Essay About Place Utility And Economic Development

Supply Chain Management of Temple
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SCM 3516 Transportation and Logistics ManagementHomework # 3Q1) Defend this statement – “Transportation is a vital factor for economic development”. I think:- Transportation promote the global economic development, the logistics connect the producera and consumers to create a more efficient division of production. First I think the improve the transportation can reducing the cost and time. – Now the economic development focus on global economic, the transportation make business access to wider markets and enlarge the economic scale. From the Chp 2, I learned that:As a Macroecomonic level, the transportation is a shift in the economy from goods to more services. From a Microeconomic level, the transportation helps determine the economic value of products, reduce the transport cost, and landed cost, and reduce the time.Q2) Explain the nature and importance of time, quantity and place utility in how they contribute to the value of a product.- The time utility means the demand for a pruduct during certain time periods, and from Lardner’s law of squares, the speed of transportation doubles, the potential area of service would quadruple. The time utility is important because the time can increase the efficiency and effectively, also protect the transaction successful.

– The quantity utility means gives assurance that the goods will arrive without damage in the right quantity, inrecent years with higher inportance placed on minizing safety stock inventories, the quantity utility has gained all the more importance.- The place utility which means reduction in transportation costs. An efficient transportation system creates place utility.- By the way, the time and quantity utilit increase the value of goods.Q3) Solve Case study 2.1: ‘Opportunity Knocks’: Mr. Edwards has asked you to develop a set of discussion points that would point out the economic and social benefits from a new highway link in central Pennsylvania.- The link between an efficient transportation can lower the transport cost per mile, create more output, shipping more goods and services produced, and increase the employment and wealth.- From the FTI aspect, the FTI= total ton miles/ total GDP, if create a new highway link, that will lower the FTI, which means it can shift in the economy from goods to more services, and increase in freight transportation productivity. – From the Lardner’s law of Squares, the transportation doubles, increase the potential area of service would quadruple, which means the new highway link can create more opportunity to increase profit.