = demand during lead time + safety stock

If average daily demand is 100 units and average lead time is 20 days, demand during lead time is 2,000 units. If safety stock is 600 units, the reorder point is 2,600 units. When the inventory position reaches this level, a replenishment order should normally be initiated. Inventory position includes on-hand inventory plus confirmed incoming inventory minus outstanding commitments.

When demand varies but lead time is constant, a simplified safety-stock expression is:

Safety stock = z × standard deviation of demand during lead time

Here, z represents the desired service factor. When both demand and lead time vary, safety stock should reflect both sources of uncertainty. A commonly used approximation is:

SS = z × √(Lσd² + d²σL²)

where L is average lead time, σd is the standard deviation of demand per period, d is average demand per period and σL is the standard deviation of lead time. This model is useful for managerial analysis, but it assumes that the data are reasonably stable and that demand and lead-time relationships are understood. In volatile trade lanes, simulation or scenario analysis may be more appropriate.

Postponement and Strategic Stock

Postponement delays final configuration, labelling, packaging or allocation until demand information is clearer. For example, a firm may import generic products into a regional facility and apply market-specific labels only after receiving an order. Postponement can reduce finished-goods variety and obsolescence, although it may require flexible warehouse operations and regulatory approval.

Strategic stock is inventory deliberately held to protect against major risks rather than normal statistical variation. Examples include critical spare parts, components subject to geopolitical restrictions or products supplied through a vulnerable transport corridor. Strategic stock should be governed by explicit risk assumptions; otherwise it can become an unreviewed accumulation of obsolete inventory.

3. Warehousing in a Cross-Border Network

A warehouse performs more than storage. It receives, identifies, inspects, puts away, stores, replenishes, picks, packs, stages and dispatches goods. In international logistics it may also support customs documentation, bonded storage, consolidation, deconsolidation, labelling, inspection, quality release and reverse logistics.

A warehouse may be classified by ownership, function or customs status. Private warehouses are operated for the owner’s goods, while public or contract warehouses serve multiple users. Distribution centres emphasize rapid flow rather than long-term storage. Bonded or customs-controlled facilities allow eligible goods to remain under customs supervision before duties are paid or the goods are released. Free-trade-zone arrangements may provide specific customs benefits, but their use depends on national law and the goods involved.

Warehouse Design and Process Flow

Design begins with the characteristics of the product and the expected flow. Product dimensions, weight, value, hazard class, turnover, temperature requirements and order profiles influence the choice of storage system. Fast-moving goods should generally be positioned to minimize travel and congestion. Slow-moving or reserve stock can be stored in denser locations if access requirements permit.

A typical international warehouse flow is:

1. advance shipment information and appointment scheduling;

2. receiving and document verification;

3. quantity, condition and quality inspection;

4. identification, labelling and system receipt;

5. put-away or cross-docking;

6. storage and inventory control;

7. order release, picking and consolidation;

8. packing, documentation and staging;

9. dispatch and confirmation of shipment.

Cross-docking transfers goods from receiving to dispatch with little or no storage. It is suitable when inbound shipments are accurately scheduled and outbound demand is known. It reduces storage time but increases dependence on timing, information quality and dock coordination.

Warehouse Control Methods

FIFO, or first-in, first-out, removes the oldest received stock first. FEFO, or first-expired, first-out, selects stock with the earliest expiry date and is especially important for pharmaceuticals, food and certain chemicals. Lot control links inventory to production or batch numbers and supports recall, traceability and quality investigations. Serial-number control is appropriate for high-value equipment and products requiring individual identification.

Cycle counting checks selected inventory regularly instead of relying only on an annual physical count. Counting frequency should reflect value, movement, criticality and historical accuracy. Inventory record accuracy is a prerequisite for reliable replenishment, customs reporting and customer service.

4. Packaging, Unitization and Containerization

Packaging performs several functions: containment, protection, handling efficiency, communication and regulatory compliance. Export packaging must withstand longer journeys, multiple handling points, humidity, vibration, compression, temperature changes and possible exposure to rain or salt air. Packaging decisions should be based on the complete logistics environment rather than the domestic journey for which a product was originally designed.

Primary packaging directly contacts the product; secondary packaging groups primary packages; tertiary packaging supports handling and transport. Export packaging may require moisture barriers, cushioning, corrosion protection, tamper evidence, impact indicators or special markings. Wood packaging used in international trade may be subject to phytosanitary requirements, including treatment and marking rules under applicable international and national regimes.

