Economic Trade‐Offs in Physical Distribution — A Pragmatic Approach

Abstract

It is often stated that a trade‐off occurs when a cost increase in one field is over‐compensated by a cost reduction in another field, resulting in an overall improved situation. Economic Trade‐offs (ETOs) are calculations intended to support decision making in respect of business activities. In this respect an ETO is, of course, only an aid and not a goal in itself.