Module 1
Chapter Key Terms and Study Questions
Chapter 1 Key Terms
Business logistics – The process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements.
Deregulation – The removal or simplification of government rules and regulations that control or limit a company’s ability to act.
Globalization – Recognition that commercial activity now spans the world and that many firms buy and sell throughout the world.
Chapter 2 Key Terms
Economies of scale – As production of a good increases, the cost of producing each additional unit falls.
Eminent domain – The right of the state to take private property for public use.
Chapter 1 Study Questions
1. What are the major forces or external factors that have impacted our economy during the latter part of the 20th and early part of the 21st centuries? How has each of these factors influenced companies as well as their respective supply chains? Which of these factors do you feel is the most important for a computer company? Why?
The environment surrounding the U.S. economy and various global economies, has experience a rapid change during the latter part of the 20th and early part of the 21st centuries. This change is largely due to the need of companies to increase efficiency and effectiveness to remain fundamentally competitive. Change within these companies is driven by an array of external factors to include globalization, technology, supply chain integration and consolidation, consumer empowerment, and government regulation and policy. Globalization is of significant importance due to an increase in the importance of transportation because of the longer shipping distances and transit times, as well as increasing risk. Technology can directly enhance the effectiveness and efficiency of a company’s operational processes. Additionally, technology requires constant change because of new innovations in hardware and software. Companies are forced to keep up with these changes or risks perish. Nonetheless, technology can help to create a dynamic and increasingly competitive environment that promotes the development of new business and different approaches to business in industries including transportation and related supply chain services.
The Essay on The Changing Global Economy
The argument for globalisation is an argument for International trade. Classical liberal economists have always argued for the free movement of all factors of production. Adam Smith had declared that nations have absolute advantaged that they leverage to provide cheaper and more efficient production processes. David Ricardo argues in his theory of Comparative advantages that countries must utilize ...
The third factor impacting our economy is the consolidation and integration among retailers, wholesalers, and other members of channels of distribution. Retailers have realized the importance of efficient and effective supply chains for delivering the best value-price combination for the consumers. Transportation companies within the supply chain have also recognized this importance by requests such as scheduled deliveries, special packaging, advanced shipment notices, and other related services. The fourth factor is the enlightened consumer. These consumers are empowered by education, income, and information via the Internet and other media sources. Consumers are now able to acquire the best price-value proposition for each situation. All in all, 24/7 operation, one-stop shopping, Internet search and buy, or customization of products, retailing operations have dramatically changed and have changed the way that supply chains must function. Finally, government policy and regulation have played a significant role in supply chains and services. Following the deregulation during the early 1980’s, competitiveness between organizations drastically increased. However, as business increased so did the need for increased transportation.
The Essay on Price Elasticity of Demand of Newspapers
The price elasticity of demand measures the responsiveness of quantity demanded to a change in price. In other words, it measures by how much the quantity demanded will vary if there is a change in price. If a small decrease in the price of the product causes a huge increase in the quantity demanded, then the product is said to be price elastic. When the demand is price elastic, a fall in price ...
Companies have had pressure placed upon them to minimize their carbon footprint as a result of this increase in transportation need. Additionally, safety, security, trade relations, and taxes are also important issues for businesses and their supply chains. All of these areas are directly affect by government regulation and policy. As policies are changed, businesses are required to adhere to these changes and adjust to the newly implemented requirements. Of all these factors, a computer company would probably be most impacted by technological changes. In a world where technology, especially computer hardware capacity, is changing exponentially each day, companies are forced to keep up with these advances or quickly risk is outdated. Nonetheless, all the factors have significant impact on the every changing global economy. If these factors are not acknowledged, business will be unsuccessful.
4. What is meant by the concept of derived demand? Why is it so important in the area of transportation for shippers and carriers? Does this concept have application in other areas? Give some examples.
The concept of derived demand can best be described as the demand placed on a good or service as a result of changes in the price for some other related good or service. The demand for transporting a product from a given location depends on the existence of demand to consumer or use that product in the distant location. This concept can be applied areas other than transportation such as the demand for raw materials. The demand for raw materials is directly impacted by the demand for the finished product produced from these materials. An example of derived demand can be demonstrated by the demand for coal. The demand of coal leads to derived demand got mining, as coal must be mined in order for coal to be consumed. When the demand for coal increased, its price also increases. This increase in price leads to a higher demand for the resources used for coal mining.
6. The aggregate demand for transportation service is said to be inelastic while the demand for an individual mode or carrier is often elastic. Explain why this is important to carriers and shippers.
The Essay on Efficiency Increasing System by Using Preheating Method
EFFICIENCY INCREASING SYSTEM BY USING PREHEATING METHOD METHODOLOGY The concept of increasing the fuel efficiency of a petrol engine in this project, is to pre-heat the intake air which is flowing through the carburetor. The humidity in the atmospheric air affects the petrol vapourisation in the carburettor. Therefore, by pre-heating the inlet air to the carburettor for a considerable amount, the ...
The aggregate demand for transportation service is inelastic because freight rate reductions will not dramatically increase the demand for freight transportation. This is due to the fact that transportation costs generally represent, in the aggregate, less than 4 percent of a product’s landed cost, and the demand is a derived demand. On the other hand, demand for an individual mode or carrier is often elastic or price sensitive. Reductions in rates charged by a particular mode will usually result in increases in the volume of freight by that mode, other things being equal.
Chapter 2 Study Questions
2. “Transportation is the most important factor for economic development.” Defend this statement.
Without transportation, economic development would be stagnating. Transportation infrastructure, for example, directly supports the flow of commerce with our country and the global flow of goods and services into and out of our county. Transportation systems provide the necessary critical links between producers and consumers, domestically and globally. These systems are vital for businesses to produce and sell their products and services. Transportation also affects a society’s political and cultural development through travel and communication. Societies are development based on the ideas, cultures, and experiences of its citizens. People are now able to live well outside of city, but travel to the city each day by the means of these transportation systems. This draws individuals to a city, increasing population, and increasing economic needs. Cities would be unsustainable without a well-developed transportation system.
9. While improved transportation systems provide economic benefits, there may be some associated environmental costs. What are the major environmental costs associated with transportation, and what are their potential negative impacts?
The Term Paper on Intelligent Transportation Systems Architecture
The most challenging task at present is to obtain information about the roads in the network of city that is growing gradually. In order to overcome this issue, the ITS (Intelligent Transportation System) was originated so that the unique features will be benefited by the general public and information about the road can be obtained (Jin and Lin, 2011). The ITS is based on the technology of ...
Although transportation systems provide great economic benefits, they come with various economic costs. Transportation affects air quality through pollution, noise, and water quality. Pollution is a side effect of transportation mainly due to the use of internal combustion engines. As these pollutants are being released into the atmosphere, acid rain can develop as a result. These acid deposits have an adverse impact on aquatic systems, crops, forests, human health, and visibility. These emissions also contribute to the greenhouse effect and related climate changing issues. Additionally, because of the release of CFC’s from refrigerants holes in our ozone layer have begun to develop resulting in health-related issues and an increased risk of skin cancer. Another environmental concern related to transportation is the adverse effects on the marine environment. Because of oils spills, garbage dumping, hazardous material losses, etc. the marine life is suffering. Furthermore, water quality for surface water and as a drinking source has been impacted by these transportation systems. These waters are highly susceptible to these pollutants. Although there are numerous governmental controls and regulations prohibiting much of this activity, it remains difficult to prevent these actions. Next, noise is a factor that ultimately results in annoyance and health issues. Although the government has implemented noise abatement law within certain area, these regulation are also difficult to execute.