Unitization combines individual packages into a handling unit, commonly on a pallet, skid or slip sheet. Unitization reduces handling touches, improves counting and can increase vehicle and warehouse productivity. However, pallet dimensions, load stability, weight distribution and compatibility with handling equipment must be considered. An unstable pallet may create more risk than a non-unitized load.

Containerization places cargo in standardized intermodal equipment for movement by road, rail, sea and sometimes inland waterway without unloading the individual packages at each transfer. Benefits include reduced handling, improved security and efficient intermodal movement. Decisions include container size and type, payload limits, cube utilization, weight distribution, securing method and compatibility with terminals and vehicles.

A container may be volume-constrained when the cargo fills its space before reaching its weight limit, or weight-constrained when the legal or equipment payload is reached first. Efficient planning considers both. Overloading, poor axle distribution, inadequate blocking and bracing, or incorrect declaration of cargo can cause accidents, claims, delays and regulatory action.

5. Cargo Handling and Equipment Selection

Cargo handling includes loading, unloading, movement, positioning, inspection, securing and staging. Each handling event creates an opportunity for damage, loss or delay. A sound handling system therefore aims to reduce unnecessary touches and provide clear responsibility at transfer points.

Common equipment includes pallet trucks, counterbalance forklifts, reach trucks, stackers, conveyors, cranes, automated storage and retrieval systems, mobile robots and container handling equipment. Selection should reflect load characteristics, aisle width, lift height, throughput, floor condition, battery or fuel requirements, operator competence and safety rules.

Cargo securing is a technical activity. Loads must be restrained against movement caused by acceleration, braking, turning, vibration and vessel motion. Blocking, bracing, lashings, dunnage and friction-enhancing materials may be used according to cargo characteristics and applicable codes. A documented loading plan is particularly important for heavy, fragile, liquid or hazardous cargo.

Handling performance should be assessed through damage frequency, loading accuracy, dock-to-stock time, picking productivity, equipment utilization, labour safety and claims cost. Productivity measured without safety or quality indicators can encourage unsafe speed and conceal total logistics cost.

6. Dangerous Goods and Regulatory Control

Dangerous goods are substances or articles that may present risks to health, safety, property or the environment during transport. Their movement is governed by modal and national regulations. The classification process generally considers the nature of the hazard, such as explosives, gases, flammable liquids, flammable solids, oxidizing substances, toxic materials, radioactive materials or corrosive substances.

Compliance begins with correct classification, packaging, marking, labelling, documentation and communication. A shipper must not rely solely on a commercial product name; the technical properties and applicable transport rules determine the requirements. Safety data sheets support understanding but do not replace the formal transport classification and declaration required by the relevant regime.

Warehouses handling dangerous goods need segregation rules, compatible storage locations, spill-control equipment, emergency procedures, trained personnel, inspection routines and controlled access. Incompatible substances should not be stored together merely because they arrive in the same shipment. Emergency planning should address fire, leakage, exposure, damaged packages and notification responsibilities.

A common mistake is treating compliance as a documentation exercise. A correctly completed document cannot compensate for an unsuitable package, incorrect segregation or an untrained forklift operator. Governance requires accountability across the shipper, carrier, warehouse operator, freight forwarder and consignee.

7. Cold Chains and Temperature-Sensitive Cargo

A cold chain maintains specified environmental conditions from origin to final use. Products may require chilled, frozen, controlled-room-temperature or other defined ranges. The key principle is that temperature quality is cumulative: a brief excursion can be significant even if the average temperature over the journey appears acceptable.

Cold-chain design begins with product stability data and an agreed temperature profile. It then considers pre-cooling, packaging, loading density, refrigeration equipment, power availability, transit duration, border delays, monitoring and contingency arrangements. Temperature-controlled containers and vehicles should be preconditioned, and air circulation must not be blocked by poor loading patterns.

Monitoring devices may include data loggers, Bluetooth sensors, cellular trackers and connected telematics. Monitoring is valuable only when alert thresholds, responsible personnel and corrective actions are defined. A temperature alert without a decision protocol may simply produce evidence of failure after the product has been compromised.

Good practice includes qualified packaging, calibrated sensors, documented handover checks, excursion assessment, backup power or alternative storage, and disposition procedures for affected goods. In pharmaceuticals and food, quality release may require review by authorized personnel rather than automatic acceptance or destruction.

