Transportation Mode refers to the type of carrier or conveyance used to move goods within a supply chain, such as truck, rail, air, sea, or pipeline. Each mode has distinct cost structures, speed, capacity, and reliability characteristics.Choosing the right transportation mode is critical for inventory optimization as it impacts lead times, inventory holding costs, and service levels. Multimodal transportation strategies combine modes to balance cost and speed, helping companies meet customer demands while controlling inventory investment.
