Chapter 9 Management of Business Logistics, 7 th Ed. 1 Learning Objectives- After reading this chapter, you should be able to do the following: ? Explain the economic role transportation plays in the economy. ? Discuss the economic and service characteristics of the basic modes. ? Describe the carrier selection process. ? Discuss the economic effect of rates, transit time, reliability, capability, accessibility, and security in the carrier selection decision. Chapter 9 Management of Business Logistics, 7 th Ed. 2 Learning Objectives ? Compare the advantages and disadvantages of mon, regulated, contract, exempt and private carriers --- the five legal classes of carriers. ? Discuss the economic and service characteristics of intermodal transportation and explain the dominance of rail-truck (piggyback) intermodal service. Chapter 9 Management of Business Logistics, 7 th Ed. 3 Learning Objectives ? Discuss the economic rationale of using containerization. ? Discuss the economic and service characteristics of indirect and special carriers. Chapter 9 Management of Business Logistics, 7 th Ed. 4 Logistics Profile: Victoria ’ s Secret ? 33 to 35 percent of the $ billion store, catalog, and merce sales ship via the United States Postal Service (USPS). ? Victoria ’ s Secret uses Global Logistics, a package expeditor, to service its southeast USPS shipments, with the object of three to five day service. ? All loads to the USPS are palletized and are standing appointments and live uploads. Chapter 9 Management of Business Logistics, 7 th Ed. 5 The Role of Transportation in Logistics ? Transportation is the physical link connecting the firm to its suppliers and customers. ? In a nodes and links scenario, transportation is the link between fixed facilities (nodes). ? Transportation also adds value to the product by providing time and place utility for the firm ’ s goods. Chapter 9 Management of Business Logistics, 7 th Ed. 6 The Role of Transport
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