Models for Addressing Transportation Problems in Businesses

2021-07-29 08:46:17
3 pages
763 words
University of California, Santa Barbara
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The above demand graph above shows that as the price decreases from 65% to the current one $50, the number of the trips in a week increases from 30 to 50.

VO (30) to V1 (50)

UO $65 to UI (50)

The Basic Benefit for the motorist will be

((V1 + VO)/2) * (U0-U1)

(50 + 30)/2 * ($65- $50)

80/2 *15

40*15 = $600

Therefore, the Basic Benefits Calculation formula in chapter 3 of the book can be used as shown above in estimating the benefit of a motorist using 175 versus US41 from Atlanta to Chattanooga. The benefit that the motorist will get by using the formula in $600 which is an advantage to the motorist. Therefore, the Basic Benefits Calculation formula is important in the transit projects as it helps in getting the benefits one can get by using one way instead of the other.

Question 2

The two modelling approaches which can be used in the study of transportation problems include input-output models and econometric models. The input-output models are static models which deal with one-time infusion in the economy (Archer et al., 2009). The models also make utilization of less rigorous calculations. Hence, they are not expensive compared to the econometric transportation models. It is an advantage to the transportation industry because they are cheaper as compared to the other models which create a competitive advantage.

The econometric models usually involve various variables and equations that needs rigorous calculations and need a great deal and expertise to run. The person running the model should have more knowledge it. The models are also difficult and complicated to understand when comparing it to the input-output models which are based on simple multiplier relationships. The only advantage of these models is that they can offer a more detailed assessment of specific regions having diverse urban economies. The models are also more widespread naturally, and they are more expensive as compared to the input-output models. Therefore, the models can be advantageous for the individuals who need detailed assessment. However, if one does not need comprehensive evaluation on some areas, then input-output models are recommended.

Question 3

The Efficient Consumer Model also is known as ERC refers to the realization of a fast, simple and consumer-driven system where all the links of the logistics and supply chain work together to satisfy the needs of the consumers at the lowest possible cost. The basic concepts which are involved in this model emphasize on the use of the techniques to help in increasing the level of services that are offered to the consumers with efficiency to the various links needed in the supply chain. This model is essential for the multiple approaches that can be used in providing optimal transit logistics solutions and solving transportation problems.

ERC methodology is also regarded as a method that involves visually mapping the flow of materials and information through all the production steps (Archer et al., 2009). The correct usage of information technology plays a significant role in the business functions like companies to achieve global efficiency, high probable supply chain activities, and high productivity. Additionally, the customized ERP (Enterprise Resource Planning) solutions and the specialized forecasting software assist in the integration of the worldwide dispersed selling, purchasing, and other functions resulting into an excellently structured stockroom and increased yield and effectiveness. Therefore, for successful implementation of the ERC method, the top management needs to take proper action and efficient due diligence and ask all the team members to share their ideas that are innovating to all the geographical locations. This strategy helps a company to achieve its goals and aims with regards to logistics and supply chain.

Question 4

CPFR refers to an evolving business practice which helps in reducing the supply chain costs through promoting greater cooperation, visibility, and integration among the trading partners in the supply chain (Archer et al., 2009). Therefore, CPFR complements ECR through providing insights that are related to the techniques needed to fulfil the demands of the customers to accomplish lean manufacturing.

ERC and CPFR models are used in the preliminary stage in the supply chain links to be cognizant of the improvement methods that should be implemented. Later, the methods can be benchmarked to make them as standard operating procedures to help increase efficiency, responsiveness, and productivity in the supply chain filed. Additionally, technology plays a significant role in implementing the two models to assist in the daily operations of business. Technology will also continue to reshape the consumers choice, interactivity models, and choice. Companies should strive to tap technology power as it will improve their competitive advantage.



Archer, D., Boehlert, S., Gorton, S. and Sabo, M. (2009). Performance Driven: A New Vision for U.S. Transportation Policy.


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