Why transportation costs initially decrease

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Explain why transportation costs initially decrease as the number of warehouses in a system increase; why transportation costs eventually increase as the number of warehouses increase; and why inventory costs increase as the number of warehouses in a system increase. Note, your answer should use complete sentences, and be free of spelling and grammar errors.

Reference no: EM131715142

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Why transportation costs initially decrease : Explain why transportation costs initially decrease as the number of warehouses in a system increase;

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