Lesson 6 Flashcards
the largest expenditure in logistics (60% of total logistics spend)
transportation
who are responsible for moving inventory around a firm’s supply chain?
transportation managers
this helps a firm provide service and reduce cost, inventory, storage, and materials handling
transportation
what could be a MAJOR BARRIER to a successful supply chain when not managed effectively and efficiently?
transportation
2 main functions of transportation functionality
product movement
product storage
movement of inventory to specified destinations
product movement
occurs while product is in transit or waiting to be moved or unloaded
product storage
this element is in-transit inventory is “captive”, usually inaccessible during transpo
restrictive element under product movements
this element is where inventory can be diverted during shipment to a new destination
flexible element under product storage
who are the transportation participants
public
government
carrier and agents
IT
consignor (shipper)
consignee (receiver)
5 modes of transpo modal structure
rail
highway
water
pipeline
air
has declined by over half since 1970; composed of carload, intermodal, container
rail
spans over 32,000 km across all regions of PH with key benefits including speed of transit and ability to operate door-to-door
more efficient than rail for small shipments
truck (highway)
oldest model of transpo but ranks between rail and truck in terms of fixed cost
water
HIGHEST fixed cost but LOWEST variable cost of all modes; unique transpo mode
operates 24/7, no emissions, no empty container or vehicle to return
NOT FLEXIBLE THO, limited to liquids and gas
pipeline
