In most industries, there is a direct relationship between warhousing and transportation costs. In other words, the larger the warehouse, the more product tat can be stored, therefore, transportation costs tend to be lower. Alternatively, the smaller the warehouse facility, the more frequently product must be purchased, usually resulting in higher transportation cost. There are many variables indluencin which of the two in most important (perishable nature of product, security, product value, ect.) Select a product that is of interest to you, and discuss whether wearhousing or transportation (or both) should be the most important fucus, in terms of cost.