Compare and Contrast the Transport Principles of Economy of Scale and Economy of Distance
Assignment
On
Business logistics
Course Code: MKT-406
Program: BBA
Semester: FALL-10
Submitted To:
Mr. Md. Ismail haider
Lecturer of Marketing
Department of Marketing
BUBT
Submitted By:
Farhan Nowroze Noor
ID: 01 Intake: 14th
[pic]
Bangladesh University of Business & Technology
(BUBT)
Submission Date: 30th December, 2010
1. Compare and contrast the transport principles of economy of scale and economy of distance. Illustrate hoe they combine to create efficient transportation?
Ans: There are two fundamental principle that impact transportation efficiency
Economy of scale in transportation is the cost per unit of weight decreases as the size of a shipment increases. Transportation economy of scale exist because fixed cost associated with transportation a load over the increase weight and cost of loading, unloading, invoicing.
Ex: shipment, larger capacity transportation vehicle (rail, water, airplane) are less cost per unit of weight than smaller capacity transportation vehicle (bus, truck).
Economy of distance: it refers to decreased transportation cost per unit of weight as distance increases. It also referred as tapering principle.
Ex: at a small weight shipment 800 miles will cost less to perform than two shipment each moving 400 miles.
2. Describe the five modes of transportation, identifying the most significant characteristic of each.
Ans: Five modes of transportation are:
o Rail
o Truck
o Air
o Water
o Pipeline
Rail: characteristics of railway transportation:
I. Economically transport capability for large shipment
II. Railroads have largest percentage of intercity freight ton miles
III. Train enjoys
On
Business logistics
Course Code: MKT-406
Program: BBA
Semester: FALL-10
Submitted To:
Mr. Md. Ismail haider
Lecturer of Marketing
Department of Marketing
BUBT
Submitted By:
Farhan Nowroze Noor
ID: 01 Intake: 14th
[pic]
Bangladesh University of Business & Technology
(BUBT)
Submission Date: 30th December, 2010
1. Compare and contrast the transport principles of economy of scale and economy of distance. Illustrate hoe they combine to create efficient transportation?
Ans: There are two fundamental principle that impact transportation efficiency
Economy of scale in transportation is the cost per unit of weight decreases as the size of a shipment increases. Transportation economy of scale exist because fixed cost associated with transportation a load over the increase weight and cost of loading, unloading, invoicing.
Ex: shipment, larger capacity transportation vehicle (rail, water, airplane) are less cost per unit of weight than smaller capacity transportation vehicle (bus, truck).
Economy of distance: it refers to decreased transportation cost per unit of weight as distance increases. It also referred as tapering principle.
Ex: at a small weight shipment 800 miles will cost less to perform than two shipment each moving 400 miles.
2. Describe the five modes of transportation, identifying the most significant characteristic of each.
Ans: Five modes of transportation are:
o Rail
o Truck
o Air
o Water
o Pipeline
Rail: characteristics of railway transportation:
I. Economically transport capability for large shipment
II. Railroads have largest percentage of intercity freight ton miles
III. Train enjoys