Over-land Trucking and Freight: Relevant Costs for Decision Making*

Accounting
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Over-land Trucking and Freight: Relevant Costs for Decision Making*

May 3rd, 2015

Economic theory suggests several methods for leveraging a shift to the optimal mode. What remains unclear, however, is which of those methods would yield the highest benefits at the lowest costs and whether the best feasible method would generate high enough net benefits to justify a shift. The objective of the tasks in this project is to make recommendations on policy actions that will achieve desirable results. 

It is reasonable to deduce that policy interventions can shift the balance among these factors. Commodities with high tonnage and mileage are of particular interest as it is those characteristics that make the commodity most suitable for a shift from truck to rail.

  • Total Logistics Costs -Order and handling costs,Transportation charges a Loss and damage costs a Capital carrying cost in transit a Inventory carrying cost at destination a Unavailability of equipment costs a Service reliability costs a Total Logistics Costs a Intangible service costs e.g. Billing processes
  • Physical Attributes of Goods-Shipment size c Package characteristics c Shipment shelf life a Shipment value
  • Flow and Spatial Distribution of Shipments -Shipment frequency c Flow and Spatial Distribution of Shipments c Distance of Shipment
  • Flow and Spatial Distribution of Shipments -Capacity a Trip time and reliability a Equipment availability a Customer Service a b Modal Characteristics a Handling Quality – Damage Loss Reputation

May 3rd, 2015

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May 3rd, 2015
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