Om 441 Transportation

Mailani Hernandez

OM 441 Transportation

Chapter 5

5.2) Motor carriers during the 21st century have increased economic development through the increased transport of goods. One advantage of motor carriers is the volume of smaller parcels they carry, from 2003 to 2008, trucking was able to carry over 8 billion tons more at a distance of 1.2 trillion miles. This increase can be attributed to businesses using motor transport for near deliveries. As a result, this method of transportation is often used by logistics company as it provides flexibility to varying market conditions.

5.7) The motor carrier industry requires low investments, most costs are 90% variable, compete on price, carry high valued products, and they operate in a pure competition. Combined, motor carriers are not restricted to the areas they serve providing faster delivery times, volume discounts, lower inventory levels, and low carrying cost to shippers. Combined, these characteristics allow the industry to grow and provide better response to the needs of customers.

Chapter 6

6.6) Overexpansion of track in the 1916 resulted in the abandonment of rail tracks to competitive. In 1980, the government deregulated rail companies and became lax on how to sell, buy, or abandon rail tracks increasing tracks that were unfit for use. This trend will continue in the future if the rail companies decide to reroute, reduce unprofitable tracks, and in order to remain ahead of the competition.

6.7) Cars were designed to meet shippers’ requirements allowing for specialization to be implemented. This further attracted larger companies and increased service by volume. Also, customers enjoy the benefit of receiving items intact allowing for the transport of high valued, fragile, or biohazard chemical products.

Chapter 7

7.2) Air is able to traverse long distances in short amount of time becoming one of the fastest methods of transportation, air travel. Air is able to impact levels of inventory by reducing lead times allowing for items that may be critical or need to be shipped in a prompt manner. However, this method also is one of the more expensive than truck or rail.