SCHM 3310 Midterm: Exam 1 study guide

• School: Northeastern University
• Department: Supply Chain Management
• Course: SCHM 3310
• Professor: Paul Tagliamonte

Document Summary

Threats to development: political instability, terrorism, military actions, etc. Benefits of globalization: lower prices, more availability, potential for land and resource development, global interdependence and competition. By improving transportation infrastructure, you can improve the economy. Transportation is a derived demand: based on the demand for other goods, e. g. dependent on demand for a product in another location, and cheaper f(cid:396)eight (cid:449)o(cid:374)"t likely (cid:272)ha(cid:374)ge the de(cid:373)a(cid:374)d fo(cid:396) a fi(cid:374)ished good. Value of goods: place utility: strategic location of shipping centers, time utility: products must arrive when they"(cid:396)e de(cid:373)a(cid:374)ded, quantity utility: goods will arrive undamaged. Transportation and the environment: pollution, exploitation of natural resources, carbon footprint, noise. Railroad/motor/freight industries are subject to antitrust regulation: user charges: pay for services used by the carrier/mode, existence (cid:894)e. g. d(cid:396)i(cid:448)e(cid:396)"s li(cid:272)e(cid:374)se fee(cid:895, unit (e. g. tolls) There must be better funding coordination between the public and private sectors: overall lack of infrastructure, congestion, etc. Cost-of-service pricing: based on marginal cost or average cost.