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Transportationmanagement

Transportcostisinfluencedbysevenfactors.Thespecificfactorsaredistance,

volume,density,stow-ability,handling,liability,andmarket.Ingeneral,theabove

sequencereflectstherelativeimportanceofeachfactor.

Distanceisamajorinfluenceontransportationcostsinceitdirectlycontributes

tovariablecost,suchaslabor,fuelandmaintenance.

Thesecondfactorisloadvolume.Likemanyotherlogisticsactivities,

transportationscaleeconomicsexistformostmovements.Transportationcostperunit

ofweightdecreasesasloadvolumeincreases.

Thethirdeconomicfactorisproductdensity,whichincorporatesweightand

spaceconsiderations.Theseareimportantsincetransportationcostisusuallyquoted

intermsofdollarsperunitofweight,suchasamountperton.Intermsofweightand

space,anindividualvehicleisconstrainedmorebyspacethanbyweight.Oncea

vehicleisfullintermsofspace,itisnotpossibletoincreasetheamountcarriedeven

iftheproductislight.Sinceactualvehiclelaborandfuelexpensesarenot

dramaticallyinfluencedbyweight,higherdensityproductsallowrelativelyfixed

transportcoststobespreadacrossadditionalweight.Asaresult,theseproductsare

assessedlowertransportcostsperunitofweight.

Thestowabilityfactorreferstoproductdimensionsandhowtheyaffectvehicle

spaceultilization.Oddsizesandspaces,aswellasexcessiveweightorlength,donot

showwellandtypicallywastespace.Itemswithstandardrectangularshapesaremuch

easiertoshowthanodd-shapeditems.

Specialhandlingequipmentmayberequiredforloadingorunloadingtrucks,

railcars,orships.Furthermore,themannerinwhichproductsarephysicallygrouped

together(e.g.,taped,boxed,orpalletiz