Benefit reversal theory, example of benefit reversal

"Benefit reversal" is a very common phenomenon in the field of logistics, and it is the reflection and manifestation of internal contradictions in the field of logistics. "Benefit reversal" refers to the contradiction between the profit and loss between several functional elements of logistics, that is, the optimization of a functional element and the occurrence of benefits at the same time, there will inevitably be the loss of interests of another or several functional elements, and vice versa. This is a phenomenon of rising and falling, and this profit and loss, which often leads to the inefficiency of the entire logistics system, and ultimately damages the interests of the functional elements of the logistics system.

Logistics management. This theory is called the "benefit reversal theory", also known as the "benefit reversal principle".

The "effect reversal principle" specifically reflects that after the cost of one function rises, the other will inevitably decline; In other words, if one service level increases, it will inevitably increase the cost of another function. For example, in order to meet the needs of customer distribution speed, enterprises have established a number of logistics bases in some areas, so as to improve the distribution speed and better meet customer needs, but on the other hand, the logistics and distribution costs of enterprises have increased, because this work requires the purchase of corresponding vehicles in these areas and the increase in a series of costs such as management and staff.

The so-called "effect reversal principle" refers to the fact that the cost of one of the seven basic functions in logistics management will rise, and the other will inevitably decline; In other words, if one service level increases, it will inevitably increase the cost of another function. For example, in order to meet the needs of customer delivery speed, enterprises have established a number of logistics bases in some areas, which improves the distribution speed and better meets customer needs, but on the other hand, the logistics and distribution costs of enterprises have increased (such as purchasing corresponding vehicles in these areas and increasing a series of costs such as management and staff).

Therefore, this phenomenon is called the principle of benefit reversal in logistics management.

That is, the contradiction of the two laws, is Kant's philosophical concept. It refers to the phenomenon that two theories or theories formed on the same object or problem are mutually contradictory but mutually valid, and are also translated as contradictory to each other.

Kant first set up reason as a synthesis of sensibility and intellect. The categories on which intellect depends are a priori, consisting of twelve categories, such as quantity, quality, relationship, and style. When reason tries to use these categories to regulate a priori infinite, there is a failure of categories, that is, the contradiction of the two laws.

"Benefit reversal" is a very common phenomenon in the field of logistics, and it is a reflection and manifestation of internal contradictions in this field. Benefit reversal refers to the contradiction between the profit and loss between several functional elements of logistics, that is, the optimization of a functional element and the occurrence of benefits at the same time, there will inevitably be the loss of interests of another or several other functional elements, and vice versa.

This is a phenomenon of rising and falling, and although this phenomenon exists in many fields, the problem seems to be particularly serious in the field of logistics. There are many strong empirical evidence to support the benefit reversal, for example, the packaging problem, under the premise that the product sales market and sales are unchanged, assuming that other cost factors are also unchanged, then every penny less spent on packaging, this penny will inevitably be transferred to the income, the more expensive the packaging, the higher the profit.

However, once the goods enter circulation, if the simple packaging reduces the protective effect of the product, caused a large number of losses, it will cause storage, loading and unloading, transportation functional elements of the work deterioration and efficiency greatly reduced, obviously, the benefits of packaging activities are at the expense of other losses, China's circulation field every year due to poor packaging of tens of billions of commodity losses, is the empirical evidence of this benefit reversal.

It refers to the contradiction between the elements of several functions of logistics. (While one functional element is optimized, there must be a loss of interest from another element or several elements.)

Hello dear, I am glad to answer for you: the examples of benefit reversal are as follows; (1) reduce the number of warehouses in the logistics network and reduce inventory, which will inevitably make the inventory replenishment change frequently and increase the number of transportation rights; (2) simplifying packaging, although the packaging cost can be reduced, but due to the reduction of packaging strength, the damage rate of bright slag unloading in transportation and base mu will increase, and when placed in the warehouse, it can not be stacked and put too high, and the storage efficiency is reduced; (3) Changing railway transportation to air transportation, although it increases the freight, it improves the transportation speed, which can not only reduce inventory, but also reduce inventory costs.

Hello, I am happy to serve you, 1, the benefits of the various functional activities of logistics such as reducing the inventory of each storage network, will inevitably increase the frequency of inventory **, increase the number of transportation. Simplifying packaging, although reducing costs, but reducing the strength of packaging, will increase the damage of goods in transportation and handling. The warehouse should not be stacked too high to reduce the storage efficiency of the goods.

Although the railway transportation is changed to aviation, the freight is increased, but the transportation speed is improved, the inventory is reduced, and the inventory cost is reduced. 2. The contradiction between the efficiency of logistics cost and service level is to improve logistics services and increase logistics costs, and there is a contradiction between them. However, there is a non-linear relationship between logistics costs and logistics services.

In the low-level stage, the additional cost of logistics can rise significantly, and in the high-level stage, the additional cost and service level increase are not large.