8. Digital Systems, Analytics and Automation

Warehouse management systems (WMS) coordinate receiving, locations, replenishment, picking, packing and dispatch. Transportation management systems (TMS) support routing, carrier selection, shipment visibility and freight analysis. Enterprise resource planning systems connect purchasing, sales, finance and inventory records. Electronic data interchange and application programming interfaces allow information to move between trading partners.

Barcodes and radio-frequency identification improve identification and transaction accuracy. Sensors can provide location, temperature, shock and humidity data. Digital twins and simulation can test facility layouts, inventory policies and disruption scenarios before implementation. Artificial intelligence can support demand forecasting, anomaly detection, slotting and labour planning, but its output depends on data quality and human oversight.

Automation should not be adopted merely because it is technologically available. A business case should compare capital cost, throughput, flexibility, maintenance, cybersecurity, labour effects, integration risk and expected service improvement. Automated systems can magnify errors if master data, dimensions, locations or product classifications are incorrect.

9. Performance Measurement and Managerial Trade-offs

No single metric adequately evaluates international inventory and warehouse performance. Useful measures include:

• inventory turnover and days of inventory on hand;
• fill rate, order-cycle service level and stockout frequency;
• forecast error and forecast bias;
• lead-time average and variability;
• dock-to-stock and order-to-dispatch time;
• picking accuracy and inventory record accuracy;
• warehouse space utilization and labour productivity;
• damage, claims, shrinkage and loss rates;
• energy use, packaging waste and emissions per shipment.

Metrics must be interpreted together. High space utilization may indicate efficient storage, but it can also create congestion and slow retrieval. High inventory turnover may reflect efficiency or chronic understocking. A low freight cost per unit may result from slow transport that increases pipeline inventory and stockout risk.

A total-cost perspective is therefore essential. Managers should examine the combined effects of inventory, warehousing, transport, duties, handling, quality, service failures and risk. Decisions should also consider resilience: the cheapest design under normal conditions may be unsuitable when border closures, port congestion, cyber incidents or supplier failures occur.

Illustrative Case Study: A Regional Distribution Network for Medical Devices

Background

MedAxis, a fictional manufacturer of diagnostic devices, supplied hospitals in three countries from a single factory. Products were high value, relatively compact and required serial-number traceability. Some accessories had expiry dates, while the main devices did not. The company used international air freight for urgent orders and consolidated ocean freight for routine replenishment.

Situation and Problem

Customers reported inconsistent delivery performance. The company held large quantities at the factory, yet hospitals sometimes waited for accessories. Customs clearance was delayed because commercial documents did not consistently match serial numbers and package contents. Damage claims were low but expensive. Management proposed a regional warehouse near a major airport, but finance questioned whether the additional facility would increase total cost.

Analysis

An analysis separated cycle stock, safety stock and pipeline inventory. It showed that high factory inventory did not protect customers effectively because most stock was positioned upstream of the longest and most variable lead-time segment. Demand for accessories was more variable than demand for devices, and the existing policy did not distinguish them. The warehouse also picked accessories using FIFO rather than FEFO.

The company mapped the end-to-end process and identified four causes of delay: late order confirmation, inconsistent master data, manual serial-number entry and incomplete customs documentation. It also found that transport mode decisions were made shipment by shipment rather than through a service-based segmentation policy.

Approach and Solution

MedAxis established a regional distribution centre under an appropriate customs arrangement, subject to local legal review. Devices were held in lower quantities because their demand was relatively stable and their value was high. A controlled quantity of critical accessories was positioned regionally as safety stock. Replenishment parameters were recalculated using demand and lead-time variability rather than average demand alone.

The warehouse introduced serial scanning, FEFO for dated accessories, cycle counting based on value and criticality, and a documented inspection process. A packaging review added improved cushioning and shock indicators for selected products. Routine replenishment was consolidated, while urgent hospital orders used a defined premium transport policy. Customs data were standardized through the ERP-WMS interface.

Outcome

The redesigned network reduced the dependence on emergency shipments and improved the availability of critical accessories. Inventory was not simply reduced; it was repositioned and differentiated by product and service requirement. The case demonstrates that a regional warehouse creates value only when supported by accurate data, suitable inventory parameters, disciplined processes and clear customs governance.

Learning Points

The principal lesson is that inventory quantity cannot be evaluated independently of location and lead time. A second lesson is that traceability and documentation are operational capabilities, not merely administrative tasks. Finally, warehouse investment should be assessed against total landed cost and service risk rather than storage cost alone.

