Question

What is operational logistics costs? what should we include as the operational logistic costs for an...

What is operational logistics costs? what should we include as the operational logistic costs for an online ticket booking service website? Please list all the possible costs that consider as the operational logistic costs for the financial projection plan.

Homework Answers

Answer #1

For an online ticket booking service, the possible operational logistics costs are :

  • running costs (not capital investment) of physical server or cloud software used by the website
  • Any cost incurred for each ticket booking. This could be cost relating to server, charges paid to third-party service providers, etc.
  • In case of physical delivery of tickets, costs incurred in printing and shipping the tickets
  • Any annual or monthly license fee paid to third-party ticket-management firms
  • costs of email service used
  • costs of SMS service used (for booking confirmation, 2FA etc.)
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