Transportation Management Overview
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Transportation Management Overview

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Questions and Answers

What is the primary impact of transportation on society?

  • It solely affects economic growth.
  • It primarily affects environmental sustainability.
  • It influences mobility, goods consumption, and entertainment. (correct)
  • It is not relevant to individual livelihoods.

    • Which unit is used to measure the demand for freight transportation?

  • Passenger-mile
  • Load-mile
  • Freight-distance
  • Ton-mile (correct)

    • What does aggregate demand for transportation consist of?

  • The total production output of the transportation industry.
  • The average distance traveled by all citizens.
  • The economic growth of a region.
  • The sum of individual demands for freight and passenger transportation. (correct)

    • How can demand for passenger transportation be quantified?

    <p>As passenger-mile.</p> Signup and view all the answers

    Which of the following statements best describes freight transportation demand?

    <p>Freight transportation demand is inelastic.</p> Signup and view all the answers

    What is the relationship between transportation and mass production?

    <p>Transportation is essential for the distribution of mass-produced goods.</p> Signup and view all the answers

    Which of the following best defines transportation demand?

    <p>A request to move a specified quantity of cargo or people a specific distance.</p> Signup and view all the answers

    Which of these combinations reflects a demand for 200 ton-miles of freight transportation?

    <p>100 tons traveling 2 miles.</p> Signup and view all the answers

    What is the primary reason freight rate reductions will not drastically increase the demand for freight transportation?

    <p>Transport costs represent less than four percent of a product's landed costs.</p> Signup and view all the answers

    How is the demand for freight transportation best described?

    <p>It is a derived demand based on product needs.</p> Signup and view all the answers

    Which factor affects the holding costs of inventory?

    <p>The transit time of the shipments.</p> Signup and view all the answers

    Why are reduced freight rates expected to increase freight volume handled by a specific mode?

    <p>Because it means more freight can be shipped at a lower cost.</p> Signup and view all the answers

    What is meant by place utility in transportation?

    <p>Moving goods to a location where their value increases</p> Signup and view all the answers

    What service characteristic refers to the consistency of transit time?

    <p>Reliability</p> Signup and view all the answers

    What is a significant consequence of unreliable transit times for freight receivers?

    <p>They need to increase inventory to avoid stockouts.</p> Signup and view all the answers

    Which of the following does NOT characterize transportation as a service?

    <p>Permanent ownership of goods</p> Signup and view all the answers

    What is included in the service requirements of freight shippers?

    <p>Equipment and communication needs.</p> Signup and view all the answers

    What is the role of equipment in transportation management?

    <p>It impacts both comfort for passengers and cost for freight</p> Signup and view all the answers

    What does time utility in transportation signify?

    <p>The occurrence of service at the required times for users</p> Signup and view all the answers

    What does accessibility refer to in the context of freight transportation?

    <p>The capability of providers to connect specific origins and destinations.</p> Signup and view all the answers

    How should transportation be viewed to make informed purchasing decisions?

    <p>As a collection of different service bundles from carriers</p> Signup and view all the answers

    What is one basic function of transportation in the production of goods?

    <p>To provide market accessibility to products</p> Signup and view all the answers

    What is the primary concern of security in transportation?

    <p>Ensuring the safety of goods in transit</p> Signup and view all the answers

    Which type of travel is primarily characterized by employment-related reasons?

    <p>Business travel</p> Signup and view all the answers

    What distinguishes vacation travel from business travel?

    <p>It is typically price sensitive and motivated by leisure.</p> Signup and view all the answers

    What is a unique demand that shippers have in transportation management?

    <p>Special requirements for equipment and facilities</p> Signup and view all the answers

    Which factor significantly impacts the air travel business market?

    <p>Schedule sensitivity</p> Signup and view all the answers

    What types of travel does personal travel typically include?

    <p>Travel to school and visits to home</p> Signup and view all the answers

    What is the essence of capability for a carrier in transportation management?

    <p>The ability to provide direct service between origin and destination</p> Signup and view all the answers

    How do vacation travelers typically view transportation in relation to their trip?

