Transport Fundamentals and Decisions(1) (2)

Transport Fundamentals and Decisions(1) (2) -...

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Transportation Fundamentals 1
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2 Transport Choices CR (2004) Prentice Hall, Inc. Primary intercity carriers - Air - Truck - Rail - Water - Pipe Coordinated services - Piggyback - Birdyback - Fishyback Small shipment carriers - UPS - Federal Express - Postal services - Bus Package Express Agents - Freight forwarders - Shipper associations Others - Autos - Bicycles - Taxis - Human - Electronic
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3 Importance of Modes CR (2004) Prentice Hall, Inc. By Products Hauled Air -- very high-valued, time sensitive products Truck -- moderately high-valued, time sensitive products. Many finished and semifinished goods. Rail -- Low-valued products including many raw materials Water -- very low-valued products moved domestically; can be moderate to high-valued if moved internationally Pipe -- generally limited to petroleum products and natural gas
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4 Performance Overview Relative Costs of Performance CR (2004) Prentice Hall, Inc. Price, Mode ¢/ton-mile Rail 2.28 Truck 26.19 Water 0.74 Pipeline 1.46 Air 61.20 Air generally fast over long distances and a fair degree of relative variability Water is very slow and moderately reliable Pipe is very slow but reliable Truck is moderately fast and reliable Rail is slower and less reliable than truck
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5 Rate Profiles By distance Rates vary with the distance between origin and destination in the following manner CR (2004) Prentice Hall, Inc.
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6 Pricing CR (2004) Prentice Hall, Inc. Geographic pricing methods - Single, or uniform, pricing - Zone pricing - F.o.b. pricing - Freight equalization - Basing point pricing Incentive pricing - Quantity discounts (volume pricing)
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Zone 8 $147.38 Zone 7 $144.81 Zone 6 $142.43 Zone 5 $140.00 Zone 4 $138.33 Zone 3 $137.38 Zone 2 $136.31 Boston UPS Pricing Zones CR (2004) Prentice Hall, Inc.
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Transport Fundamentals and Decisions(1) (2) -...

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