Question: Rank the five transportation modes based on their relative performance across the following four dimensions: CO2 Emissions, Speed, Variable Costs, and Capacity (1=best performance; 5=worst

  1. Rank the five transportation modes based on their relative performance across the following four dimensions: CO2 Emissions, Speed, Variable Costs, and Capacity (1=best performance; 5=worst performance).

Mode

CO2 Emissions

Speed

Variable Cost

Capacity

Air

Ocean Shipping

Rail

Truck

Pipeline

  1. 2. When you order an item on line, you evaluate the delivery optionsshould I pay for next day air, can I wait for ground freight, can I get a deeply reduced rate for waiting a week or more? Companies evaluate similar trade-offs in their total logistics costs. Consider the following:
    • How does an increased customer service level affect total costs? Be specific, which elements of total cost does it influence? How does it affect each of these costs?
    • Thinking about what you know about companies like Amazon and other big players in the e-commerce market, what does your analysis tell you that they should emphasize? How does your answer compare to what they are actually doing?

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