    <p>As part of the vacation experience</p> Signup and view all the answers

    What type of trips are characterized by having a consistent and repetitive origin and destination?

    <p>Work or school trips</p> Signup and view all the answers

    Which type of trip is least likely to attract transit service due to its less repetitive nature?

    <p>Miscellaneous trips</p> Signup and view all the answers

    What is one of the major factors that influences the choice of transportation method?

    <p>Departure and arrival schedule</p> Signup and view all the answers

    In the context of transportation cost, which of the following is NOT typically included?

    <p>Travel time</p> Signup and view all the answers

    What plays a significant role in passenger demand characteristics for transportation?

    <p>Travel equipment</p> Signup and view all the answers

    Why might speed of travel be considered advantageous in air travel?

    <p>It provides travelers with more productive time at the destination.</p> Signup and view all the answers

    Which characteristic is often important for vacation travel?

    <p>Entertainment and attention</p> Signup and view all the answers

    What can be a crucial factor when selecting travel based on speed?

    <p>Slow speed benefits for touring</p> Signup and view all the answers

    Study Notes

    Transportation Management

    • Transportation is the creation of place and time utility.
    • Place Utility: When goods are moved to places where they have higher value than they did at their origin.
    • Time Utility: When goods are moved at a time when they are most needed.
    • Transportation is a service with characteristics similar to purchasing goods.
    • Three key factors:
      • Movement service: Speed, reliability, and service frequency.
      • Equipment: Affects comfort, safety (passengers), and shipment preparation, size, and loading/unloading costs (freight).
      • Cost: Cost includes both the primary carrier charge and peripheral costs (pickup/delivery, packaging, damage charges, special services).
    • The user purchases a bundle of services from a carrier at a specific cost, with varying prices depending on the type of service.
    • Transportation is an economic factor in the production of goods and services.
    • Its primary function is to provide market access to products.
    • Transportation influences spatial and temporal relationships between geographic points.

    Freight and Passenger Transportation

    • Transportation is pervasive, affecting everyone directly or indirectly.
    • Mass production relies heavily on transportation due to specialization in production.
    • Transportation demand is measured in weight/passenger-distance units:
      • Freight: ton-miles
      • Passengers: passenger-miles
    • Freight demand:
      • Inelastic: Reducing freight rates does not significantly increase demand.
      • Price-sensitive (modal and specific carriers): Lower rates for a given mode can increase freight volume.
      • Derived demand: Based on product demand at a specific location.
    • Key service components for freight demand:
      • Transit time: Affects inventory levels and holding costs. Longer transit times means higher inventory levels.
      • Reliability: Consistency of transit time. Reliable carriers optimized inventory levels and minimize stockout costs.
      • Accessibility: Ability of the carrier to move freight directly between origin and destination.
      • Capability: Ability of the carrier to fulfill special service requirements (equipment, facilities, communications).
      • Security: Safety of goods in transit.
    • Passenger demand:
      • Categorized based on travel motivation:
        • Business travel: Employment related, price-insensitive.
        • Vacation travel: Price-sensitive, motivated by destination and experience.
        • Personal travel: Motivated by family visits, education, or emergencies.
      • Urban transit
        • Work/School: Consistent origin-destination pattern.
        • Shopping: Repetitive pattern.
        • Miscellaneous: Least repetitive, including recreational and medical trips.
    • Passenger demand characteristics:
      • Destination: Motivated by business, vacation appeal, or the journey itself (cruises).
      • Schedule and Speed: Convenient departure/arrival times, schedule consistency, and speed (advantage for business, disadvantage for tourism).
      • Cost: Includes fares and additional expenses (access, parking, accommodation, food).
      • Equipment: Part of the product's appeal, especially in luxury travel.
      • Entertainment and Attention: Important in vacation travel.

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    Related Documents

    Transportation Management PDF

    Description

    This quiz covers the essential concepts of transportation management, focusing on the utilities of place and time. You'll explore key factors such as movement service, equipment, and cost, which influence the effectiveness of transportation as an economic factor in production. Test your knowledge on how transportation creates value in the market.

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