As we all know, cost is often only one of the factors we consider when making a major purchase. For example, service can also be an important factor in buying decisions. Briefly describe at least three transportation-related service characteristics that are important to shippers and consumers in a supply chain. Solution Ans:1)Transport Costs and Rates: Transport systems face requirements to increase their capacity as well as speed and reduce the cost off transportation.All tthe users whether it is individual,enterprise,government try to bargain with the negotiate or bargain with the transfer of goods,information,people from one place to the other.There are also costs involved in gathering information, negotiating, and enforcing contracts and transactions, which are often referred as the cost of doing business. Trade involves transactions costs that all agents attempt to reduce since transaction costs account for a growing share of the resources consumed by the economy.The costs include fixed and variable (operating) costs, depending on a variety of conditions related to geography, infrastructure, administrative barriers, energy, and on how passengers and freight are carried. Three major components, related to transactions, shipments and the friction of distance, impact on transport costs. Rates are the price paid by the consumer for the usage of transporation services.They are the negotiated monetary cost of moving a passenger or a unit of freight between a specific origin and destination. Rates are often visible to the consumers since transport providers must provide this information to secure transactions. They may not necessarily express the real transport costs. 2)Time Time is the major factor which the people considered for the characteristics that are important to shippers and consumers in a supply chain. 3)Capital costs: Costs applying to the physical assets of transportation mainly infrastructures, terminals and vehicles. They include the purchase or major enhancement of fixed assets, which can often be a one-time event. Since physical assets tend to depreciate over time, capital investments are required on a regular basis for maintenance..

1. As we all know, cost is often only one of the factors we consider when making a major purchase.
For example, service can also be an important factor in buying decisions. Briefly describe at least
three transportation-related service characteristics that are important to shippers and consumers
in a supply chain.
Solution
Ans:1)Transport Costs and Rates:
Transport systems face requirements to increase their capacity as well as speed and reduce the
cost off transportation.All tthe users whether it is individual,enterprise,government try to bargain
with the negotiate or bargain with the transfer of goods,information,people from one place to the
other.There are also costs involved in gathering information, negotiating, and enforcing contracts
and transactions, which are often referred as the cost of doing business. Trade involves
transactions costs that all agents attempt to reduce since transaction costs account for a growing
share of the resources consumed by the economy.The costs include fixed and variable
(operating) costs, depending on a variety of conditions related to geography, infrastructure,
administrative barriers, energy, and on how passengers and freight are carried. Three major
components, related to transactions, shipments and the friction of distance, impact on transport
costs.
Rates are the price paid by the consumer for the usage of transporation
services.They are the negotiated monetary cost of moving a passenger or a unit of freight
between a specific origin and destination. Rates are often visible to the consumers since transport
providers must provide this information to secure transactions. They may not necessarily express
the real transport costs.
2)Time
Time is the major factor which the people considered for the characteristics that are important to
shippers and consumers in a supply chain.
3)Capital costs:
Costs applying to the physical assets of transportation mainly infrastructures, terminals and
vehicles. They include the purchase or major enhancement of fixed assets, which can often be a
one-time event. Since physical assets tend to depreciate over time, capital investments are
required on a regular basis for maintenance.