Why is it important to account for congestion when pricing the use of transportation infrastructure?
Answer to relevant QuestionsConsider the supply chain involved when a customer purchases a book at a bookstore. Identify cycles in this supply chain and the location of the push/pull boundary. Wal-Mart designs its networks so that a DC supports several large retail stores. Explain how the company can use such a network to reduce transportation costs while replenishing inventories more frequently. What are some ways that a firm such as Wal-Mart benefits from good sourcing decisions? Why do you think assembly in the consumer electronics industry is performed by third parties, whereas assembly in the auto industry is almost never outsourced? How can a golf course use revenue management to improve financial performance?
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