Most transshipment network modeling problems assume the costs are constant. For example, the costs of shipping...

Most transshipment network modeling problems assume the costs are constant. For example, the costs of shipping a product from one city to another are assumed fixed. This can change over time if fuel costs change. If you knew the distribution of fuel costs, how could the distribution of fuel costs be incorporated into the transshipment problem? Discuss the benefits of employing this approach.

Expert Solution

Answer :

If we know the dissemination of fuel costs, the appropriation of fuel costs be fused into the transshipment issue according to the utilization premise or thing to thing premise.

As we as a whole realize that the fuel cost are changed everyday so on the off chance that we know the circulation of fuel costs.

At that point we can ascertain the today change in cost of fuel when contrasted with last rates and afterward the absolute costs is conveyed or added to the transportation cost.

Truly there are advantages of it .It is given as follows

i.e.,

The advantages are that we can accurately gauge the expense of delivery or we can accept shipping charge according to the adjustments in the fuel costs.

Presently at present we can take the fixed sum which is commonly gets negative to us because of the changing in fuel rates however on the off chance that we can include the progressions of the expense of the fuel to the delivery charges then we can charge the great costs of the transportation according to the right gauges.

orchestra answered 2 years ago

Transshipment network modeling problems assume the costs are constant. like the costs of shipping a product...

Transshipment network modeling problems assume the costs are constant. like the costs of shipping a product from one city to another are considered fixed. In reality, over time fuel costs change. If you knew the distribution of fuel costs, how could the distribution of fuel costs be incorporated into the transshipment problem? Are there any benefits to it?

Why is it unrealistic to assume that inventory costs will remain constant over time? please explain.

1. Which of the following statements is most CORRECT regarding sunk costs? A) An example of...

1. Which of the following statements is most CORRECT regarding sunk costs? A) An example of a sunk cost is the cost associated with restoring the site of a strip mine once the ore has been depleted B) Sunk costs must be considered if the IRR method is used but if not the firm relies on the NPV method C) A good example of a sunk cost is money that a banking corporation spent last year to investigate the site...

Microeconomics Construct Production Possibility Frontiers graphs with constant opportunity costs for United States and Chile. Assume there...

Microeconomics Construct Production Possibility Frontiers graphs with constant opportunity costs for United States and Chile. Assume there are two goods in these economies: Wheat and Copper. If the U.S. puts all of its resources into the production of wheat, it can produce 300,000 units of wheat; if it puts all of its resources into the production of Copper, it can produce 150,000 units of copper. If the Chile puts all of its resources into the production of wheat, it can produce 100,000...

Question