ECONOMICS OF LOGISTICS FUNCTIONS IN A COMPANY

Economics function is part of business economics that studies the rational resource utilization by individual business processes of a company for the purpose of maximizing its efficiency. Economics of logistic functions refers to rationalization of resource utilization in the logistics sector. Business functions of a company in terms of logistics are the following: supply logistics, production logistics, distribution logistics and warehouse logistics. Economics imbues the relationship between logistics and other functions of a company such as marketing, marketing mix, production and supply for the purpose of reducing costs and increasing profit. In functional terms, a logistics system is always a subsystem of an economic organization of a company including other subsystems such as sales, research and development, financing and public relations, all of which have the same economic goal.