Question

In: Operations Management

what are some key influences that will impact transportation decisions over the next 5 years

what are some key influences that will impact transportation decisions over the next 5 years

Solutions

Expert Solution

Answer:

Key influences that will impact transportation decisions over the next 5 years:

-Economy:

Trends or changes in the economy affect the manufacturing and distribution process and this inturn affects the demand for transportation and the transportation decision is made based on the distribution and production

-Developments in technology:

Technological developments have made the production process easier and has increased the speed of production and the productivity has also increased.This had created efficiencies for drivers and optimized the overall transportation decisions

-Tightened budgets:

Companies want to cut down their costs and improve their productivity.So their transportation decision is based on the costs to ship the product and which mode of transportation would be cheap to cut down the costs and would be efficient in shipping their products.Cost for shipping increases day by day so effective mode of transportation would save costs for the company

-Shrinking capacity:

In the fast changing world,the transportation decisions is based on the economic growth ,and in the coming years the decisions should be based on government regulations and there may be driver shortage problems for transportation.So tranportation decisions should be based on government rules and based on driver availability and available mode of transport


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