Transportation mode as a percentage of total volume
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36.5% rail
24.9% trucks
16.3% Inland waterways
22.0% Oil pipelines
0.3% Air
Primary intercity carriers
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-Air, truck, rail, water, pipe
,Special service charges:
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-Extra charges
-Stop off privilege example
Reasons against keeping inventories(3):
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1. They consume capital resources that might be put to better use
somewhere else in the firm
2. They too often mask quality problems that would more immediately be
solved without their presence
3. They divert management's attention away from careful planning and
control of the supply and distribution channels by promoting an insular
attitude about channel management
Traveling salesman problem:
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What is the most efficient way to visit locations?
Manufacturing(plants and warehouses) nature of location analysis:
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, -Decisions are driven by economics
-Relevant costs are like transportation costs, inventory carrying costs, labor
and taxes are traded off against each other
Small shipment carriers:
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-UPS, federal express, postal services, bus package express
Transport Choices:
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1. Primary intercity carriers
2. Coordinated Services
3. Small shipment carriers
4. Agents
5. Others
Water Products
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36.5% rail
24.9% trucks
16.3% Inland waterways
22.0% Oil pipelines
0.3% Air
Primary intercity carriers
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-Air, truck, rail, water, pipe
,Special service charges:
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-Extra charges
-Stop off privilege example
Reasons against keeping inventories(3):
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1. They consume capital resources that might be put to better use
somewhere else in the firm
2. They too often mask quality problems that would more immediately be
solved without their presence
3. They divert management's attention away from careful planning and
control of the supply and distribution channels by promoting an insular
attitude about channel management
Traveling salesman problem:
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What is the most efficient way to visit locations?
Manufacturing(plants and warehouses) nature of location analysis:
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, -Decisions are driven by economics
-Relevant costs are like transportation costs, inventory carrying costs, labor
and taxes are traded off against each other
Small shipment carriers:
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-UPS, federal express, postal services, bus package express
Transport Choices:
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1. Primary intercity carriers
2. Coordinated Services
3. Small shipment carriers
4. Agents
5. Others
Water Products
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