Case Study Francisco Leon Grantham University LOG456 Emerging Trend Supply Chain Instructor: Dr. Rodney Hicks Due Date:12/27/2022 The recently announced acquisition of Coyote Logistics by UPS conjures up memories of the origins of UPS and the strategic journey to their present position in the logistics and supply chain world. Some logistics and supply chain professionals may not be aware of the relatively humble begin-nings of United Parcel as a small package delivery service for major retailers in East Coast cities like NYC, Philadelphia and Washington, D.C. Many urban families lived in very modest homes and did not own automobiles. They would use public transportation (bus and trolley cars) to get to the central districts in the city where the large multiple-story department stores were located to shop for non-food items, normally not available in the smaller neighborhood retail stores and/or to see more variety. If they had too many packages or the items were too large for the transit carriers, the items could be delivered by United Parcel. It was an invaluable service “for the times,” but “times change.”With the end of World War II, there was pent up demand and increased household savings from the War years. Families started to move from small, urban homes to larger suburban residencies with individual lots and most families acquired an automobile for convenience and shopping. This Post-War phenomenon had serious implications for United Parcel as retail stores started locating in shopping malls with free parking for shoppers which lessened the demand for parcel delivery. United Parcel had to do an evaluation of their business model and strategy, and ask the classic question, viz., “What Business Are We In.”United Parcel essentially answered the question by stating that they were a transportation company that specialized in moving small packages between and among businesses as well as residencies, that is, business-to-business, business-to-residences, and residences-to-residences. This restate-ment of their mission opened up many new opportunities but presented some major challenges going forward. Intrastate and interstate transportation carriers were highly regulated by the federal government and state agencies where operating authorities had to be approved. It was especially challenging for approval of interstate service. Also, it put them in direct competition with the U.S. Post Office which offered similar service but not direct pick-up at businesses and homes. Over time they mitigated these “roadblocks” and with the elimination of federal regulation of motor carrier transportation at the federal level, they could move ahead more aggressively. However, deregulation of transportation also provided an opportunity for another potential competitor, viz., Federal Express. Initially one could say that UPS provided surface trans.

1. Case Study
Francisco Leon
Grantham University
LOG456 Emerging Trend Supply Chain
Instructor: Dr. Rodney Hicks
Due Date:12/27/2022
The recently announced acquisition of Coyote Logistics by UPS
conjures up memories of the origins of UPS and the strategic

2. journey to their present position in the logistics and supply
chain world. Some logistics and supply chain professionals
may not be aware of the relatively humble begin-nings of
United Parcel as a small package delivery service for major
retailers in East Coast cities like NYC, Philadelphia and
Washington, D.C. Many urban families lived in very modest
homes and did not own automobiles. They would use public
transportation (bus and trolley cars) to get to the central
districts in the city where the large multiple-story department
stores were located to shop for non-food items, normally not
available in the smaller neighborhood retail stores and/or to see
more variety. If they had too many packages or the items were
too large for the transit carriers, the items could be delivered by
United Parcel. It was an invaluable service “for the times,” but
“times change.”With the end of World War II, there was
pent up demand and increased household savings from the
War years. Families started to move from small, urban
homes to larger suburban residencies with individual lots
and most families acquired an automobile for convenience and
shopping. This Post-War phenomenon had serious implications
for United Parcel as retail stores started locating in shopping
malls with free parking for shoppers which lessened the demand
for parcel delivery. United Parcel had to do an evaluation of
their business model and strategy, and ask the classic question,
viz., “What Business Are We In.”United Parcel essentially
answered the question by stating that they were a transportation
company that specialized in moving small packages between
and among businesses as well as residencies, that is, business-
to-business, business-to-residences, and residences-to-
residences. This restate-ment of their mission opened up
many new opportunities but presented some major
challenges going forward. Intrastate and interstate
transportation carriers were highly regulated by the federal
government and state agencies where operating authorities
had to be approved. It was especially challenging for
approval of interstate service. Also, it put them in direct

3. competition with the U.S. Post Office which offered similar
service but not direct pick-up at businesses and homes. Over
time they mitigated these “roadblocks” and with the
elimination of federal regulation of motor carrier
transportation at the federal level, they could move ahead more
aggressively. However, deregulation of transportation also
provided an opportunity for another potential competitor, viz.,
Federal Express. Initially one could say that UPS provided
surface transportation service and FEDEX provided air
service. However, that distinction has become blurred over time
as both companies moved aggres-sively to grow and
expand.Both UPS and FedEx have used acquisition of
established companies to expand the scope of their services and
global geographic reach. The end result has been the
development of two successful organizations who started as
delivery companies and have become much more comprehensive
logis-tics service companies who offer a variety of services for
businesses and individuals. UPS is currently ranked fourth as a
3PL with almost $6 billion in revenue. Both companies have
become household names as they have rode the wave of interest
and expansion of logistics and supply chain manage-ment into
the twenty-first century by providing service on a global
basis.Their ability to identify and meet the needs of global
organizations has accounted for their growth and expansion, but
competition and the need to be more efficient and effective has
necessitated a continual effort to improve and stay ahead of
their rivals. Coyote Logistics appears to be a “gem” in terms of
a “fit” for UPS just as GENCO Distribution was for FEDEX.
The latter provided entry into the ever growing product returns
or reverse logistics business for FEDEX. UPS is looking to
expand aggressively into the freight brokerage which is an
important part of Coyote’s success and profitabil-ity because of
their development of a proprietary scheduling technology for
managing that service. This same technology should be a
major benefit to UPS to handle their fleet of trucks
especially during the peak holiday season which has been a