Challenges, Risks and Common Mistakes

International inventory and cargo operations face demand volatility, inaccurate forecasts, port and border congestion, currency changes, trade restrictions, theft, counterfeit substitution, damage, temperature excursions, labour shortages and cyber disruption. Regulatory changes can alter admissibility, labelling, duties or documentation requirements with limited notice.

Common mistakes include using average lead time while ignoring variability; setting one service level for all products; counting pipeline stock as available stock; maximizing warehouse occupancy; selecting packaging on purchase price alone; mixing incompatible dangerous goods; failing to reconcile physical and system inventory; and implementing automation before process stabilization.

Risk treatment should combine prevention, detection, response and recovery. Examples include alternate suppliers, multi-route planning, minimum critical stock, insurance, carrier qualification, warehouse security, digital backups, emergency drills and documented escalation rules. Resilience is not identical to holding maximum inventory; it is the capacity to maintain or restore essential service at an acceptable cost.

Ethical, Governance and Sustainability Considerations

Managers are responsible for safe working conditions, fair labour practices, accurate declarations and truthful product information. Pressure to meet delivery targets must not encourage unsafe loading, falsified temperature records, improper dangerous-goods declarations or concealment of damage. Data systems must protect commercial, personal and security-sensitive information.

Sustainability decisions should consider packaging material, reusability, cube utilization, empty miles, energy consumption, refrigeration emissions and product waste. A lighter package may reduce transport emissions but provide inadequate protection, causing greater waste through damage. Life-cycle evaluation is therefore preferable to judging an option by one environmental attribute.

Current Developments and Best Practices

Emerging practice is moving toward control towers, end-to-end visibility, predictive exception management, reusable packaging, low-carbon transport, autonomous handling and digitally connected cold chains. However, technology does not eliminate the need for sound product classification, master data, process ownership and professional judgment.

Effective organizations generally follow these principles:

• segment inventory by value, demand, criticality and service requirement;
• measure lead-time variability across the entire cross-border process;
• position stock according to customer response needs and risk;
• design packaging and loading for the actual transport environment;
• use FEFO, lot and serial control where product risk requires it;
• integrate WMS, TMS, ERP and customs information where feasible;
• train personnel and audit dangerous-goods and cold-chain processes;
• evaluate decisions using total cost, service, resilience and sustainability;
• review parameters after changes in demand, routes, regulations or suppliers.

Chapter Summary

International inventory, warehousing and cargo handling are interdependent elements of cross-border logistics. Inventory must be positioned and controlled according to demand, lead-time variability, service requirements and risk. Reorder points and safety stock provide useful analytical foundations, but international decisions often require scenario analysis and strategic stock policies.

Warehouses support storage, flow, consolidation, customs control, traceability and value-adding activities. Their performance depends on layout, process discipline, accurate records and suitable handling equipment. Packaging, unitization and containerization protect cargo and improve handling efficiency, while correct loading and securing reduce damage and safety risk. Dangerous goods and cold chains require specialized classification, segregation, monitoring and contingency controls.

Digital systems, automation and analytics can improve visibility and decision quality, but they depend on accurate data and effective governance. Managers should evaluate inventory and warehouse choices through total cost, customer service, resilience, regulatory compliance, worker safety and sustainability rather than through isolated cost measures.

Key Terms

Inventory positioning: Deciding where stock is located within a supply network.

Cycle stock: Inventory used to meet normal demand between replenishments.

Safety stock: Additional inventory held to protect against uncertainty.

Pipeline inventory: Goods in transit that have not yet become available for use or sale.

Reorder point: Inventory position at which replenishment should normally be initiated.

Lead-time variability: Fluctuation in the time required to replenish inventory.

Postponement: Delaying final configuration or allocation until demand is clearer.

Bonded warehouse: A facility where eligible goods remain under customs control before release.

Cross-docking: Moving inbound goods to outbound dispatch with minimal storage.

FEFO: First-expired, first-out inventory issue discipline.

Lot control: Tracking goods by production or batch number.

Unitization: Combining packages into a handling unit such as a pallet.

Containerization: Using standardized containers for intermodal movement.

Cargo securing: Restraining cargo against movement during handling and transport.

Dangerous goods: Goods presenting potential risks to health, safety, property or the environment.

Cold chain: Controlled-temperature logistics from origin to final use.

Warehouse Management System: Software coordinating warehouse inventory and activities.

Inventory record accuracy: Agreement between system records and physical stock.

Control tower: A coordinated visibility and exception-management capability across logistics activities.

