QuestionQuestion

Problem 1
A manufacturer of goods uses two factors to decide whether to use truck or rail for movement of its products to market: cost and total travel time. The manufacturer uses a utility formula that rates each mode. The utility formula is U = 5C +10T, where C is cost ($/ton) and T is time (hours). For a given shipment of goods, a trucking firm can deliver in 16 hours and charges $25/ton, whereas a railroad charges $17/ton and can deliver in 25 hours. Note: the lower the Utility value the more favorable the mode.
• Which mode should the shipper select based on the Utility Formula for the shipment of 1 ton?   You must show your work as to how you arrived at the answer.
• What other factors should the shipper take into account in making a decision? (Discuss at least two factors.)

Problem 2
An individual is planning to take an 800-mile trip between two large cities. Three possibilities exist: air, rail, or auto. The person is willing to pay $25 for every hour saved in making the trip. The trip by air costs $600 and travel time is 8 hours, by rail the cost is $450 and travel time is 16 hours, and by auto the cost is $200 and travel time is 20 hours.
• Which mode is the best choice based on cost? You must show your work as to how you arrived at the answer.
• What factors other than cost might influence the decision regarding which mode to use? (Discuss at least two factors.)

Problem 3
a. What are the four principal modes for moving freight?
b. Which of these four modes carries the largest share of ton-miles? Make sure to list the value of ton-miles in your answer.
c. Which of these four modes carries the lowest? Make sure to list the value of ton-miles in your answer.
Even though your textbook may have some statistics on this, it may be out-of-date. Therefore, make sure that you research on the web (e.g., Bureau of Transportation Statistics) for the latest statistics, and remember to cite your sources.

Problem 4
a. What are the four principal modes for moving people?
b. Which of these four modes carries the largest share of passenger-miles? Make sure to list the value of passenger-miles in your answer.
c. Which of these four modes carries the lowest? Make sure to list the value of passenger-miles in your answer.
Even though your textbook may have some statistics on this, it may be out-of-date. Therefore, make sure that you research on the web (e.g., Bureau of Transportation Statistics) for the latest statistics, and remember to cite your sources.

Solution PreviewSolution Preview

These solutions may offer step-by-step problem-solving explanations or good writing examples that include modern styles of formatting and construction of bibliographies out of text citations and references. Students may use these solutions for personal skill-building and practice. Unethical use is strictly forbidden.

Problem 1:
- Truck: U= 5x25 + 16 = 141
- Railroad: U = 5x17 + 25 = 110 – this one to be selected
Reliability of the vehicle/mode – The chosen mode must be reliable. All factors will turn out to be useless if the vehicle develops some fault or is prone to develop fault. If the mode is not reliable than it will result in loss of both time and money. Reliability again becomes important on the basis of situation....

By purchasing this solution you'll be able to access the following files:
Solution.docx.

$67.50
for this solution

or FREE if you
register a new account!

PayPal, G Pay, ApplePay, Amazon Pay, and all major credit cards accepted.

Get College Homework Help.

Are you sure you don't want to upload any files?

Fast tutor response requires as much info as possible.

Decision:
Upload a file
Continue without uploading

SUBMIT YOUR HOMEWORK
We couldn't find that subject.
Please select the best match from the list below.

We'll send you an email right away. If it's not in your inbox, check your spam folder.

  • 1
  • 2
  • 3
Live Chats