How An Organization Goes Up With A Price Is Challenging And Sometimes Almost Impossible

1787 Words8 Pages
Literature Review on Article David B Ross American Military University Literature Review on Article Trying to understand how an organization comes up with a price is challenging and sometimes almost impossible. Throughout this paper we are going to look at some items that play a role in determining the overall cost of transportation. Things that can be discussed is possible ways to cut down on the cost of transportation and ultimately save your business some money. Article I The trucking industry is one of the largest transportation sector in America. The American Transportation Research Industry conducted a study on the operational cost of trucking in 2008 and updated it in 2011. This research utilized an updated version of the survey…show more content…
The highest operation cost for the trucking industry continued to be fuel and drivers wages. This cost calculated to be about 58% of the average operating cost. The article went on to break down other factors that go into the operational cost of trucking. Driver’s benefits equaled ten percent, maintenance at eight percent, and insurance at three percent. It is important to understand these cost as they all play a factor in the cost of transportation. ARTICLE 2 Throughout this article on the impacts of reduced oil prices the author shows their qualitative research method. In order to be classified as a qualitative, the research methods are expressed in motive and generalizations (Research Methodology, 2015). They tend to talk more about prior decisions of the industry and how certain areas may not save any money due to them locking up longer-term hedging contracts at a price of $100 per barrel (Tipping, Schmahl, & Duiven, 2015). Even though the companies can go back and renegotiate these contracts they still stand to lose some money. Throughout the authors research he was able to use data from the U.S. Department of Transportation. Some of the trucking companies stand to gain some customers back with falling prices as they will be able to lower their prices. The authors were able to gain this information from the Journal of Commerce. This information
Open Document