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Chapter 8 - Assignment Example

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Chapter 8

dictates a manufacturing plant’s materials handling equipment, such as loading and unloading equipment and the design of the receiving and shipping docks. An order-management methodology that encourages maximum consolidation of shipments between common points enables a company to give larger shipments to its carriers and take advantage of volume discounts. Customer service goals influence the type and quality of carrier and carrier service selected by the seller
Transport infrastructure such as roads, ports and airports is indispensable for a country economic activity, and is characterized such that its appropriate provision justifies or calls for involvement of the public sectors. There are three principles on the question of who should bear the costs of a large-scale facility such as transport infrastructure: the user pay principle, the indirect beneficiary pay principle and public financing. Institutional arrangements for developing transport infrastructure include public corporations, special budget account and private finance initiative (PFI), which tap private sector resources. Transport infrastructure such as harbors, airports, roads are usually provided with some form of public involvement within a variety of institutional frameworks. The globalization of the world economy means that an increasing number of shipment are being transported between multiple countries.
Inland water transport is relatively inexpensive to user. At one time inland water was consider to be the least expensive form of transportation when compared to rail and motor carrier transportation. On a ton mile basis, rail cost approximately twice as high as inland water carriers, whereas truck cost are approximately 20 times higher then inland water carrier. Although inland water carriers tends to focus on lower bulk commodities that can be handle by mechanical means such as pump, scoop, and conveyor, many different kind of product can be carried. Other product that move extensively ...Show more

Summary

Inventory requirements are influenced by the mode of transport used. High-speed, high-priced transportation systems require smaller amounts…
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