Chapter 7 Flashcards
Example of mode of transportation and logistics
Motor Carries
Rail Carries
Air Carries
Water Carries
Pipeline Carries
is necessary for moving purchased materials from suppliers to buyers, moving WIP materials within a firm, moving finished goods to customers, returning or recycling goods, and also storing these items along the way in supply chain.
Logistics
are needed for commerce to exist in any industrialized society.
Effective logistics system
creates time utility by determining how deliveries can be made in a timely manner and where items should be held prior to delivery.
Logistics function
is created when customer get things delivered to their desired locations.
Place utility
The process of planning, implementing, and controlling procedures for the efficient and effective transportation and storage of goods including services and related information from the point of origin to the point of consumption for the process of conforming to customer requirements.
Logistics
for ____ in particular, __ is what creates the flow of goods between supply chain partners, such that costs, service requirements, competitive advantage, and profits can be optimized.
supply chain
logistics
moving people and things from one place to another
transportation
LEGAL FORMS OF TRANSPORTATION
For-hire transportation services companies are classified as:
Common carriers
Contract carriers
Exempt carriers
Private carriers
offer transportation services to all shippers at published rates between designated locations.
Common carriers
must offer transportation services to the general public without discrimination, meaning they must charge the same rates for the same service to all customers.
Common carriers
legally bound to carry all passengers or freight as long as there us enough space, the fee is paid, and no reasonable grounds to refuse exist.
Common carriers
Serves the general public
Common carriers
might also be common carriers, however, as such, they are not bound to serve the general public.
Contract carriers
serve specific customer under contractual agreements
Contract carriers
Typical contacts are for movement of a specified cargo for a negotiate and agreed-upon price.
Contract carriers
some __ have specific capabilities that allow them to offer lower prices than common carriers might charge for the same service.
Contract carriers
exempt for the regulation of services and rates.
Exempt carriers
transport certain exempt products such as produce, livestock, coal, garbage, or newspaper.
Exempt carriers
school, buses, taxis, and ambulance is an example of ________
Exempt carriers
was originally established to allow farmers to transport agricultural products on public roads, but today the status has been broadened to include a number of commodities
Exempt status
T.o.F
All carriers can also act as exempt carriers for these specific commodities and routes
True
not subject to economic regulation and typically transports goods for the company owning the carrier.
Private carriers
Firm transporting their own products typically own and operate fleets of trucks and/or airplanes, large enough to make transportation less what it would be if the firm hired a transportation provider.
Private carriers
_________ and _______ of product movement also play a major roles in the ownership of the private carriers
Flexibility and control
are the most flexible mode of transportation and account for 70% of all the freight tonnage moved in the United States which is by far the largest of the five modes.
Motor carriers (or trucks)
offer door-to-door service, local pick up and deliver, and small well as large shipment hauling.
Motor carriers
it has a low fixed and variable costs, can compete favorably with rail and air carriers for short medium hauls (distances shorter than 1,000 miles), and still competitive with other form of transportation for long cross-country shipments, particularly if there are multiple delivery locations.
Motor Carriers
Can also offer a variety of specialized services from refrigerated, to livestock, to automobile hauling.
Motor Carriers
Most often classified as less-than-truckload (LTL) carriers or truckload (TL) carriers.
Motor carriers
moved small packages or shipment that take up less than one truck load, and shipping fees are higher per hundred weights (cwt) than TL fees, since the carrier must consolidate many small shipments into one truckload and then break the truckload back down into individual shipments at the destination for individual deliveries.
LTL Carriers
using ___ is much less expensive alternatives than using a __ carrier
LTL carriers
LT carrier
can also be classified based on type of goods they haul
Motor carriers
carry the majority of goods shipped in the united states
General freight carriers