Chapter three study questions

Chapter three study questions

1.

Discuss the role of transportation information and how it supports network visibility, control, and service consistency.

Transportation is an essential factor that links various channels of the supply chain. Useful transportation network makes sure that fuel, food as well as medical facilities are available to people via different waterways, airways, and roadways. People and goods are transported from one place to another, using vehicles, ships, rails, cars, busses, trucks, and flights. Transportation plays a vital role during the shipping of information and when supporting the visibility of network, control, and consistency of services. The transportation department and agencies are responsible for collecting the right information about where to deliver medical facilities, food, fuel, and services. Transportation uses technology to maintain control of goods and promote timely and safe arrival of products at points of destination.

2.

Describe the attributes of information and how they impact transportation decision making

Effective transportation and decision making depend on the information that meets quality standards, supports decision making, and readily flows. Quality information is an essential factor that ensures the flow of data across the transportation network. Proper information system aims at communicating, assisting in decision making, and capturing to allow appropriate management of the flow of vehicles and transportation means. Technology is also integrated to analyze and obtain the required information.

5.

How can a company facilitate smooth and timely implementation of a TMS?

Companies use the Transportation Management System (TMS) software for measuring, planning, and executing transportation. TMS is the key performance indicator and helps professionals of transportation to make scorecards for a reason for decision making. Companies facilitate timely and smooth implementation of TMS by determining the fundamentals to benefit select the best software. The company should also ensure that there is proper training on the software and also make sure that there are enough vendors to increase the sharing of information and increase connectivity..

6.

What options are available for procuring transportation software? Why would a company pursue each option?

The company which works with intense computational activity should start by licensing software from vendors and later install it in buyers’ system. The company will have to pay for the software update, maintenance, and upfront. Customers will have to buy hosted software and install it in housing owned by the company. The software offers backups and secure data centers, although the service is lost when the internet goes out. SaaS model is the last option that is accessed through the internet. Its installation does not require licensing.

8.

Discuss how transportation professionals are deploying technology in their quest to minimize freight theft.

Freight theft is a threat to national security and the economy of a country. Technology is being used by transportation professionals to lower freight theft in various ways. Shippers of freight and transportation providers should take the safety of cargo seriously. Transportation professionals are implementing strong cybersecurity that prevents and recognizes cyber-attacks that are commonly used to commit freight theft. Companies are required to their websites and the information they make available to the public.

Chapter four study questions.

1.

Compare and contrast pure competition with monopoly from a pricing perspective. If you were a shipper, which would you prefer? Which would a carrier prefer?

Monopoly and pure competition are similar because they both must cost to relate to what the market bears for them to make a profit. They differ in different ways. Monopoly enjoys complete restriction, while pure competition enjoys unrestricted entry to the market. In a monopolistic market, only one seller for a product is allowed, while pure competition allows many sellers for a product. In a monopolistic market, there is no similar suitable product, while in pure competition, customers enjoy similar substitutes for products. As a shipper, I would go for a monopolistic market since it’s the most profitable in a market structure. Carrier preference will depend on the rate of usage of a commodity and the market served; hence a monopolistic market is preferred only when the product is unique.

4.

What is cost-of-service pricing? What is the relationship between value-of-service pricing and cost-of-service pricing?

Cost-of-service is a term used to describe the rate of structure based on prices for marginal cost. The organization here is required to make equal prices of commodities or base them on the average cost. The relationship between the two is that they give the industry more choices and play a vital role in the pricing of commodities.

5.

What is released value rate and how does its use affect a shipper’s transportation cost?

Release value rates refer to the prices that are lower compared to the regular full-value rate, which provides for the updated value for the competition of the carrier. It helps a lot in cases where loss or damage occurs. Release value rates only require a certain limited dollar amount for carrier obligations for per pound shipments. Applies typically to Air, truck, and rail hauled products. Shippers reap the benefit from this mode of shipping cost since its usually cheaper hence the company can save a little money.

6.

What are the major forces that affect carrier pricing strategies?

Competitors, tariffs, government, market rates, channel members, and costings are the main forces that affect the government. Pricing strategies use customers, price elasticity, and market trends to determine what to pay for the service offered. Pricing strategies must respond when prices are raised by competitors or price leaders.

8.

What are the various factors used in classifying commodities for tariff purposes?

Various commodities are classified differently in terms of tariffs. Food items are classified in terms of non-perishable and perishable. Other products like electronic instruments and medical items are divided according to the nature or method of production.

References

Coyle, J. J., Novack, R. A., Gibson, B., & Bardi, E. J. (2015). Transportation: a global supply chain perspective. Cengage Learning