Importance of a Transport in Firms Supply Chain Operations - Assignment Example

The type of carrier used dictates a manufacturing plant’s materials handling equipment, such as loading and unloading equipment and the design of the receiving and shipping docks. An order-management methodology that encourages maximum consolidation of shipments between common points enables a company to give larger shipments to its carriers and take advantage of volume discounts. Customer service goals influence the type and quality of carrier and carrier service selected by the seller
2. Why is it important to know about the characteristics of a country’s transportation infrastructure?

Transport infrastructure such as roads, ports, and airports is indispensable for a country's economic activity and is characterized such that its appropriate provision justifies or calls for the involvement of the public sectors. There are three principles on the question of who should bear the costs of a large-scale facility such as transport infrastructure: the user pay principle, the indirect beneficiary pay principle, and public financing. Institutional arrangements for developing transport infrastructure include public corporations, special budget accounts, and private finance initiatives (PFI), which tap private sector resources. Transport infrastructure such as harbors, airports, and roads is usually provided with some form of public involvement within a variety of institutional frameworks. The globalization of the world economy means that an increasing number of shipments are being transported between multiple countries.

10. Discuss the positive attributes of inland water transportation?
Inland water transport is relatively inexpensive to users. At one time inland water was considered to be the least expensive form of transportation when compared to rail and motor carrier transportation. On a ton-mile basis, rail cost is approximately twice as high as inland water carriers, whereas truck costs are approximately 20 times higher than inland water carriers. Although inland water carriers tend to focus on lower bulk commodities that can be handled by mechanical means such as pumps, scoops, and conveyors, many different kinds of products can be carried. Other products that move extensively in the inland waterway systems include grain and grain products, industrial chemicals, and forestry products. And of the modes with the vehicle, inland water carrier offers the greatest capacity or volume that can be carried at one time.
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2. Discuss the factor that influences the number of facilities that a firm chooses to operate
The number of firms facilities that decide to operate often depends on the success of the business. Assuming the business is successful the company may decide to open new firms if the demand is higher than the supply. For example, if the business of the Jewel food stores increases they may decide to open new distribution centers based upon this increase. This is to ensure that the supply will meet the demand. Opening new distribution centers may allow a shorter time for the delivery of products. However, opening a new distribution center is also associated with costs. The company must analyze these costs to determine if opening a new firm will generate revenue.

8. Discuss the advantages and disadvantages of locating manufacturing, assembly, or distribution facilities in countries with relatively low wages.
The advantages and disadvantages of opening o relocating a distribution center to a country with low wages vary. The natural good produced in the prospective country may help or hinder the process. For example, a company that produces high revenues from canned tuna may want to locate a facility close to the ocean. One disadvantage to this situation is that the company will have to pay for the assembly of a new facility. Although the cost of labor may be cheap other disadvantages may outweigh these considerations. Manufacturing a safe product is always important. Products that are not deemed safe or inflict a safety risk may be recalled causing a mass loss of revenues.
In addition, the company needs to consider the shipping costs associated with the distribution center. The cost of shipping mass production of products may outweigh the cheap labor associated with the location.

16. what quality of life considerations do you think are the most important for locational decisions? Why?
Quality of life is often assessed in a location before a company opens up a firm. Studies have found that individuals exhibiting a high level of quality of life characteristics assessed by the quality of life assessment are more loyal and happy in their work. The quality of life in another location may hinder the recruiting process. For example, expatriated workers may have a high turnover rate when sent to a location with a poor quality of life. The final reason the quality of life is assessed by companies is that consumers are aware of the happenings within the company. For example, in the 1990s the company Nike was infamous for sweatshops. Negative public views can hinder the company’s growth. Read More