Total landed cost: Combined cost of purchase, transport, duties, handling, inventory and related logistics activities.

Review Questions

Short Answer Questions

1. What is the difference between cycle stock, safety stock and pipeline inventory?

2. Why can a longer but reliable international lead time require less safety stock than a shorter variable lead time?

3. Distinguish FIFO from FEFO and identify an application for each.

4. State four functions performed by export packaging.

5. Why is temperature monitoring alone insufficient for cold-chain control?

Long Answer Questions

1. Explain how centralization and decentralization affect international inventory cost, service and risk.

2. Describe the major processes in a cross-border warehouse from receiving through dispatch.

3. Discuss the design considerations for packaging, unitization and containerization of export cargo.

4. Explain the governance requirements for storing and handling dangerous goods.

5. Evaluate the role and limitations of WMS, TMS, sensors, automation and artificial intelligence in international logistics.

Analytical / Application Questions

1. Daily demand is 80 units, average replenishment lead time is 25 days and safety stock is 500 units. Calculate the reorder point and explain which operational conditions would require revising it.

2. A company has high warehouse utilization, rising picking errors and frequent dispatch delays. Diagnose the likely trade-off and recommend a performance-improvement plan using at least four metrics.

3. A pharmaceutical shipment experiences a border delay and a temperature excursion. Develop an immediate response and a longer-term network-improvement plan, identifying responsibilities, data requirements and compliance considerations.

22. Multiple Choice Questions with Answers

Question 1

A firm centralizes inventory in one regional distribution centre primarily to gain which benefit?

A. Complete elimination of customs procedures

B. Pooling of demand variability and potentially lower safety stock

C. Guaranteed shorter delivery time to every customer

D. Removal of all transportation risk

Correct Answer: B. Pooling of demand variability and potentially lower safety stock

Question 2

Daily demand is 100 units, average lead time is 20 days, and safety stock is 600 units. What is the reorder point?

A. 600 units

B. 1,400 units

C. 2,000 units

D. 2,600 units

Correct Answer: D. 2,600 units

Question 3

Which inventory discipline is most appropriate when products have different expiry dates?

A. LIFO

B. FEFO

C. Random issue

D. Annual issue only

Correct Answer: B. FEFO

Question 4

What is the principal purpose of cross-docking?

A. To maximize long-term storage time

B. To transfer inbound goods to outbound dispatch with minimal storage

C. To avoid receiving inspections

D. To increase safety stock in every facility

Correct Answer: B. To transfer inbound goods to outbound dispatch with minimal storage

Question 5

Which statement best describes pipeline inventory?

A. Damaged stock awaiting disposal

B. Stock reserved for seasonal demand only

C. Goods in transit and not yet available for use or sale

D. Inventory held after its expiry date

Correct Answer: C. Goods in transit and not yet available for use or sale

Question 6

A cold-chain operator has temperature sensors but no alert thresholds or response procedures. What is the main weakness?

A. Sensors cannot record temperature

B. Monitoring is not connected to corrective decision-making

C. Cold chains never require monitoring

D. Temperature excursions are always harmless

Correct Answer: B. Monitoring is not connected to corrective decision-making

Question 7

Which action is most directly associated with dangerous-goods compliance?

A. Using the cheapest available packaging

B. Correct classification, packaging, marking, labelling and documentation

C. Storing all substances in one location

D. Removing product identification to reduce theft

Correct Answer: B. Correct classification, packaging, marking, labelling and documentation

Question 8

A warehouse reports 98% space utilization but worsening picking delays. What is the most likely interpretation?

A. High utilization may be creating congestion and reducing accessibility

B. The warehouse has no inventory

C. Picking delays prove that demand is falling

D. Space utilization always measures service quality

Correct Answer: A. High utilization may be creating congestion and reducing accessibility

Question 9

Which technology combination most directly supports warehouse transaction accuracy and end-to-end logistics visibility?

A. Barcodes or RFID integrated with WMS and related enterprise systems

B. Paper records without reconciliation

C. Unconnected spreadsheets only

D. Manual estimates made after dispatch

Correct Answer: A. Barcodes or RFID integrated with WMS and related enterprise systems

Question 10

Why should international inventory decisions be evaluated using total cost rather than transport cost alone?

A. Transport cost is never relevant

B. Inventory, warehousing, duties, service failures and risk also affect economic performance

C. Total cost excludes customer service

D. Transport cost automatically includes all stockout costs

Correct Answer: B. Inventory, warehousing, duties, service failures and risk also affect economic performance