4. serious challenge for UPS during the last several seasons. The
key takeaway here is that UPS has been able to change their
internal operations and business model to meet the challenges
and changes occurring in the external environment and to
recognize the criticality of the “final mile” of the supply chain
which is essentially a logistics function. Maybe the title of this
piece should be “Coyote Logistics and Wiley UPS”?
STUDY QUESTIONS
1. Provide a definition of logistics and a rationale for why is it
important in private companies and public organizations?
2. Explain the importance of logistics important on a macro
level and the contributions of logistics to the economy?
3. How does logistics add value in the economy? How does
logistics add value for firms? What, if any are the differences?
4. Explain the relationship between logistics and supply chain
management?
5. Compare and contrast the four major subdivisions of
logistics discussed in this chapter.
6. Discuss the relationship between manufacturing and logistics.
What are the tradeoffs between the two areas?
7. Physical distribution has a special relationship to marketing.
What is the nature of the relationship between logistics and
marketing? Is the relationship becoming more or less important?
Why?
8. Logistics encompasses a relatively large number of
managerial activities. Discuss five of these activities and why
they are important to logistics systems.
9. Why do companies analyze their logistics systems from
perspective of nodes and links?
10. What product characteristics affect logistics costs? Discuss

5. the effects of these charac-teristics on logistics costs.
Chapter 4 &
5
Francisco Leon
Grantham University
FIN307 Principles of Finance
Instructor: Mr. Sina Razaei
Due Date:12/27/2022

6. Questions
(4-1)
Define each of the following terms:
PV; I; INT; FVN; PVAN; FVAN; PMT; M; INOM
Opportunity cost rate
Annuity; lump-sum payment; cash flow; uneven cash flow
stream
Ordinary (or deferred) annuity; annuity due
Perpetuity; consol
Outflow; inflow; time line; terminal value
Compounding; discounting
Annual, semiannual, quarterly, monthly, and daily compounding
Effective annual rate (EAR or EFF%); nominal (quoted) interest
rate; APR; periodic rate

7. Amortization schedule; principal versus interest component of a
payment; amortized loan
(4-2)
What is an opportunity cost rate? How is this rate used in
discounted cash flow analysis, and where is it shown on a time
line? Is the opportunity rate a single number that is used to
evaluate all potential investments?
(4-3)
An annuity is defined as a series of payments of a fixed amount
for a specific number of periods. Thus, $100 a year for 10 years
is an annuity, but $100 in Year 1, $200 in Year 2, and $400 in
Years 3 through 10 does not constitute an annuity. However, the
entire series does contain an annuity. Is this statement true or
false?
(4-4)
If a firm’s earnings per share grew from $1 to $2 over a 10-year
period, the total growth would be 100%, but the annual growth
rate would be less than 10%. True or false? Explain.
(4-5)
Would you rather have a savings account that pays 5% interest
compounded semiannually or one that pays 5% interest
compounded daily? Explain.
(5-1)
Define each of the following terms:
Bond; Treasury bond; corporate bond; municipal bond; foreign
bond

8. Par value; maturity date; coupon payment; coupon interest rate
Floating-rate bond; zero coupon bond; original issue discount
bond (OID)
Call provision; redeemable bond; sinking fund
Convertible bond; warrant; income bond; indexed bond (also
called a purchasing power bond)
Premium bond; discount bond
Current yield (on a bond); yield to maturity (YTM); yield to call
(YTC)
Indentures; mortgage bond; debenture; subordinated debenture
Development bond; municipal bond insurance; junk bond;
investment-grade bond
Real risk-free rate of interest, r*; nominal risk-free rate of
interest, rRF
Inflation premium (IP); default risk premium (DRP); liquidity;
liquidity premium (LP)
Interest rate risk; maturity risk premium (MRP); reinvestment
rate risk
Term structure of interest rates; yield curve
“Normal” yield curve; inverted (“abnormal”) yield curve
(5-2)
“Short-term interest rates are more volatile than long-term
interest rates, so short-term bond prices are more sensitive to

9. interest rate changes than are long-term bond prices.” Is this
statement true or false? Explain.
(5-3)
The rate of return on a bond held to its maturity date is called
the bond’s yield to maturity. If interest rates in the economy
rise after a bond has been issued, what will happen to the
bond’s price and to its YTM? Does the length of time to
maturity affect the extent to which a given change in interest
rates will affect the bond’s price? Why or why not?
(5-4)
If you buy a callable bond and interest rates decline, will the
value of your bond rise by as much as it would have risen if the
bond had not been callable? Explain.
(5-5)
A sinking fund can be set up in one of two ways. Discuss the
advantages and disadvantages of each procedure from the
viewpoint of both the firm and its bondholders.