Least ost solution Essay Example | Topics and Well Written Essays - 750 words

Least ost solution - Essay ExampleAnalysis of the Supply Chain Project shows that transference points is not necessary or justified. The major economic factor which influences the effect of distance on rates is the element of cost. In transportation, certain costs ar incurred without regard to the actual movement per se.Products delivered by Canbide are classified as low-risk products. Carriers are required to come through connections and construct sidings for delivery of carload shipments to private sidings and to provide team tracks for loading and unloading. Switching service for these tracks must be provided on a reasonable basis. As a matter of practice, railroads often organize foot soldier switching and terminal companies, often on a joint basis, to perform these services. Since the firm is small and often closely held, it is not surprising that the organization of the motor carrier is the typically simple line type with a flow of authority from the owner downward through the organization. The flexibility of the trucks also accounts for another straightforward advantage, speed. While there is little or no difference in the absolute speed potential of surface vehicles (i.e., the miles per hour capacity of trucks and locomotives are slightly the same), the motor truck generally provides the shipper with superior service in regard to elapsed time (transit time), which is the ultimate measure of time for the shipper. Transportation service, like umteen other services or products, is sometimes produced under conditions of common cost