Logistics: Economics and Supply Chain Essay

1255 Words6 Pages
Transportation: Critical Link In The Supply Chain

Study Questions
1. What are the major forces or external factors that have impacted our economy during the latter part of the 20th centuries? How have each of these factors influenced companies as well as their respective supply chains? Which of these factors do you feel is the most important for a computer company? Why?

In the 21st century, transportation systems will face significant challenges and problems because of global environment and the changing economic base in the United States. With combination of economic, technological, sociocultural, political, and biological factors. Many organizations developed demand-driven supply chains which could rapidly respond to
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2. What is the actual nature of transportation demand? How does transportation demand influence individual companies in the economy?
Transportation is an important and pervasive element in our society that affects every person either directly or indirectly. Goods we consume, our economic livelihoods, our mobility, and our entertainment are impacted by transportation. U.S. economy, as well as the economies of most industrialized countries, is attributable in part to the benefits derived from mass production and the associated division or specialization of labor that enables mass production to occur.
We depend upon transportation to move these goods and provide these services to different locations in an efficient and effective manner. Transportation plays an important role in helping to bridge the supply and demand gap inherent in the mass-production approach. People move from areas where they are currently situated to areas where they desire to be on a daily, weekly, or permanent basis. Transportation has a definite, identifiable effect upon a person’s lifestyle. They can make decisions about where to work, live, and play are influenced by transportation.

10. Provide a brief overview of the three phases of development for supply chain management.

Supply Chain Management is the integrations of the flows of products and materials, services, information, and financials through the entire supply pipeline from the supplier’s
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