Transportation costs lowest when large quantities of items are transported between stages of the supply chain.
Hold items to accumulate enough to combine shipments
Lead times can be reduced if items are transported immediately after they are manufactured or arrive from suppliers.
Cannot be completely eliminated
Information can be used to reduce its effect.
Control transportation costs reducing the need to hold items until a sufficient number accumulate.
Improved forecasting techniques and information systems reduce the other components of lead time
may not be essential to reduce the transportation component.