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In 4-5 pages, list and discuss:1. What does the term private transportation mean?2. Explain the advantages and disadvantages of private trucking. Why do firms have private trucking fleets?3. Discuss the types costs incurred in operating private truck fleets versus using a for-hire carrier.4. What are the key items a firm should consider with respect to controlling a private fleet?5. Discuss leasing as an option for private trucking.The requirements below must be met for your paper to be accepted and graded:Write between 750 – 1,250 words (approximately 3 – 5 pages) using Microsoft Word in APA style, see example below.Use font size 12 and 1” margins.Include cover page and reference page.At least 80% of your paper must be original content/writing.No more than 20% of your content/information may come from references.Use at least three references from outside the course material, one reference must be from EBSCOhost. Text book, lectures, and other materials in the course may be used, but are not counted toward the three reference requirement.Cite all reference material (data, dates, graphs, quotes, paraphrased words, values, etc.) in the paper and list on a reference page in APA style.References must come from sources such as, scholarly journals found in EBSCOhost, CNN, online newspapers such as, The Wall Street Journal, government websites, etc. Sources such as, Wikis, Yahoo Answers, eHow, blogs, etc. are not acceptable for academic writing. LECTURE:Transportation and Fleet ManagementundefinedOverviewThe global commercial vehicle telematics market is set to reach US $11.2 billion by 2015. A focus on next generation vehicle telematics applications, such as fleet operation management systems, is expected to stimulate significant market growth. An increasing emphasis on convenience, safety and overall fleet efficiencies has spurred on the use of onboard fleet management systems in the transportation sector – particularly in the waste and recycling management industry. This growth is driven primarily by demand from waste management organizations to better manage the cost of fleet operations. New onboard fleet management technologies allow waste fleet owners to reduce costs by trimming unnecessary mileage, boosting productivity and improving overall customer service. Volatile fuel prices, which are forecasted to rally up when the economy rebounds, will offer an added impetus for fleet managers to adopt solutions that will help the reduce energy and fuel costs and expand profit margins. It is clear fleet management technologies are on the rise and are field-proven to deliver compelling bottom line and operational benefit (Fleetmind, 2013).Private TruckingA private truck fleet permits a organization to have greater control and flexibility in its transportation system so it can respond to customer needs, both external (for finished goods) and internal (for raw materials). The increased responsiveness is derived from the direct control that the private carrier has over the dispatching, routing, and delivery schedules of the fleet. Such control means the private carrier can lower transit times to the customer, lower inventory levels, and possibly lower inventory stock-outs. Because the driver is really an employee of the seller, improved relations may result from private trucking. The driver now has a vested interest in satisfying customer needs and in being courteous. In addition, the private carrier driver would probably exercise greater care in handling freight and would reduce the frequency of freight damage. Private fleets usually have higher driver retention due to better pay, benefits, and human resource policies. While national truckload carriers often have driver turnover over 100 percent, private fleets on average have 16 percent turnover. Some organizations use the private truck as a moving store, calling on many customers along a route to take orders and to deliver merchandise. (The delivery milk truck, now virtually extinct, is a good example of the moving store.) For such merchandising operations, a for-hire carrier does not allow the organization to exercise the necessary control and direction, and private trucking is the only viable alternative. The last-resort advantage of private trucking emanates from a lack of capable for- hire carrier service. Organizations that ship products requiring special equipment (for example, cryogenics [liquid gas] require a pressurized tank trailer) may have difficulty finding for- hire carriers with such special equipment and are virtually forced into private trucking to remain in business (Fleetmind, 2013).Private Trucking - DisadvantagesThere are disadvantages to private trucking, but the fact that there are so many private truck fleets suggests that the advantages can outweigh the disadvantages for many organizations. The organization’s analysis of costs and benefits of private trucking is critical at the evaluation stage as well as throughout the operation of the fleet. For example, interest on vehicles (investment) accounts for 3.2 cents per mile or approximately 12 percent of total fixed cost per mile, and because of the relatively low cost of borrowing money, vehicle interest cost has dropped from 25 percent in 1989 to 12 percent or less of total fixed costs in recent years. Management and overhead (office and garage) costs are approximately 13.6 cents per mile or about 50 percent of total fixed costs. It is quite common to find management costs being understated in a private trucking operation. Management time, and therefore costs, is siphoned from the primary business of the organization to assist in managing the fleet. Rarely is this “free” management talent accounted for in the private fleet cost analysis. Vehicle depreciation can represent about 32.1 percent of total fixed costs or 8.7 cents per mile. The actual cost of a truck depends upon the size, carrying capacity, engine, and market conditions (Coyle, 2016).Centralized vs. Decentralized OrganizationMany private fleets are centrally organized because that permits the fleet manager to provide service to different departments and divisions in the organization, thus increasing fleet utilization. A decentralized operation usually is found where separate divisions have different operating and vehicle requirements and have sufficient volume to make the separation economical.ConclusionPrivate trucking is the most frequently used and most pervasive form of private transportation. About half of the ton-miles of commodities shipped domestically by trucks are moved by private truck transportation. Private trucking is typically justified on the basis of cost (efficiency) or service (effectiveness). Some private fleet operators maintain that both objectives are achieved, which obviously enhances overall profitability of the company. The decision to provide private transportation service requires careful analysis of all the costs involved as well as the value of the benefits. The cost analysis requires estimating both fixed and variable/operating costs and is frequently very challenging to ensure accuracy (Coyle, 2016).It is safe to state that private trucking fleets are an integral segment of the transportation sys-tem employed by the shipping public in the United States and most other countries because of its relatively low start-up cost and flexibility of operations. At one time or another, almost every company will study or actually operate a private truck fleet, even if the fleet consists of only one truck (Coyle, 2016).undefinedReferencesBrasca, F. (2012). The Debate: Transportation Planning versus Transportation Execution. Supply Chain Nation. Retrieved from http://blog.jda.com/the-debate-transportation-planning-versus-transportation-execution/Coyle, John J., Novack, Robert A., Gibson, Brian J. (2016). Transportation: A Supply Chain Perspective (8th Ed.). Boston, MA: Cengage Learning.Delaney, R. (1999). A Look Back in Anger at Logistics Productivity. 10th Annual State of Logistics Report. Retrieved from http://www.clm1.org.Fleetmind. (2013). Dispelling Common Fleet Management Technology Myths. White Paper. Retrieved from http://www.fleetmind.com/pdfs/white-papers/whitepa...Hicks, R. (2013). An Exploration of Healthcare Inventory and Lean Management in Minimizing Medical Supply Waste in Healthcare Organizations. Ann Arbor, MI: ProQuestUSDOT. (2012). Transportation Risk Management: International Practices for ProgramDevelopment and Project Delivery. Federal Highway Administration Executive Summary. Retrieved from http://international.fhwa.dot.gov/scan/12030/12030.pdf