. The __________ the profit margin, the ____________ the revenue equivalent for a given logistics cost savings.
a) Higher- higher
b) Lower- higher
c) Both a and b are correct
d) None of the above
Expert Answer
The lower the profit margin, the higher the revenue equivalent for a given logistics cost savings.
This is because Supply Chain Cost saving = Profit margin * Revenue Equivalent , so when profit margin will increase revenue equivalent will decrease and vice-versa.