Transportation: Critical link in the SC

Transportation: Critical link in the SC

1. Demand

   • Interrelationship transportation-mass production

2. Measures

   • Ton-Mile
   • Passenger-mile

3. Demand Elasticity

   • Elastic
     • Sensitivity of customers if price change
   • Inelastic
     • Customers are not sensitive if price change

4. Freight Transportation

   • Derived Demand
     • The demand depends on the consume/use of a product in a different location
   • Value of service
     • Impact of TC and service on the demand
     • Landed Costs = OC+TC+(E or LC)

5. Service Components of FD

   • Transit Time
   • Reliability
   • Accessibility
   • Capability
   • Security

6. Supply Chain Management

   • Conduit for the effective and efficient flow of products thorugh the stages
   • Extended enterprise
   • Reverse logistics
     • Returning products
   • Information Flow
     • Avoid Bull Whip Effect

7. Coyle, Novack, Gibson, Bardi. (2011). Transportation, A Supply Chain Perspective. 7th Edition. South-Western Cengage Learning

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