BMGT372-Ch9S

BMGT372-Ch9S - 1 BMGT 372 INTRODUCTION TO LOGISTICS SCM Class 14 Chapter 9 Transportation Operations Fall 2011 2 Agenda Starbucks presentation

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BMGT 372 INTRODUCTION TO LOGISTICS & SCM Class 14 Chapter 9: Transportation Operations Fall 2011 1
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Agenda Starbucks presentation Transportation economics Transportation administration Transportation pricing 2
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Transportation Economics 3 Figure 1.1 The Integrated Supply Chain Framework
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Transportation Economics Economic drivers Distance Weight Density Stowability Handling Liability Market 4
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Transportation Economics Costing Variable – direct costs associated with the movement of a specific load Fixed – expenses incurred regardless the level of activity Joint – costs implied by a decision to provide a service Common – carrier overhead costs 5
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Transportation Economics Carrier pricing strategy 6 Cost-of-Service “Cost plus” Low-value goods Highly competitive Conservative profit margins Value-of-Service Perceived value High-value goods Limited competition Premium profit margins Net-Rate Simplified structure All-inclusive price
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This note was uploaded on 12/03/2011 for the course BMGT 372 taught by Professor Staff during the Fall '08 term at Maryland.

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BMGT372-Ch9S - 1 BMGT 372 INTRODUCTION TO LOGISTICS SCM Class 14 Chapter 9 Transportation Operations Fall 2011 2 Agenda Starbucks presentation

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